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Spotlight: Southeast Minnesota

Spotlight: Cost of Living, Wages, and Opportunities in SE Minnesota

By Amanda O'Connell
March 2023

Cost of Living in Southeast Minnesota

DEED's Cost of Living data tool offers annual estimates of essential expenses for individuals and families residing in Minnesota and at a more local level. This tool allows for county, regional, and statewide cost-of-living data. Considering that the average family size in Minnesota consists of three individuals, this article will focus on examining the cost-of-living data based on a family comprising two adults, one working full-time, one working part-time, and one child. To obtain accurate and customized information regarding the cost of living based on specific household sizes and employment scenarios, readers can utilize the Cost of Living data tool.

In 2022, the basic needs cost of living in Minnesota rose to approximately $60,720 per year. However, at $52,392 Southeast Minnesota has a lower cost of living, specifically $8,328 less than the state. Among the six regions in Minnesota, the Seven County Minneapolis-St. Paul area has the highest cost of living, reaching $67,716. Southeast Minnesota is ranked as the third most expensive region among the six. On the other end of the spectrum, Southwest Minnesota has the lowest cost of living, estimated at about $47,448 annually (Table 1).

Table 1. Cost of Living Data in Minnesota
Typical Family: 2, Adults (1 working full-time, 1 part-time), 1 child Family Yearly Cost of Living Hourly Wage Required Monthly Costs
Child Care Food Health Care Housing Transportation Other Taxes
Minnesota $60,720 $19.46 $574 $921 $555 $1,216 $886 $517 $391
Seven County Mpls-St. Paul $67,716 $21.70 $780 $936 $572 $1,406 $851 $567 $531
Central Minnesota $57,504 $18.43 $386 $900 $551 $1,143 $993 $495 $324
Southeast Minnesota $52,392 $16.79 $341 $906 $531 $997 $905 $461 $225
Northeast Minnesota $50,952 $16.33 $316 $898 $528 $952 $901 $448 $203
Northwest Minnesota $49,320 $15.81 $275 $905 $530 $863 $948 $428 $161
Southwest Minnesota $47,448 $15.21 $248 $908 $528 $880 $838 $433 $119
Source: DEED Cost of Living Tool

Of the 11 counties in Southeast Minnesota, Dodge County has the highest annual cost of living, amounting to $56,565. Following closely, Rice County ranks as the second highest in terms of cost of living in the region, with an estimated yearly expense of $54,800. Similarly, Olmsted County is the third highest in Southeast Minnesota, with a yearly cost of living of approximately $53,680. The county with the lowest cost of living is Winona County with a yearly cost of living of $48,638 (Table 2).

Table 2. Cost of Living Data in Southeast Minnesota, 2022
Typical Family: 2, Adults (1 working full-time, 1 part-time), 1 child Family Yearly Cost of Living Hourly Wage Required Child Care Food Health Care Housing Transportation Other Taxes
Southeast Minnesota $52,392 $16.79 $341 $906 $531 $997 $905 $461 $225
Dodge County $56,565 $18.13 $339 $893 $528 $1,148 $1,000 $494 $312
Rice County $54,800 $17.56 $339 $895 $528 $1,034 $1,023 $467 $281
Olmsted County $53,680 $17.21 $339 $906 $528 $1,148 $803 $497 $252
Houston County $52,397 $16.79 $339 $903 $528 $976 $932 $455 $233
Goodhue County $52,300 $16.76 $339 $899 $528 $893 $1,030 $434 $235
Fillmore County $51,678 $16.56 $339 $900 $528 $853 $1,038 $424 $225
Mower County $49,749 $15.95 $339 $903 $528 $887 $879 $433 $177
Steele County $49,565 $15.89 $339 $903 $528 $903 $849 $437 $171
Wabasha County $49,503 $15.87 $339 $896 $528 $794 $985 $409 $174
Freeborn County $49,028 $15.71 $339 $903 $528 $833 $902 $420 $161
Winona County $48,638 $15.59 $339 $901 $528 $874 $833 $429 $149
Source: DEED Cost of Living Tool

Wages

Table 3. Southeast Minnesota Hourly Wage Data, 2022 Q3
Industry Median Hourly Wage
Total, All Industries $23.07
Utilities $42.69
Educational Services $30.28
Construction $30.02
Health Care & Social Assistance $29.94
Management of Companies & Enterprises $29.41
Public Administration $27.26
Mining $27.04
Professional & Technical Services $26.10
Finance & Insurance $26.00
Wholesale Trade $25.61
Manufacturing $24.98
Transportation & Warehousing $24.74
Real Estate & Rental & Leasing $20.05
Administrative & Waste Services $19.03
Other Services, Ex. Public Admin $18.99
Agriculture, Forestry, Fishing, & Hunting $16.73
Information $16.37
Retail Trade $16.09
Arts, Entertainment, & Recreation $16.05
Accommodation & Food Services $15.03
Source: Quarterly Employment Demographics

In Southeast Minnesota, the median hourly wage across all occupational groups is $23.07 as indicated in Table 3. Notably, with the exception of Accommodation & Food Services, Arts, Entertainment, & Recreation, Retail Trade, Information, and Agriculture, Forestry, Fishing, & Hunting, all other industries have wages higher than the hourly wage required to meet the basic cost of living in Southeast Minnesota for a family comprising two adults, one working full-time, one working part-time, and one child.

