Comparing Eagan and Minneapolis: Which Is Cheaper?

Eagan, MN vs. Minneapolis, MN: Cost of Living Comparison (2025)

When deciding where to live in the Twin Cities metro area, many people find themselves comparing Eagan and Minneapolis. While only 15 miles apart, these two cities offer very different lifestyles. Eagan provides more affordable housing and a quiet suburban feel that appeals to families. Minneapolis boasts a vibrant urban culture with walkable neighborhoods and ample public transit, attracting many young professionals.

But in 2025, with both home prices and rents on the rise, cost of living has become the central factor for most people choosing between Eagan and Minneapolis. To help you decide which city best fits your budget, let’s take a detailed look at housing costs, utilities, groceries, taxes, and other key living expenses in each location.

Consider the fictional Smith family, a couple with two young children currently renting in Minneapolis. With their lease up for renewal and rent set to increase, they’re debating a move to Eagan for more affordable housing and space to grow. “We love the energy of Minneapolis, but it’s getting too expensive,” says Sarah Smith. “An extra bedroom and a yard in Eagan is really appealing. We just need to crunch the numbers and see if the savings are worth the lifestyle change.”

1. Housing Costs

The most significant cost difference between Eagan and Minneapolis is housing. In 2025, the median home price in Eagan is $450,000, while Minneapolis homes average $550,000. For the Smiths, who eventually want to buy, that $100K difference could mean more house for their budget in the suburbs.

Renting is also more affordable in Eagan, with a typical two-bedroom apartment going for $1,800 per month compared to $2,200 in Minneapolis. However, rentals are harder to find in Eagan, where 70% of households are owner-occupied. The Smiths may need to act fast to secure a suburban rental.

Minneapolis offers more diverse housing options, from new luxury apartments to classic brownstones, with prices varying significantly by neighborhood. Trendy North Loop is the priciest, while pockets of Northeast and Powderhorn remain relatively affordable. In Eagan, single-family homes dominate, with some new apartment complexes near retail areas commanding top dollar.

For a family like the Smiths looking to maximize space on a budget, Eagan offers clear savings. They could rent a 3BR house for less than a 2BR Minneapolis apartment. Young singles and couples may prefer paying more for a smaller space with urban amenities just outside the door.

🏆 Winner: Eagan. Lower home prices and rents give more bang for the buck, especially for families.

2. Utilities and Energy Costs

Utility costs are similar in Eagan and Minneapolis, with both cities served by Xcel Energy and CenterPoint Energy. In 2025, the average monthly energy bill for a 2BR apartment is $120 in Eagan and $140 in Minneapolis, due to slightly larger unit sizes in the suburbs.

Houses have higher utility costs, averaging $180 per month in Eagan and $200 in Minneapolis for a 3BR. Winter heating adds about $50/month in both cities. Families can expect water/sewer/trash fees around $60/month in Eagan and $80/month in Minneapolis.

Both cities offer energy-saving programs, like Xcel’s time-of-use rates that are cheaper on nights and weekends. The Smiths could save by running the dishwasher and doing laundry during off-peak hours in either location.

🏆 Winner: Eagan. While the difference is small, Eagan utility bills tend to be 10-15% lower across housing types.

3. Groceries and Daily Expenses

Grocery costs are very comparable between Eagan and Minneapolis, with major chains like Cub Foods, Aldi, and Target well-represented in both cities. In 2025, a gallon of milk averages $4.20 in Eagan and $4.50 in Minneapolis, with similar 5-10% differences for other staples.

Eating out is pricier in Minneapolis, where a meal for two at a mid-range restaurant easily tops $80 with tax and tip. In Eagan, a similar casual dinner runs about $60. Of course, Minneapolis offers an unbeatable range of award-winning restaurants, while Eagan’s strength is affordable family-friendly chains.

For a busy family like the Smiths, seemingly minor costs like morning coffee and after-school snacks add up. A latte in Minneapolis averages $5.50 compared to $4.50 in Eagan. Likewise, a scoop of ice cream in Minneapolis is $5, while $4 in Eagan. Spread across multiple family members and daily occurrences, the difference is multiplied.

🏆 Winner: Eagan. Suburban life is 10-20% cheaper for groceries and family-oriented dining out.

4. Taxes and Fees

One financial factor favoring Minneapolis is property taxes. The city’s 2025 property tax rate is 1.2%, compared to 1.4% in Eagan. For a $500K home, that’s a difference of $1,000 per year. However, Eagan’s lower home prices still yield a lower total tax bill for many.

