F
22%
Overall NAT. AVG.
5%
Goods & Services NAT. AVG.
84%
Housing NAT. AVG.
Search Homes for Sale
Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Minnetonka Minnesota National
Cost of living12299100
Goods & Services95100100
Groceries9798100
Health care101109100
Housing184100100
Transportation9797100
Utilities9593100

An Overview of Cost of Living in Minnetonka, MN

The cost of living in Minnetonka affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Minnetonka is 122, which is 22% higher than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

If you prioritize affordability when seeking a new place to live, Minnetonka may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Minnetonka falls into this category, which may not align with your preferences for a budget-friendly living environment.

Housing costs make up a big chunk of the cost of living in Minnetonka, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 83.6% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

Is Minnetonka Affordable?

Is Minnetonka an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Minnetonka, the median home price is 96% higher than what most folks pay across the country, and monthly rent prices are 54.6% higher than the usual rates. Income levels in Minnetonka come in at $100,363, which is 81.4% higher than the national average.

What Factors can Influence the Cost of Living in Minnetonka?

Healthcare: Healthcare expenses and insurance premiums can vary significantly depending on the specific city or state. Factors such as accessibility to healthcare facilities, out-of-pocket expenses for doctor's visits, dental care expenses, prescription costs and specialized medical care fees can all influence the overall cost of living. In Minnetonka, healthcare costs are 0.6% higher than the national average.

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Minnetonka, the housing index stands at 83.6% higher than the national average.

Groceries: Grocery prices have seen substantial hikes in the last 2-3 years, with some markets witnessing food cost increases of over 20% during this period. Conversely, certain markets have experienced only moderate upticks. These variations in food expenses can have a substantial impact on the overall cost of living in any locality. In Minnetonka, the groceries index is 2.6% lower than the national average.

Where is the Data From?

The Minnetonka cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

New Real Estate Listings in Minnetonka Area
Search Homes for Sale in Minnetonka, MN

Cost Of Living Quick Facts

  • The cost of living in Minnetonka is 24% higher than the Minnesota average
  • The cost of living in Minnetonka is 22% higher than the national average
  • Minnetonka housing is 84% higher than the national average
  • Minnesota general sales tax is 35% higher than the national average
  • Minnesota state income tax is 106% higher than the national average

Most Affordable Places to Live in and Around Minnetonka

See all the best places to live around Minnetonka

Compare Minnetonka, MN Cost of Living

      vs
      How would you rate the cost of living in Minnetonka?
      Write a review to give others more information about this area.
      Is the cost of living increasing or decreasing in Minnetonka?
      Write a review to give others more information about this area.
      See all Minnetonka poll results

      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$121,546$10,129$2,836$3,647
      Renters$65,500$5,458$1,528$1,965
      The percentage of monthly income spent on housing related expenses can help predict the affordability of housing in Minnetonka, MN, as well as what the overall cost of living might be. Generally, a good rule to follow is that the debt-to-income (DTI) level you want to maintain is 28 percent or less of your income on your rent or mortgage payments and not more than 36 percent of income on all expenses and debts. In Minnetonka, homeowners have a median income of $121,546. Using that number, a maximum of $2,836 per month should be allocated to housing expenses. For those who are renting instead of owning, the median income is $65,500, which means there is a maximum of $1,528 to be spent on the costs of renting a home or apartment.

      Minnesota Sales Tax

      State General Sales Tax With Max Surtax
      Minnesota 6.875% 7.875%

      Minnesota Income Tax

      State Income Tax (Low) Income Tax (High)
      Minnesota 5.35% 9.85%

      Goods & Services

      Item Minnetonka National avg. Difference
      Haircut $25.86$24.266.6%
      Beauty Salon $37.00$45.5618.8%
      Toothpaste $3.62$3.702.2%
      Shampoo $1.50$1.2816.9%
      Movie $11.32$12.136.7%
      Bowling $25.68$18.0042.6%

      Groceries

      Item Minnetonka National avg. Difference
      Ground Beef $5.75$5.841.4%
      Fried Chicken $1.40$1.5711.2%
      Milk $4.60$4.671.5%
      Potatoes $4.76$4.933.5%
      Pizza $13.00$12.097.6%
      Beer $9.44$10.419.3%

      Health Care

      Item Minnetonka National avg. Difference
      Optometrist $112.72$125.6810.3%
      Doctor $164.15$135.7820.9%
      Dentist $95.01$113.2916.1%
      Ibuprofen $10.71$10.650.6%
      Lipitor $499.35$468.606.6%

      Housing

      Item Minnetonka National avg. Difference
      Home Price $362,100.00$184,700.0096.0%
      Avg. Mortgage Payment $1,983.77$2,346.6915.5%
      Apartment Rent $1,467.00$949.0054.6%

      Transportation

      Item Minnetonka National avg. Difference
      Gasoline $3.32$3.464.0%
      Tire Balancing $59.91$59.920.0%

      Utilities

      Item Minnetonka National avg. Difference
      All Electricity $180.11$193.997.2%
      Phone $187.59$192.252.4%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Hilltop, MN1,0077722.8%
      St. Anthony city (Stearns County), MN1068019.7%
      Columbia Heights, MN20,247991.3%
      Rockford, MN4,481991.0%
      Brooklyn Center, MN30,755990.7%
      Minnetonka, MN53,76012222.4%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Novato, CA53,78119797.5%
      Leesburg, VA53,73114242.2%
      Apple Valley, MN53,72811211.7%
      Aloha, OR53,72412929.3%
      Kingsport, TN53,6998812.0%
      Minnetonka, MN53,76012222.4%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.