Cost of Living in Eagan, MN

An Overview of Cost of Living in Eagan, MN

Are you thinking about relocating, but curious about the potential cost of living in Eagan? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Eagan stands at 114, making it 14% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

Housing costs are a major factor in the Eagan cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 53.1% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Is Eagan Affordable?

Is Eagan affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Eagan, for instance, where the median home price falls 61.7% higher than the national average, and monthly rent rates are 33% higher than usual. Additionally, median income levels contribute to the equation, with Eagan flaunting a median household income of $93,332, 68.7% higher than the national norm.

What Factors can Influence the Cost of Living in Eagan?

Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Eagan, the standard sales tax rate starts at 6.875%, and the income tax rates commence at 5.35%.

Transportation: If public transportation is limited or not available, residents may need to own and maintain vehicles, which can add to the cost of living. Gas, insurance, regular maintenance and potentially lease or finance payments will all need to be paid on a monthly basis. In Eagan, the transportation index is 2.1% lower than the national average.

Where is the Data From?

The Eagan cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.