by Kristen Carney
Updated: June 20, 2024
The richest city in Minnesota is Minnetonka Beach in Hennepin County with an average household income of $406,901 as of 2022. While exceptionally affluent, Minnetonka Beach only has a population of 536 as of 2023. The richest city in Minnesota with at least 5,000 people is Orono in Hennepin County with an average household income of $325,789 as of 2022 and 8,119 people as of 2023 according to the most current Census data available (citation).
Rank | City | County | Population | Average Income | Median Income |
---|---|---|---|---|---|
1 | Minnetonka Beach | Hennepin | 536 | $406,901 | $250,001 |
2 | Sunfish Lake | Dakota | 515 | $370,022 | $250,001 |
3 | Greenwood | Hennepin | 702 | $363,791 | $197,000 |
4 | Woodland | Hennepin | 382 | $345,551 | $203,750 |
5 | Deephaven | Hennepin | 3,740 | $333,727 | $164,149 |
6 | Orono | Hennepin | 8,119 | $325,789 | $173,209 |
7 | Medina | Hennepin | 7,039 | $316,620 | $202,153 |
8 | North Oaks | Ramsey | 5,163 | $278,274 | $235,714 |
9 | Dellwood | Washington | 1,149 | $275,770 | $216,000 |
10 | Tonka Bay | Hennepin | 1,539 | $268,623 | $141,875 |
11 | Independence | Hennepin | 3,644 | $266,059 | $191,736 |
12 | Roy Lake | Clearwater; Mahnomen | 62 | $245,940 | -$1 |
13 | Medicine Lake | Hennepin | 317 | $232,457 | $136,250 |
14 | Wayzata | Hennepin | 4,284 | $229,318 | $118,456 |
15 | Shorewood | Hennepin | 7,526 | $227,022 | $163,525 |
16 | Credit River | Scott | 5,575 | $226,709 | $154,145 |
17 | Lake Elmo | Washington | 13,756 | $221,706 | $158,269 |
18 | Minnetrista | Hennepin | 8,791 | $208,427 | $162,474 |
19 | Victoria | Carver | 11,493 | $203,507 | $179,515 |
20 | Fish Lake | Jackson | 44 | $199,663 | $83,750 |
We usually suggest using median income data – either instead of or in addition to – average income data as a true indicator of wealth. If you haven’t thought about median versus average since your last standardized test, you aren’t alone. Here’s what they are:
Now let’s say you had the following simplified set of income data.
Household 1: $30,000
Household 2: $50,000
Household 3: $1,000,000
The average income for this set is $360,000. The outlier data point ($1,000,000) skews the average WAY up. Conversely, the average income would be skewed WAY down if someone had an income of $500. The median income for the same data set is $50,000. Outlier data doesn’t skew the median.
So most business owners should use the median income as a true indicator of wealth, because it provides a more accurate representation of a typical income, especially in areas with significant income disparity.
If your target market is high-income households, the average income may be more relevant. This is because the average income can highlight the presence of a higher concentration of wealthy individuals, which is beneficial for luxury goods and services marketing. We’re using average income on this page because using the Census’s highest reported median value of $250,001 could result in multiple ties for the richest geography.
The Census' American Community Survey uses $250,000+ as a jam value for median income estimates to protect privacy, ensure data consistency, and simplify reporting. A "jam value" in survey data refers to a placeholder or default value used when actual data points are unavailable, incomplete, or exceed certain thresholds. We represent this jam value as $250,001 to make it easy for you to sort.
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United States Census Bureau. Annual Estimates of the Resident Population: April 1, 2020 to July 1, 2023. U.S. Census Bureau, Population Division. Web. May 2024. http://www.census.gov/.
United States Census Bureau. B01001 SEX BY AGE, 2022 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 7 December 2023. http://www.census.gov/.
United States Census Bureau. B19013 Median Household Income, 2022 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 7 December 2023. http://www.census.gov/.
United States Census Bureau. “DP03 SELECTED ECONOMIC CHARACTERISTICS.” 2022 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 07 December 2023. http://www.census.gov/.
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