Chanhassen, Minnesota continuously ranks as one of the best places to live in the country, recognized for the superior quality of life it affords residents. Located a short drive from Downtown Minneapolis, the family-friendly town boasts 90 miles of nature trails and 34 parks. Sophisticated architecture, gorgeous lakes, upscale luxury homes, and a 1,137-acre arboretum add to the allure of this thriving area.
Even the artist formerly known as Prince loved living in Chanhassen. The award-winning performer will be forever remembered in this hip town, spending his final days at his Paisley Park home, a state-of-the-art suburban playground. Within 15 minutes of Chanhassen, there are almost 1,500 restaurants, several public golf courses, ski resorts, art galleries, contemporary museums, and more, providing residents with unlimited entertainment opportunities.
With so much to see and do in the Twin Cities suburb, it is easy to see why so many people want to live here. At Chestnut Realty, we have extensive knowledge of the area and can help you determine if this is a town you want to call home. A firm understanding of the cost of living in Chanhassen may help you make an informed decision.
The cost of living in Chanhassen, Minn.
According to the Economic Research Institute, Chanhassen has a cost of living of 3% below the national average. It ranks 2,748 out of 5,671 cities in the United States and has the 17th lowest state tax rate.
Chanhassen is part of Carver County, Minn. To calculate the cost of living index in this region, the Economic Policy Institute considers the following monthly expenses based on a two-parent, two-child family:
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Housing: $1,357.
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Food: $957.
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Child care: $2,047.
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Transportation: $1,283.
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Health care: $1,041.
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Taxes: $1,212.
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Other necessities: $838.
Average monthly costs equal $8,734, or $104,811 per year, for a modest standard of living. The Economic Policy Institute points out that Carver County has the second highest cost of living among other counties in Minnesota. However, since the median household income is ranked highest in the state, Carver County ranks 85th when comparing the cost of living to the median income.
The median housing value in Chanhassen
The Metropolitan Council reported that in the 2000 census, the median housing value in Chanhassen was $210,700. According to the most recent data collected from 2017 to 2021, the median housing value rose to $426,200, with a homeownership rate of 87.8%.
Sales across the state decreased by 31% compared to April 2022, with new listings down by 27%. The median sales price also dropped to $335,000, a welcome decrease for buyers. Despite spending more time on the market (an increase to 41 days), sellers received 99.3% of their asking price.
Carver County housing market update
Year-to-date key metric comparisons from June 2022 to June 2023 in Carver County revealed the following:
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New listings: 1,299 (-1.3%).
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Pending sales: 854 (-14.3%).
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Closed sales: 748 (-18.9%).
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Median sales price: $440,000 (-7.2%).
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Percent of original list price received: 99.2% (-3.4%).
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Days on the market until sale: 41 (0.0%).
Most residential homes in Chanhassen were built between 1970 and 1999, but with rapid expansion over the years, there are many newer, more modern houses to choose from. Several new construction developers are currently building family-friendly four- or five-bedroom homes with an average price between $800,000 and $1.5 million.
Average household income
Data collected by Minnesota Compass from the U.S. Census Bureau reveals 60.2% of households in Chanhassen earn an annual income of $100,000 or more (as of 2021). The Economic Research Institute suggests a median household income of $124,184 for 2023, with an average household salary of $67,419 and a 3% unemployment rate.
Utility costs in Chanhassen
Winters are cold in Chanhassen, with the average daily temperature below 36ºF for approximately three months, from November to March. The extreme temperatures make heating costs considerably higher than in other parts of the country.
Energy costs
On average, a household with a family of four can expect to pay $170 per month for heating and electricity. This amount varies greatly depending on the size of a home, usage, the thermostat setting, and other contributing variables.
Minnesota Valley Electric Co-op and Xcel Energy provide electricity to Chanhassen properties, and Centerpoint Energy is the natural gas provider.
Minnesota Valley Electric Co-op and Xcel Energy provide electricity to Chanhassen properties, and Centerpoint Energy is the natural gas provider.
Water and sewage costs
The City of Chanhassen is currently transitioning from quarterly to monthly billing for all utility customers in 2023. Homeowners can expect to pay a minimum monthly of $5.54 per 1,000 gallons of water usage. Residential sewage costs have a minimum monthly charge of $13.29, and there is an annual fee of $12.72 for water quality testing.
Trash collection
The City of Chanhassen does not offer garbage pickup, so residents must hire a licensed hauler such as Waste Management or Suburban Waste Services. Haulers must provide homeowners with a recycling container. Weekly pickup of a 96-gallon trash container ranges between $25 and $45 per month, depending on the provider. Chanhassen Public Works accepts grass clippings, brush, and other yard waste for an unloading fee of $1.00 per bag or $8.00 per cubic yard.
Communication costs
U.S. Census data indicates 99.1% of households have a computer, and 96.1% have a broadband internet subscription. Mediacom provides cable television services, and satellite television providers include DirecTV and Dish Network. Century Link, HughesNet, Mediacom, and several other companies offer high-speed internet services. Prices vary based on package options. Century Link is the only telephone provider in Chanhassen.
Links to all of the above-listed service providers can be found here.
Links to all of the above-listed service providers can be found here.
The cost of food in Chanhassen
The average monthly grocery cost for a family of four in Chanhassen is $1,425. This amount varies greatly depending on the store, brand, and amount of items purchased. At stores such as Lakewinds Food Co-Op, shoppers can expect to spend more for locally grown organic produce, meats, and specialty items. Discount retailers, such as Walmart, Target, and ALDI, are readily available, along with local stores, such as Lunds & Byerlys, Cub, and Kowalski's Markets.
Contact Chestnut Realty for help in finding your next home in Chanhassen
As in any town, the cost of living varies depending on usage and the services you choose to take advantage of. In Chanhassen, residents can enjoy upscale amenities that complement an active and healthy lifestyle.
Chestnut Realty has a strong understanding of the Twin Cities area and can help you find a neighborhood with a cost of living that meets your budgetary needs. Contact us to get started on finding a new place to call home in this unique suburb of Minneapolis.
*Header photo courtesy of Shutterstock
