Richest 1% of Minnesota families own nearly one third of the wealth [View all]

The wealthiest communities in the Twin Cities are roughly 10 times richer than the poorest ones, according to a new database of household wealth.

Median households in parts of the west metro — including Lake Minnetonka, Plymouth and Maple Grove — have a net worth well over $400,000. Those in parts of south Minneapolis and the western part of St. Paul have closer to $40,000.

Meanwhile, Minnesota wealth has also become more concentrated in fewer hands.

Net worth, or wealth, is a measure of a household’s assets, like cash accounts, retirement accounts, and home equity, minus its debts. For most people in the middle class, home equity is the chief component of household wealth. Many families have a negative net worth, which means their debts are greater than their assets.

In the richest areas of the country, like Palo Alto or the New York City suburbs, the typical family is worth well over $1 million. In the poorest communities, which are in New York, Houston and Milwaukee, the typical family has only $18,000 in assets.

“People who grow up in wealthier places can reap benefits that span generations,” Tom Kemeny, one of the database’s compilers, explained in a recent commentary. “As a result of property taxes and philanthropy, wealthier communities have greater resources for schools, health care, transportation and other infrastructure.”

Read more at: https://minnesotareformer.com/2025/01/28/richest-1-of-minnesota-families-own-nearly-one-third-of-the-wealth/