Cost of Living in North Dakota

(Last Updated – November 4, 2024)

Those who know North Dakota well know that it’s a hidden gem. No other state can boast an official nickname like the Peace Garden State — a sweetness compounded by the fact that North Dakota is the nation’s leading producer of honey. North Dakota stands apart when it comes to cost of living, too. This northern Great Plains state offers affordability coupled with a stunning rural landscape and a few metropolitan options, like Fargo and Bismarck. Below, a breakdown of specific costs related to living in North Dakota for your consideration.

What’s the Average Cost of Living in North Dakota?

Average Cost of Living in North Dakota: $52,631 per year

According to the Missouri Economic Research and Information Center (MERIC) , which publishes a quarterly cost-of-living index by state, the overall cost of living in North Dakota is just 91.3% of the U.S. average as of the second quarter of 2024.

While most of the Midwestern and Great Plains states enjoy a lower-than-average cost of living, North Dakota is less expensive than many of its neighbors, including Montana (where the cost of living is 94.7% of the U.S. average) and Minnesota (95.3%). South Dakota is just a smidge more affordable at 91.2% of the U.S. average.

The trend can also be seen in individual expense categories as outlined below. The government’s Bureau of Economic Analysis (BEA) reports that the average cost of living in North Dakota is $52,631. Compared to the U.S. averages, the BEA analysis shows that North Dakotans spend substantially less on housing, food, and energy costs — though the state’s average yearly health care cost is about $2,000 higher than the national figure.

Housing Costs in North Dakota

Average Housing Costs in North Dakota: $696 to $1,653 per month

The typical home value in North Dakota is about $265,368. Translation: Those looking to become first-time homeowners might do well to turn their attention to North Dakota. It’s a lot easier to save a down payment for a home that’s far less than the national average home value of around $360,000.

The state is equipped with 380,841 housing units, per the latest Census data, 63.2% of which are owner-occupied. That means about 140,149 rental units are available for those who aren’t yet ready to take out a .

Better yet, those rentals offer substantially more affordable rates than the U.S. average, where the median gross rent is $1,300. Here’s the breakdown based on home size:

•  Median monthly mortgage cost: $1,653

•  Studio rent: $696

•  1-bedroom rent: $725

•  2-bedroom rent: $870

•  3-bedroom rent: $1,138

•  4-bedroom rent: $1,182

•  5-bedroom rent: $1,272

•  Median gross rent: $863

While, of course, your specific housing costs will vary depending on where in the state you live, even in Bismarck, the state’s capital, average home prices substantially undercut the national median. Here are the costs you can expect in eight major North Dakota cities, whether you’re buying your first home or looking for a retirement spot.

Utility Costs in North Dakota

Average Utility Costs in North Dakota: $299 per month

Once you’ve got the housing bill paid, it’s time to make sure the lights are on and the water is flowing. Here’s a breakdown of the average monthly utilities bill in North Dakota — though of course your mileage will vary depending on the size of your home, the number of people in your household, and your usage.

Groceries & Food

Average Grocery & Food Costs in North Dakota: $306 per person, per month

North Dakotans spend an average of $3,676 each year on food, which breaks down to about $306 per month, per person. That means a family of four could expect to spend about $1,225 per month on groceries (with some wiggle room depending on the ages and appetites of your loved ones).

Of course, individual prices do vary a bit by city. Below, find the grocery item index costs for four major North Dakota population centers. (Note: Even Fargo, the state’s most metropolitan city with a population of over 133,000, enjoys a lower-than-national-average food cost.)

Transportation

Average Transportation Costs in North Dakota: $10,769 to $18,044 per year

While North Dakota’s rolling plains and stunning hills are part of what make it such a dreamy place to live, the state’s rural sensibilities can also mean a lot of driving — which means higher transportation costs.

It’s hard to get around under that big, wide-open sky without a vehicle of your own, and costs like gas, insurance, and car payments can quickly add up. Obviously, families with children can expect to spend more than single adults or child-free couples. (Fortunately, all those drives are bound to be scenic.)

Health Care

Average Health Care Costs in North Dakota: $10,494 per person, per year

North Dakotans can expect to spend about $10,494 per person, per year on healthcare related costs. That’s admittedly higher than the U.S. average of $8,331 — perhaps because a less populous state tends to have fewer available care providers, driving up demand and prices.

Recommended: The Different Types of Home Mortgage Loans

Child Care

Average Child Care Costs in North Dakota: $677 to $1,140 or more per child, per month

Ask any parent and they’ll be quick to tell you: Child care isn’t cheap. Parents in North Dakota might expect to spend $819 per month on an in-home nanny, or $1,140 for infant child care in a classroom setting..

That said, these costs are still more affordable than in neighboring states. In Minnesota, for example, the infant classroom cost skyrockets to $1,658 per month, and home-based family child care is $1,239 per child on average. In Montana, too, prices are higher for every type of care except an infant classroom.

Taxes

Highest Marginal Tax Rate in North Dakota: 2.50%

One nice break North Dakotans can expect in April: The state boasts one of the lowest top marginal individual income tax rates in the country, topping out at just 2.50%. (Compare that, for example, to Kansas’s middle-of-the-road 5.70%, or California’s sky-high 13.30%.)

That said, South Dakota does have a one-up on its northerly neighbor in this regard: There’s no state income tax to speak of in Mount Rushmore’s homeland.

Recommended: The Mortgage Preapproval Process

Miscellaneous Costs

According to the BEA, after taking care of basic bills, the average North Dakotan spends about ​​$29,978 per year on other personal costs. Those might include:

•  An annual membership to the International Peace Garden (from which North Dakota gets its official state nickname): $50

•  A standard pass to Theodore Roosevelt National Park, where the whole family can see the buffalo roam: $30 per vehicle, valid for seven consecutive days

•  Admission to the Fargo Air Museum for a family of four (one three-year-old child and one seven-year-old): $40

How Much Money Do You Need to Live Comfortably in North Dakota?

“Comfortable” is a spectrum, and different people have vastly differing ideas about what constitutes a comfortable life. That said, North Dakota ranks eighth in the nation in terms of affordability according to U.S. News & World Report, and 6th for cost of living by state specifically. So it’s certainly one of the best affordable places in the U.S. If you’re going to live in the United States, there aren’t too many other states in which it’s possible to do so more cheaply.

The BEA estimates North Dakotans’ annual total personal expenditures at around $52,631. That means if you earn the national median household income ($75,149), you should be in a fairly good position to live a comfortable life while still affording to save for future goals.

What City Has the Lowest Cost of Living in North Dakota?

While North Dakota as a whole enjoys a lower cost of living than the U.S. average, some cities in the state are even more affordable than others. Of the metropolitan areas studied, our data shows that Minot enjoys the lowest cost of living, with an index of just 90.3% of the U.S. average.

A city of 48,377, Minot is located just northwest of the very center of the state, and is also home to an Air Force Base. As such, it’s also home to the Dakota Territory Air Museum as well as the Roosevelt Zoo, which is home to 90 species and more than 200 individual animals., Affordable picks in North Dakota are below:

Helpful Resources for Future North Dakota Residents