However, it is important to recognize that the estimates for basic needs cost of living only cover essential expenses and necessities. They do not account for discretionary spending on entertainment, savings, retirement contributions, extracurricular events, or personal spending money. These additional factors should be considered when assessing the overall financial situation and budgeting for a family or individual.

Wage Data by Age in Southeast MinnesotaLike industries, wages also differ by age group in Southeast Minnesota. As noted above, in the third quarter of 2022 the overall median hourly wage across all age groups in Southeast Minnesota was $23.07. However, when we examine wage earnings among specific age groups, variations become apparent. The age group consisting of individuals aged 45-54 recorded the highest median wage across all industries, followed by the age group of 55-64. On the other hand, the lowest median wages were observed in individuals aged 19 and younger, as well as those aged 20-24.

Job Vacancies in Southeast Minnesota

DEED's biannual Job Vacancy Survey provides valuable insights into job openings and their corresponding wage offers. While the median hourly wage offer across all occupations in Southeast Minnesota in the second quarter of 2022 was $16.08, note that numerous occupational groups offered a higher median wage. This indicates that within specific industries and professions, there are opportunities for individuals to earn wages both above and below the median. The survey serves as a resource for understanding potential earnings across various occupational groups in the region.

The Computer & Mathematical occupational group offers the highest median hourly wage, with a rate of $33.61. The median hourly wage offer reflects the higher level of experience and education typically required for the 188 available job vacancies within the occupational group. Among these vacancies, 83% require postsecondary education, and an overwhelming 99% require at least one year of work experience. Similarly, Healthcare Practitioners & Technical occupations rank second in terms of a median hourly wage offer at $31.77. Within this category, there are 1,328 job vacancies, with 92% of them requiring postsecondary education and 83% requesting at least one year of work experience.

The Food Preparation & Serving Related occupational group reported the lowest median hourly wage offer, amounting to $13.72. This category had many job vacancies, totaling 4,822 in second quarter 2022. Only 1% of these job vacancies required postsecondary education, indicating that many of the available positions can be started with on-the-job training. The relatively low median wage in this occupational group reflects the nature of the industry, where entry-level and part-time positions are common (Table 4).

Southeast Minnesota Number of Total Vacancies Median Hourly Wage Offer Percent     Part-Time Percent Requiring Postsecondary Education Requiring 1 or More Years of Work Exp. Percent Requiring Certificate or License Job Vacancy Rate
Total, All Occupations 19,304 $16.08 41% 25% 42% 29% 8.2%
Computer & Mathematical 188 $33.61 51% 83% 99% 35% 5.2%
Healthcare Practitioners & Technical 1,328 $31.77 36% 92% 83% 90% 4.1%
Management 333 $30.93 21% 68% 100% 55% 2.8%
Architecture & Engineering 186 $29.46 13% 83% 86% 39% 5.4%
Business & Financial Operations 254 $24.78 29% 78% 92% 38% 2.9%
Life, Physical, & Social Sciences 152 $24.51 65% 95% 96% 30% 9.1%
Community & Social Service 171 $23.79 14% 75% 64% 81% 4.0%
Education, Training, & Library 490 $20.68 38% 90% 77% 87% 3.5%
Legal 50 $20.46 6% 99% 98% 92% 6.1%
Construction & Extraction 924 $19.83 1% 31% 69% 28% 11.5%
Protective Service 100 $19.68 28% 22% 80% 78% 2.8%
Transportation & Material Moving 1,752 $16.97 35% 0% 21% 50% 10.0%
Office & Administrative Support 828 $16.86 36% 17% 60% 16% 3.0%
Arts, Design, Entertainment, & Media 103 $16.24 65% 50% 63% 33% 5.2%
Production 1,593 $15.96 11% 9% 36% 10% 6.8%
Healthcare Support 1,139 $15.40 47% 7% 12% 35% 7.8%
Personal Care & Service 805 $15.13 49% 73% 14% 77% 18.3%
Building, Grounds Cleaning, & Maintenance 945 $15.09 36% 0% 11% 4% 14.3%
Sales & Related 2,248 $14.59 44% 2% 23% 18% 11.7%
Installation, Maintenance, & Repair 739 $14.23 12% 80% 88% 11% 9.0%
Food Preparation & Serving Related 4,822 $13.72 69% 1% 31% 4% 25.9%

DEED's Cost of Living tool is a great resource for residents of Minnesota, providing comprehensive information on the basic cost of living across the state, specific regions, and counties. In Southeast Minnesota a family consisting of two adults, one working full-time, one working part-time, and one child would need to earn an hourly wage of $16.79 to meet the basic needs cost of living. Southeast offers numerous job opportunities and positions that provide wages to meet or exceed that level.

To obtain personalized estimates of the basic needs cost of living for your specific household size and employment scenarios, explore DEED's Cost of Living data tool.

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