Where the money lives

The Business Journal analyzed data and found that a few areas have both high median household incomes and high population growth.

Where the money lives

One ZIP code in the Twin Cities is the richest.

According to the latest Census data, the 55424 zip code in northeastern Edina has the highest average household income of the Twin Cities. The median home price in the area is under $800,000. Nearly nine out of 10 residents hold bachelor's degrees.

The next highest income areas are located a bit further away from Minneapolis. However, almost all 10 of the wealthiest ZIP Codes are located on the western edge of the metro. Lake Elmo, in the east metro and New Market in Scott County are the two exceptions.

This area in Edina is home to the 50th & France District, which includes a number restaurants, boutiques, and a Lunds & Byerlys. A portion of the 50th & France District -- east of France Avenue -- lies in Minneapolis.

The 55424 includes also the Country Club District, a 14 block neighborhood where nearly all of the 555 houses are protected against demolition or major changes due to historic preservation rules.

The area has just over 800 residents. There are several reasons why high-earners might want to move there.

Mike Lynch, broker at Lakes Sotheby’s International Realty, said that, "Even though Edina, Minnesota is a first-ring suburban city, the 55424 zip code literally touches Minneapolis." You're only 10 minutes from downtown and 15 minutes from the heart of St. Paul. It's a little like an extension of Minneapolis.

Edina's highly rated school district, as well as the walkability of the area, also attract people to this ZIP code. Edina, Minnesota was recently named as the best "city-like suburb" in the United States.

StorageCafe's report said that "Edina consistently scores well on all fronts with a vibrant entertainment scene, excellent transportation options and an active job sector." Apartments make up a significant portion of the housing stock, which means that there are more housing options to suit different lifestyles. Edina is also known for its shopping and dining, which has a long tradition.

Some ZIP codes along the southern shores of Lake Minnetonka have the highest household median income in the Twin Cities.

ZIP codes do not represent geographic areas. Instead, they are a way to group delivery routes or addresses. ZIP codes are artificial constructs that do not have a geographic area. They can overlap or be subsets. There are many cities with more than one zip code. They often do not correspond to the city boundaries.

What are people flocking to?

Two areas in the Twin Cities have experienced explosive growth: 55405 (the University of Minnesota campus at Minneapolis and a small part of Cedar-Riverside and Dinkytown) and 55402 (the western part of downtown Minneapolis).

The housing boom has been a major factor in these two areas, even though the pandemic is pushing workers out of downtown. The areas will only continue to grow.

John Louis, the spokesperson for Minneapolis' Community Planning and Economic Development said that the city expects, barring major external factors, to continue growth in those parts of Minneapolis which have seen the strongest market over the last decade. The downtown and university areas have seen the greatest growth in terms of housing and population compared to 2010.

Since 2016, the area around the U, which includes the majority of the campus, has seen a fivefold increase in population. This is the highest rate of growth of any state area and not just Twin Cities. Residential construction, mostly student housing with high density, has boomed around campus. One example is the construction of a 1,000-bed student housing complex.

Census data shows that the 55402 area, located on the western side downtown of Minneapolis, has seen a population increase of nearly two-thirds in the last five years. The apartment boom is part of a bigger trend that affects all of downtown. Both developers and potential residents are driving the demand for apartments.

Downtown, including several ZIP codes, has now 56 700 residents.

Minneapolis Downtown Council set a long-term target of 70,000 people by 2025, a goal that was originally set when the city's population was only half of what it is today. The city has made great strides over the past few years, but recent data indicates that growth in the area is slowing down.

What are the degrees?

In the Twin Cities there is a correlation between higher incomes and people with college degrees. The two areas that have the highest education levels are also the richest -- 55424, in Edina where 86% have at least a Bachelor's Degree, and 55439 the southwest quadrant of Edina which includes Braemar golf course, where 79% have a College degree or higher.

It's no surprise that the third-ranked area in terms of college and advanced degrees has 78% of its population with a bachelor degree or higher. This area includes Macalester College, St. Catherine University and the surrounding area of St. Paul. St. Paul has over a dozen colleges and universities.

Luxury market continues to be strong

Unsurprisingly, the median income in a particular area correlates with its home value. Edina's 55424 has the highest average home values in Minnesota, at just over $780,000. According to Mike Lynch, broker at Lakes Sotheby's International Realty, Edina's high-end homes are still in demand, and the recent slowdowns of the housing market have not affected them.

Lynch explained that the market shift is a little pandemic, with people wanting more space. The $1 million market is not affected by the current market shift.

Wayzata is the area with the second-highest home value. It's followed by the southern shore of Lake Minnetonka and southwest Edina.