There are many reasons why Minnesota is often considered one of the best states in the country to live in. It also has a highly educated workforce, and its cities are consistently ranked as some of the best places to live in the country.
Minnesota is home to a number of Fortune 500 companies, and its economy is strong and diversified. The state has a lot to offer in terms of recreation and natural beauty, from its sprawling lakes to its majestic forests.
Most people would agree that the cost of living in Minnesota is relatively high. But what exactly makes some of the state’s cities so expensive? There are a few factors that drive up the cost of living in Minnesota.
The state has a relatively low unemployment rate, which means that there is more competition for jobs. This in turn drives up wages. The cost of housing in Minnesota is relatively high. This is due in part to strict zoning laws, which limit the supply of available housing.
As a result, demand is high and prices continue to rise. The cost of living in Minnesota is also affected by the state’s tax laws. Minnesota has some of the highest taxes in the country, which can add up quickly.
Related: The 10 Most Expensive Restaurants in Minnesota
Most Expensive Places to Live in Minnesota
1. Minnetonka Beach
Median Home Price: $1.8M
With miles of pristine shoreline, breathtaking views, and luxurious amenities, it’s no wonder that Minnetonka Beach is one of the most desirable places to live. There’s something for everyone, from spectacular mansions to quaint cottages, but the price tag can be a bit daunting.
So what makes Minnetonka Beach so expensive? In short, it’s the perfect combination of location, climate, and lifestyle. Located just outside of Minneapolis, Minnetonka Beach offers easy access to all the city has to offer while still providing a peaceful and scenic escape from the hustle and bustle.
The warm summers and mild winters make it an ideal spot for year-round recreation, and the Active community means there’s always something to do.
2. Greenwood
Median Home Price: $1.4M
It’s known for its thriving arts scene and beautiful scenery, but it also has a reputation for being a hard city to live in. The city has several things going for it: great schools, access to natural resources like lakes and rivers, and a low crime rate.
But there are also plenty of downsides to living there: high housing costs, long commute times, and high taxes are just some of them.
The city is located in the heart of the Twin Cities metro area. This means that it has access to all the amenities and opportunities that come with being part of a large metropolitan area.
The downside to this is that competition for housing and other resources are fierce, driving up prices. Greenwood is a relatively affluent city. This means that there is a high demand for goods and services, which drives up prices even further.
The city has a low crime rate and an excellent public school system. This makes Greenwood an attractive place to live, further increasing the cost of living.
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3. Woodland
Median Home Price: $1.4M
Woodland is one of the most expensive towns in Minnesota with strong, healthy families, a low crime rate, and a thriving downtown. As we continue to grow and attract new businesses, you’ll see that Woodland is becoming a place to live and work.
The community has grown rapidly over the past few years, but it still maintains its small-town feel. The downtown area has several shops and restaurants that allow you to spend time shopping or eating at local establishments without having to drive anywhere else.
There are plenty of things to do in Woodland besides shopping and eating out each day though! There are many different parks throughout the city that offer everything from baseball fields to playgrounds for children of all ages.
There are also several golf courses where you can play some pretty good golf while enjoying some beautiful views of the surrounding countryside!
4. Orono
Median Home Price: $1.1M
Orono is a city in Minnesota situated on the banks of Lake Minnetonka. The city is home to a number of notable sights, including the Covered Bridge, the Orono Public Library, and the Orono Historical Society Museum.
Outdoor enthusiasts will enjoy hiking and biking on the city’s trails or taking a stroll through one of its many parks. Orono is also home to a number of restaurants and cafes, as well as a variety of shops.
Orono is a great place to visit if you’re looking for something different from your typical tourist destination. It’s small enough that you can walk around without getting lost in traffic but still big enough that there’s plenty to do when you’re there.
With all its natural beauty and friendly people, it’s easy to see why this charming town has become such a popular destination for visitors from around the world!
Related: The 10 Most Expensive Towns in Massachusetts
5. Sunfish Lake
Median Home Price: $1,1M
Sunfish Lake has a number of appealing features that make it an attractive place to live. The city is home to a number of parks and green spaces, including Sunfish Lake Park, which offers residents a chance to enjoy the outdoors.
Sunfish Lake is home to a number of shops and restaurants, as well as a variety of services. The city also has a low crime rate and is served by a number of excellent schools.
So what makes Sunfish Lake so pricey? The median home price is a whopping $1.1 million. That’s more than twice the median home price in the rest of Minnesota.
