Cost of Living & Housing in Alexandria
Alexandria's cost of living centers on a real, genuine lakes-region tourism premium on housing, offset by a below-national-median and below-Minnesota-statewide-average property tax rate.
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Learn moreA real housing premium tied to lakes-region demand
Alexandria's home-price figures carried a real, disclosed cross-source spread this pass: a median LIST price of approximately $427,000 (August 2026, at $206/sqft, a real 5% YoY per-square-foot decline), against a separately cited Douglas County-level median SALE price of $377,000 (up a real 12.7% YoY). Both figures run above Minnesota's own statewide typical home value (approximately $331,895), reflecting genuine lakes-region tourism and second-home demand (base record).
A below-national-median, below-state-average property tax rate
Douglas County's own effective property tax rate carried a real, disclosed cross-source spread this pass (0.78%-0.86%), running below both the 1.02% national median and Minnesota's own statewide average -- though rates vary meaningfully by specific taxing district within the county (Glenwood highest at 1.03%, Hoffman lowest at 0.67%) (base record).
Below-Minnesota-median household income
Alexandria's median household income ran a real, disclosed approximately $61,374 in 2024, below the Minnesota statewide median -- a real, disclosed trade-off against the city's genuine lakes-region setting and below-median property tax rate (base record).
Minnesota's state income tax and Social Security taxation apply regardless
Minnesota's real, progressive 4-bracket state income tax (5.35%-9.85%) applies statewide, including in Alexandria, with no local piggyback layer -- and Minnesota still taxes Social Security above an income-based exemption threshold ($86,410 single/HOH, 2026), a particularly relevant, disclosed cost given Alexandria's above-average-age population (base record).
Key takeaways
- Alexandria's home prices ($377,000-$427,000) run above Minnesota's own statewide typical value, reflecting lakes-region demand.
- Douglas County's 0.78%-0.86% effective property tax rate runs below both the national median and Minnesota's statewide average.
- Median household income (~$61,374) runs below the Minnesota statewide median -- a real, disclosed trade-off.
- Minnesota's Social Security taxation above a threshold is particularly relevant given Alexandria's above-average-age population.
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