Sales tax is identical, with both cities charging the state rate of 6.875% in 2025. Vehicle registration fees are also the same, starting at $20 and increasing with car value.

Eagan homeowners may face some additional costs like private trash collection (about $30/month) and homeowners association fees in certain neighborhoods (up to $200/month). Minneapolis residents typically pay for trash through city-provided services, and HOAs are less common.

🏆 Winner: Minneapolis. Lower property tax rates are a long-term advantage for homeowners.

5. Cost Summary Table

For a family like the Smiths renting a 3BR house or apartment, living in Eagan would cost around $5,065 per month, while Minneapolis would be $5,730. That’s a difference of $665 per month or nearly $8,000 per year. Even with Minneapolis’ lower property taxes long-term, Eagan delivers substantially lower monthly expenses due to more affordable housing, utilities, and daily costs.

Of course, the Smiths will have to balance those savings against Eagan’s higher transportation costs from less walkability and transit. They’ll likely need two cars in the suburbs, spending around $600/month on gas and maintenance, compared to $400/month if relying more on public transportation and shorter drives in Minneapolis.

6. Lifestyle Fit

For many, the choice between Eagan and Minneapolis comes down to lifestyle fit, not just cost. Eagan offers a quieter pace, with top-notch schools, safe streets, and ample parks and trails. It’s a great place to raise a family, with a 20-minute drive to the Mall of America and MSP Airport.

Minneapolis provides the energy and amenities of urban living, from world-class museums and theaters to a booming craft food and drink scene. Over 200 miles of bike lanes and an extensive bus and light rail system make it easy to live car-free. The city also boasts a more diverse population and progressive vibe.

Walkability is a key consideration. Most errands require a car in suburban Eagan, while many Minneapolis neighborhoods score high on walkability, with restaurants, coffee shops, and grocery stores steps from home. The savings of Eagan’s lower cost of living are somewhat offset by the need to drive more.

Weather is similar between the two cities, with snowy winters and humid summers. However, the urban heat island effect means Minneapolis tends to be a few degrees warmer, for better or worse. Eagan gets about 10% more snow, something to consider for commuters.

For the Smith family, Eagan’s kid-friendly vibe, strong sense of community, and lower crime rate make it an attractive choice, especially with the cost savings of using a suburban moving company. But they’d undoubtedly miss the diversity and dynamism of Minneapolis. It’s a highly personal decision.

7. FAQs

Is it cheaper to raise a family in Eagan or Minneapolis?
Eagan is typically more affordable for families, with lower housing, grocery, and child care costs. However, Minneapolis’ walkability and transit can help reduce transportation expenses, especially if you can live with one or no car.

Which city has more affordable health care?
Costs for routine doctor visits and medications are similar between Eagan and Minneapolis. However, some specialized services and health insurance plans may be cheaper in the suburbs.

Do property taxes make Eagan more expensive long-term?
While Eagan has higher property tax rates, 1.4% vs 1.2% in Minneapolis, the suburb’s lower home prices still often result in a smaller total tax bill. Long-term affordability depends on your specific home value and appreciation.

How do commute times compare?
Eagan residents typically face longer commutes, with an average drive time of 25 minutes vs 20 minutes in Minneapolis. However, this varies greatly by specific home and work locations. Some Minneapolis bus/train commutes are longer than driving from Eagan.

Which city is better for remote workers?
Both Eagan and Minneapolis offer ample coffee shops and co-working spaces for remote workers. Eagan’s larger homes provide more space for a dedicated home office, while Minneapolis’ density means more lunch and errand options within walking distance.

Are utility costs really that different?
Utility costs are quite comparable, with Eagan bills averaging about 10-15% less due to smaller apartment sizes and lower water/sewer/trash fees. The difference is more pronounced for larger homes. Energy-saving habits make a bigger impact than location.

8. Conclusion

Choosing between Eagan and Minneapolis is a blend of budget and lifestyle. For a family like the Smiths, Eagan’s lower cost of living is a major draw, with potential savings of $600+ per month on housing and daily expenses. That extra cash could fund family vacations, college savings, or even an earlier retirement.

However, the savings come with tradeoffs, like longer commutes, less walkability, and a more homogeneous community. For young professionals or those who thrive on urban energy, Minneapolis’ higher costs may be worth it for the abundant amenities, car-free living, and diverse culture.

Ultimately, the right choice depends on your family’s priorities and stage of life. But in a 2025 world of ever-rising costs, there’s no denying Eagan’s affordability advantage. If you can adapt to suburban living, the savings are substantial. To see exactly how your budget would fare in Eagan, check out our full 2025 cost of living breakdown.