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Moving from Illinois to Minnesota: Cost of Living & Key Differences
-
Josh Pennington
- April 23, 2026
- 12:01 pm
Illinois is one of the top origin states for people relocating to Minnesota, and if you’ve spent any time living in the Chicago metro, the reasons aren’t hard to understand.
Why People Are Leaving Illinois for Minnesota
Property taxes. Traffic. The cost of owning or renting in desirable neighborhoods. The general feeling that you’re paying a lot for the privilege of living somewhere that increasingly makes it hard to get ahead.
The Twin Cities don’t offer a dramatic lifestyle change if you’re coming from the Midwest — but they do offer a reset on the financial side, with a city that has a lot of the same energy and amenities at a meaningfully different price point.
The conversation among Illinois transplants usually starts with property taxes. Chicago and the surrounding suburbs have some of the highest effective property tax rates in the country. For homeowners, this has a compounding effect on overall housing costs that doesn’t show up in the listing price — but absolutely shows up in your monthly payment.
Beyond taxes, the common themes we hear:
- Rising cost of living without proportional wage growth in many industries
- Traffic and commute fatigue in the Chicago metro
- A desire for a calmer pace without giving up access to a real city
- Better housing value for what they’re spending
- A fresh start in a market that still feels like it’s growing rather than straining
Minnesota has a state income tax, and it’s not the lowest in the country. But for many Illinois homeowners, the elimination of Illinois-level property taxes more than compensates — and the overall monthly cost picture tends to look better once people run the full comparison.
💰 Cost of Living: Twin Cities vs Chicago
This is where the numbers get interesting.
The listing price is only part of the story. Illinois property tax rates can run 2–3x higher than Minnesota’s effective rates in many comparable communities. A $400,000 home in a Chicago suburb can carry annual property taxes of $8,000–$12,000. A comparable home in the Twin Cities is typically $4,000–$6,000.
That difference alone changes the monthly math significantly.
Home Prices
- Twin Cities median: ~$350,000–$400,000
- Chicago metro: highly variable — city neighborhoods often run $400,000–$600,000+, inner suburbs are comparable to Twin Cities but with higher property taxes
Rent
Rental prices in the Twin Cities are generally competitive with or lower than comparable Chicago neighborhoods.
- 1-bedroom (Twin Cities): $1,200–$1,800/month
- 1-bedroom (Chicago neighborhoods): $1,400–$2,200/month depending on area
Overall Monthly Costs
For most people making the move from Illinois, the Twin Cities tend to feel noticeably more affordable once they factor in housing costs, property taxes, and day-to-day expenses together. Check out our full cost of living breakdown for Minneapolis and St. Paul to see how the categories stack up.
Find out how much home you can afford in the Twin Cities
Use our home loan calculator to estimate your total mortgage payment, including taxes and insurance. Simply enter the price of the home, your down payment, and details about the home loan, to calculate your mortgage payment, schedule, and more.
❄️ Weather: Chicago vs Minneapolis
Both cities are cold, that’s just the truth.
But there are real differences.
Both cities have strong snow removal infrastructure. Both have populations that take winter in stride. If you survived Chicago winters, you’ll handle Minneapolis.
🧤 Comparisons
Chicago winters are heavily influenced by Lake Michigan — wind is a major factor, creating that famous wind chill that can make a 25°F day feel brutal. Snowfall is significant and can be unpredictable, with the lake effect producing heavy snow events in certain corridors.
Minneapolis winters are cold — often colder than Chicago in terms of raw temperature — but the cold here is drier and tends to be more consistent. People often say Minnesota cold is easier to dress for than Chicago cold because it’s more predictable and less wind-driven.
Both cities have strong snow removal infrastructure. Both have populations that take winter in stride. If you survived Chicago winters, you’ll handle Minneapolis.
The Big Difference is Summer
The Big Difference is SummerMinneapolis summers are genuinely excellent
You actually WANT to be outdoors.
Warm, sunny, low humidity compared to Chicago, and loaded with outdoor options. The lakes make a real difference. Chicago’s lakefront is beautiful, but access is concentrated. In the Twin Cities, lakes are distributed throughout the metro and feel like a part of everyday life rather than a destination.
For a full seasonal breakdown, check out our Minnesota weather guide.
🏡 What the Twin Cities Offers That Chicago Doesn’t
This isn’t about Chicago being a bad city — it’s one of the greatest cities in the world. But for people who are done fighting the cost and congestion, the Twin Cities offer a few things that are genuinely hard to replicate:
Shorter commutes. The Twin Cities metro is more compact. Even from outer suburbs, commute times tend to be shorter and less stressful than comparable distances in Chicago.
More attainable homeownership. For people who’ve been renting in Chicago because buying felt out of reach, the Twin Cities opens doors. Entry-level homes exist here. First-time buyer programs are active. The market moves but doesn’t feel impossible.
A real outdoor lifestyle. The lakes, trails, and parks in the Twin Cities metro are woven into everyday life in a way that’s different from a city built around a single lakefront corridor.
A smaller big city feel. Minneapolis and St. Paul have big-city amenities — professional sports teams, a world-class music and arts scene, James Beard-nominated restaurants — without the scale that makes Chicago feel overwhelming to navigate on a daily basis.
🏙️ Finding Your Neighborhood
If you’re coming from Chicago, here’s a rough guide to where you might land:
Lincoln Park / Lakeview types: Look at Linden Hills, Kenwood, or Lowry Hill in Minneapolis. Walkable, beautiful homes, strong neighborhood character.
Logan Square / Wicker Park energy: Northeast Minneapolis is your scene. Creative, food-focused, walkable, with a mix of longtime residents and newer arrivals.
North Shore suburbs: Eden Prairie, Minnetonka, Edina, and Wayzata have the same feel — great schools, well-maintained neighborhoods, easy highway access, higher price points.
Affordable but up-and-coming: Brooklyn Center, Richfield, and parts of St. Paul offer real value with proximity to the city.
Thinking About Making the Move?
Find your place in the Twin Cities
Keep Exploring Your Move
Moving from one of these states?
Checkout our other blogs with specific insights to your current state, from lifestyle differences to housing costs and day-to-day living in the Twin Cities.
MKT Real Estate Advisors is a top-producing real estate team with Coldwell Banker Realty, dedicated to helping clients buy, sell, and invest with confidence.
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