F
16%
Overall NAT. AVG.
5%
Goods & Services NAT. AVG.
63%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Prior Lake Minnesota National
Cost of living11699100
Goods & Services95100100
Groceries9798100
Health care101109100
Housing163100100
Transportation9797100
Utilities9593100

An Overview of Cost of Living in Prior Lake, MN

Understanding the cost of living in Prior Lake can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Prior Lake cost of living index is 116, which is 16% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

Housing costs are a major factor in the Prior Lake cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 63% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.

Is Prior Lake Affordable?

Is Prior Lake affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Prior Lake, for instance, where the median home price falls 77.8% higher than the national average, and monthly rent rates are 28.6% higher than usual. Additionally, median income levels contribute to the equation, with Prior Lake flaunting a median household income of $108,481, 96.1% higher than the national norm.

What Factors can Influence the Cost of Living in Prior Lake?

Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In Prior Lake, the groceries index is 2.6% lower than the national average.

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Prior Lake, the housing index stands at 63% higher than the national average.

Utilities: Like everything else, utilities costs can range significantly depending on factors like climate, energy sources available, location and even state regulations. Things like electricity, water, heating and waste disposal costs can be higher or lower, depending on the city or state. The utilities index in Prior Lake comes in at 5.2% lower than the national average.

Where is the Data From?

The Prior Lake cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Prior Lake is 17% higher than the Minnesota average
  • The cost of living in Prior Lake is 16% higher than the national average
  • Prior Lake housing is 63% higher than the national average
  • Minnesota general sales tax is 35% higher than the national average
  • Minnesota state income tax is 106% higher than the national average

Most Affordable Places to Live in and Around Prior Lake

See all the best places to live around Prior Lake

Compare Prior Lake, MN Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$122,132$10,178$2,850$3,664
      Renters$41,716$3,476$973$1,252
      To approximate the cost of living and the housing affordability in Prior Lake, MN, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Prior Lake have a median income of $122,132. Therefore, the amount that a consumer should spend on housing costs should be no more than $2,850 per month to avoid calamity and poverty. The renters in the city have an income of about $41,716, which would make their monthly maximum allowable rental costs $973.

      Minnesota Sales Tax

      State General Sales Tax With Max Surtax
      Minnesota 6.875% 7.875%

      Minnesota Income Tax

      State Income Tax (Low) Income Tax (High)
      Minnesota 5.35% 9.85%

      Goods & Services

      Item Prior Lake National avg. Difference
      Haircut $25.86$24.266.6%
      Beauty Salon $37.00$45.5618.8%
      Toothpaste $3.62$3.702.2%
      Shampoo $1.50$1.2816.9%
      Movie $11.32$12.136.7%
      Bowling $25.68$18.0042.6%

      Groceries

      Item Prior Lake National avg. Difference
      Ground Beef $5.75$5.841.4%
      Fried Chicken $1.40$1.5711.2%
      Milk $4.60$4.671.5%
      Potatoes $4.76$4.933.5%
      Pizza $13.00$12.097.6%
      Beer $9.44$10.419.3%

      Health Care

      Item Prior Lake National avg. Difference
      Optometrist $112.72$125.6810.3%
      Doctor $164.15$135.7820.9%
      Dentist $95.01$113.2916.1%
      Ibuprofen $10.71$10.650.6%
      Lipitor $499.35$468.606.6%

      Housing

      Item Prior Lake National avg. Difference
      Home Price $328,400.00$184,700.0077.8%
      Avg. Mortgage Payment $1,983.77$2,346.6915.5%
      Apartment Rent $1,220.00$949.0028.6%

      Transportation

      Item Prior Lake National avg. Difference
      Gasoline $3.32$3.464.0%
      Tire Balancing $59.91$59.920.0%

      Utilities

      Item Prior Lake National avg. Difference
      All Electricity $180.11$193.997.2%
      Phone $187.59$192.252.4%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Mendota, MN1491022.4%
      Mound, MN9,4981044.1%
      Richfield, MN36,2531065.6%
      New Prague, MN8,0221065.9%
      Hopkins, MN18,4001066.1%
      Prior Lake, MN26,77511616.2%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Florence, AZ26,7771076.6%
      Winona, MN26,772955.5%
      Hutto, TX26,7781077.0%
      Colleyville, TX26,76615959.0%
      West Linn, OR26,76415151.3%
      Prior Lake, MN26,77511616.2%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.