Clara City, MN
Population 1,497 · Minnesota
About Clara City, MN
Clara City is a small town located in Minnesota with a population of 1,497 residents according to the latest US Census Bureau American Community Survey data. The median household income is $58,431 per year, which is 22% below the national median of $75,149. The median age of 36.5 years is close to the US median age of 38.9 years.
Housing Market Overview
The housing market in Clara City features a median home value of $116,500, which is 52% below the national median of $244,900. This makes Clara City one of the more affordable markets in the country, potentially attractive for first-time homebuyers. Median monthly rent is $1,063, 9% below the national average of $1,163/month. Of the 677 total housing units, 66% are owner-occupied (392 units) and 34% are renter-occupied (201 units). The balanced mix of owners and renters indicates a diverse housing market.
Economy & Employment
The local economy in Clara City shows an unemployment rate of 4.0%, which is near the national rate of 3.7%. The poverty rate stands at 9.8%, below the national average of 12.4%, reflecting generally favorable economic conditions. Workers in Clara City have an average one-way commute time of 15.8 minutes, one of the shorter commutes in the region.
Education & Demographics
14.0% of Clara City residents aged 25 and older hold a bachelor's degree or higher, compared to the national average of 33.7%. The lower educational attainment rate may reflect the area's industry mix, with more employment in trades, manufacturing, or agricultural sectors. The community's demographic composition includes 9.6% White, 3.1% Hispanic or Latino, 0.6% Black or African American, and 0.0% Asian residents, with 4.8% of the population being foreign-born.
Cost of Living in Clara City, MN
Compared to national averages, Clara City has a median household income of $58,431 (22% below the national median of $75,149). Home values average $116,500, which is 52% below the national median. Monthly rent at $1,063 is 9% below the US average of $1,163. Within Minnesota, Clara City's income is 21% below the state average of $74,221, and home values are 43% below the state median of $204,472.
Why Live in Clara City, MN?
Clara City offers affordable housing with a median home value of $116,500, below the US average of $244,900, and rent that’s lower than the national average at $1,063/month, and a low poverty rate of 9.8%, better than the national average. Additionally, the city features short commute times averaging just 15.8 minutes.
Potential considerations include median household income ($58,431) that falls below the national average. However, Clara City’s smaller community size offers a quieter lifestyle and tight-knit neighborhoods.
Clara City has a population of 1,497 with a median age of 36.5 years. Compare Clara City with other cities to see how it stacks up, or explore all cities in Minnesota.
Similar Cities Near Clara City
Cities in Minnesota with a similar population size.
| City | Population | Median Income | Home Value | |
|---|---|---|---|---|
| Avon | 1,493 | $90,987 | $240,400 | Compare |
| Red Lake | 1,506 | $55,092 | $136,000 | Compare |
| Madison | 1,507 | $56,435 | $104,600 | Compare |
| Lakeland | 1,510 | $101,339 | $357,700 | Compare |
| Minneota | 1,531 | $72,396 | $158,100 | Compare |
| Dawson | 1,441 | $70,286 | $118,800 | Compare |
| Canby | 1,563 | $58,839 | $131,800 | Compare |
| Babbitt | 1,420 | $54,318 | $96,000 | Compare |
Demographics
Racial & Ethnic Composition
Economy & Education
Housing
Other Cities in Minnesota
Data source: US Census Bureau ACS 5-Year Estimates. Last updated: 2026-04-05.
Compare Clara City With Other Cities
Frequently Asked Questions about Clara City
What is the population of Clara City, MN?
The population of Clara City, MN is 1,497 according to the latest US Census Bureau American Community Survey estimates. This makes it a small town in Minnesota.
What is the median household income in Clara City?
The median household income in Clara City, MN is $58,431 per year, which is 22% below the national median of $75,149.
What is the median home value in Clara City?
The median home value in Clara City, MN is $116,500, which is 52% below the national median of $244,900. The majority of housing units are owner-occupied.
What is the average rent in Clara City?
The median monthly rent in Clara City, MN is $1,063, which is 9% below the national average of $1,163/month.
What is the unemployment rate in Clara City?
The unemployment rate in Clara City, MN is 4.0%, compared to the national average of 3.7%. Job seekers may want to research the dominant industries in the area.
Is Clara City, MN a good place to live?
Clara City offers a moderate cost of living, affordable housing, and growing employment opportunities. With a population of 1,497 and a median age of 36.5, the city appeals to a broad range of residents.
How educated is Clara City, MN?
14.0% of residents in Clara City aged 25 and older hold a bachelor's degree or higher, compared to the national average of 33.7%. The educational profile reflects the area's industry mix and employment landscape.
What is the cost of living in Clara City?
Key cost-of-living indicators for Clara City, MN: median home value is $116,500 (52% below national), median rent is $1,063/month, and median household income is $58,431. The home-value-to-income ratio is 2.0x, indicating relatively affordable housing relative to local incomes.
What is the poverty rate in Clara City?
The poverty rate in Clara City, MN is 9.8%, compared to the national average of 12.4%. This below-average poverty rate reflects generally favorable economic conditions in the community.
How diverse is Clara City, MN?
Clara City's population is 9.6% White, 3.1% Hispanic or Latino, 0.6% Black or African American, 0.0% Asian, and 0.7% two or more races. 4.8% of residents are foreign-born.