One Of The Best States To Live In 2025 Ranks 29th Overall For Affordability

Reasonable prices can be a key factor when deciding where to live, and, affordability-wise, the Land of 10,000 Lakes rests in a middling position. Yet it's listed as one of the top ten best states to live in 2025, coming in fourth place according to CNBC's rankings that rely upon data-driven quality-of-life methodologies. To start untangling this interesting blend of ratings, here's information about the cost of living and housing affordability by U.S. News & World Report. Minnesota comes in at #32 in overall costs of living and #29 in housing affordability. In related rankings, the state comes in at #28 for its economy and #13 for fiscal stability. The Missouri Economic Research and Information Center (MERIC) listed Minnesota as the 21st most affordable state in Q32025, with its cost of living 5.0% cheaper than the national average and housing at 16.0% lower. 

As far as house prices, Zillow recorded the October 2025 average value in Minnesota as $340,597, compared to the national average of $360,727. Data from Salary.com reported average housing expenses for a single person in Minnesota at $1,032 and, for a family of four, $1,892 — stating that this is 14% less than national costs. Energy costs are 12% lower in Minnesota at $154 for a single person and $264 for a family of four. Food prices, however, are 2% above average at $408 for one person and $1,326 for four. 

CNBC graded Minnesota B+ for quality of life, awarding the state 189 out of a possible 265 points. Strengths noted include its inclusiveness, workers' protections, reproductive rights, and healthcare. The Mayo Clinic is located in Rochester, Minnesota, and Newsweek ranked this healthcare organization No. 1 in the world, doing so for the seventh year in a row. CNBC reported that Minnesota has the seventh-highest number of primary physicians per capita, with one of the lowest percentages of uninsured residents. Plus, people have more buying power in Minnesota, overall, because it's the state with the highest average credit scores. Quality credit scores typically translate into lower interest rates on loans and more likely approvals, which gives people in Minnesota more ability to live life in ways of their choice, which can naturally add to quality of life.

CNBC noted one area of weakness for Minnesota: Childcare. Nearly six million people live in the state, but there are only around 1,800 licensed childcare centers. Plus, according to Child Care Aware of America, child care expenses take up an average of 14% of a married couple's income. As a concern for later in life, Minnesota is one of the states that taxes Social Security benefits. According to the Minnesota House of Representatives, in 2025, people are fully exempt from this tax up to $54,160 if married but filing separately; $84,490 if filing as a single or as the head of household; and $108,320 if married and filing jointly.