Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Minnesota and Pennsylvania. Updated for 2026.
Minnesota wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. However, Pennsylvania has a lower total cost when combining home price, closing costs, and insurance. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Pennsylvania saves you approximately $387/month ($4,644/year) compared to Minnesota, based on median home prices with identical loan terms.
Home prices in Minnesota and Pennsylvania are relatively close, with only a 16% difference ($55K). At similar price points, your decision should focus on the other cost factors: property taxes, insurance, closing costs, and the overall quality of life each state offers. Small percentage differences in tax rates compound over decades of homeownership.
Property tax rates are similar in both states (Minnesota: 1.12%, Pennsylvania: 1.36%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.
Insurance costs favor Pennsylvania at $1,400/year versus $2,100/year in Minnesota, a difference of $700 annually. While not the largest cost factor, this adds up to over $7K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Both states offer down payment assistance for first-time buyers. Minnesota's Minnesota Housing Start Up provides Up to $18,000 deferred loan, while Pennsylvania's PHFA Keystone Advantage offers Up to $6,000 DPA. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: Minnesota and Pennsylvania are broadly similar in housing costs, with only $387/month separating them in total PITI payments. In cases like this, your decision should be driven by lifestyle preferences — job opportunities, climate, proximity to family, and quality of life — rather than pure cost savings. Either state offers a reasonable path to homeownership.