But it’s not just real estate that comes at a premium in this town. The cost of living is also sky-high, thanks to the high-end shops and restaurants that line the streets.
6. Medicine Lake
Median Home Price: $997K
Medicine Lake is a small town located on the shores of Medicine Lake, a beautiful body of water that is popular for swimming, fishing, and boating. Medicine Lake is also home to a variety of businesses, including several restaurants, cafes, shops, and art galleries.
Visitors to Medicine Lake will find plenty of things to do, from exploring the town’s many parks and trails to enjoying the lake’s pristine waters.
The city of Medicine Lake is surrounded by beautiful farmland and lush forests. The town’s main attraction is its waterfront park area which features over 25 acres of lakeside property along with picnic areas and walking paths throughout.
The park also offers access to the lake itself where visitors can swim or fish if they wish. Other popular attractions include the Medicine Lake Golf Course which offers 18 holes of golf as well as tennis courts and baseball diamonds.
Medicine Lake State Park is located in this community and provides visitors with an opportunity to explore nature on their own terms by hiking through forests or relaxing at one of several lakeside pavilions where they can enjoy lunch or dinner while watching birds soar overhead or observe deer graze in the distance.
Related: The 13 Most Expensive Cities to Live in California
7. Tonka Bay
Median Home Price: $991K
Situated on the shores of Lake Minnetonka, Tonka Bay is a small city in Minnesota with just over 1,466 (2020) people. Though it is only a short drive from the Twin Cities, Tonka Bay feels like a world away from the hustle and bustle of urban life.
The city is home to beautiful parks and trails, as well as a marina where residents can enjoy outdoor activities like swimming, fishing, and boating. Tonka Bay is also home to a number of small businesses and unique shops. From antique stores to art galleries, there is something for everyone in this charming city.
The city’s main attraction is its waterfront park system. The largest park in town features more than 10 miles of trails that connect to other parks throughout the area.
This beautiful space is full of trees and flowers, making it an ideal location for picnics or hiking during warmer months. Visitors will also find two playgrounds along with plenty of places to relax with family or friends after spending some time outdoors.
The Tonka Bay area also has plenty of smaller parks nearby for visitors who may not want to hike for long distances but still want to enjoy nature’s beauty close by their homes or apartments.
8. North Oaks
Median Home Price: $868K
The town is known for its beautiful scenery and friendly residents. North Oaks is situated on the banks of the St. Croix River, and it boasts miles of hiking and biking trails.
The town also has several parks, including a community garden and an amphitheater. North Oaks is also home to several excellent schools, including a top-ranked elementary school.
North Oaks has always been known for its close-knit community and friendly neighbors. The town has been home to many different generations of families over the years — some who have lived there for decades and others who have only recently moved in — but everyone knows everyone else in the community by name.
This sense of community extends beyond just knowing each other’s names; it’s also evident when someone needs help with something outside of their own homes or lives that they don’t need to ask anyone else first because they know that someone else will be willing to help them out without hesitation.
Related: The 10 Most Expensive Places to Live in Washington State
9. Deephaven
Median Home Price: $918K
Deephaven is a small city located in Hennepin County, Minnesota. The city is situated on the shores of Lake Minnetonka and is a popular destination for boating and fishing.
Deephaven is also home to a number of parks and trails, making it a great place to explore the outdoors. The city is known for its quaint small-town feel, and its residents are friendly and welcoming.
Deephaven’s waterfront area features many restaurants and shops along with quaint bed & breakfasts and vacation homes. The city’s downtown area has many historic buildings that are open for visitors to tour. Visitors can also enjoy Deephaven’s annual Fourth of July parade or stroll through town during fall foliage season.
The community has a strong arts program with several galleries, museums, performing arts centers, and art festivals throughout the year.
10. Dellwood
Median Home Price: $895K
Dellwood is a small city located in Minnesota, just north of Saint Paul. Dellwood is a close-knit community with a strong sense of civic pride. The city offers residents a suburban lifestyle, with plenty of green space and parks for families to enjoy.
Dellwood is also home to several businesses and schools, making it a convenient place to live. Despite its small size, Dellwood has a lot to offer residents and visitors alike.
Dellwood’s downtown is home to many unique shops and restaurants, including the Dellwood Farmers Market, which runs every Saturday from May through November.
The market features fresh produce and local products as well as arts and crafts vendors who sell their wares at affordable prices. The market also hosts live music events throughout the summer months.