Why Homebuyers Are Flocking To Lake Minnetonka’s Exclusive Shorelines

As housing costs continue to rise in major cities, more Americans are setting their sights on Lake Minnetonka—a picturesque destination just west of Minneapolis known for its upscale lakeside communities, strong sense of place, and year-round outdoor appeal.

Once seen primarily as a vacation spot, the area is now attracting full-time residents looking to swap city living for scenic views and a slower pace of life.

“Lake Minnetonka is one of the most desired lake lifestyle communities in the country,” Nick Leyendecker, a real estate agent in the Twin Cities area, tells Realtor.com®.

The migration to Lake Minnetonka is part of a larger shift: People are increasingly prioritizing lifestyle over location, opting for areas that offer natural beauty, recreational opportunities, and space to stretch out.

Rural amenity migration—or relocating for quality of life rather than financial gain—has been a growing trend for decades, especially in the American West, where it peaked in the 1990s, according to a U.S. Department of Agriculture study. Researchers note that these moves are often driven by access to “regional amenities,” a pattern that continues to shape where people live today.

“Lake Minnetonka has always offered two things: energy and escape,” says Daniel Gustafson, founder of Lake Minnetonka Real Estate. “Whether you’re drawn to the social scene or the stillness of a quiet bay, it’s the feeling of the lake as your front porch that keeps people here. For some, its legacy—their families helped build Minnesota’s grain and milling empires. For others, it’s new—they step into Wayzata for the first time and just know. Minnetonka is more than a lake. It’s a community people aspire to belong to.”

Relocation trend hits Minnesota’s shores

Lake Minnetonka has been attracting locals and out-of-state homebuyers throughout the decades.

At more than 14,000 acres in size, it’s the biggest lake in the Twin Cities metropolitan area—about 16 miles west-southwest of Minneapolis. The area is a year-round attraction, as even in the colder months, travelers can enjoy winter activities like ice fishing.

“In the summer especially, but all year around, the lake is a very fun place to be with a little something for everyone,” says Leyendecker.

As the demand for scenic properties increases, so does the value of the land surrounding Lake Minnetonka.

The median list price for property around the lake is $1.2 million (+2% year over year), while the median list price in the Minneapolis metro area is $446,000 (-2.5% year over year).

“Lakeside homes are often more expensive than other inland areas, but their relative expense will depend on local amenities, desirability, and home availability,” says Hannah Jones, senior economic research analyst at Realtor.com. “Many lake houses are vacation homes or second homes and don’t necessarily reflect migration away from a city’s core.”

The lake is a 14,528-acre network of 37 bays connected by 31 channels, with more than 120 miles of shoreline and a depth of up to 101 feet. There’s dining, shopping, live music, festivals, and walkable downtowns of Wayzata and Excelsior.

“With 120-plus miles of shoreline, the home/condo inventory on Lake Minnetonka is broad and eclectic,” Leyendecker says. “For people who are intent on living the Lake Minnetonka lifestyle, so long as they are willing to sacrifice other amenities, there is a home or condo for buyers in every price range.”

The area has piqued the interest of A-list celebs with its small-town charm and shoreline location.

A range of high-profile entertainers and athletes have stayed around the lakeside, including music legend Prince, actor Kevin Sorbo, producer and songwriter Jimmy Jam, former baseball star Alex Rodriguez, and former NBA player Kevin Garnett.

With the elite interest, prime shoreline sites have reached impressive price ranges—some hitting even $15 million. Buyers investing at this level in land alone typically allocate a construction budget that’s twice as much, aiming to build bespoke luxury estates.

Despite the hefty price tags, Leyendecker notes that lakeside properties offer a wide range of options that adapt to a buyer’s budget and specific needs.

“There are currently 95 properties for sale offering either direct frontage or deeded access to the lake,” he says.

“The price range on Lake Minnetonka is extremely wide, currently ranging from $122,400 for a one-bedroom, one-bath condo on the westerly part of the lake in Mound, to $55 million for a 29,000-square-foot, 8-acre estate on the easterly part of the lake in Wayzata, with 93 other options in between.”

So, while luxury homes continue to dot the lakeshore, buyers looking to invest can still find properties without the multimillion-dollar price tag—it just means deciding which part of the lake to live on.

“The market is always changing, and clients are always evolving,” says Leyendecker. “In and of itself, to live on Lake Minnetonka is a major luxury, so anyone who buys a home on the lake could be considered a ‘luxury buyer’ as they are prioritizing the lake amenity over other wants/needs within their budget.

“During COVID, we also saw a migration trend of people moving from inner cities to suburbs and a trend of buyers seeking outdoor lifestyles, both of which also drove people toward lakes like Lake Minnetonka,” says Leyendecker. “These trends have all begun to subside.”

Although “trophy” properties are frequent, there are opportunities to invest in Minnetonka on a smaller scale, says Gustafson.

“I was able to help a client and friend purchase a lot on Lake Minnetonka for $90,000 recently. It was unbuildable, but the lake access alone made it priceless. He installed a permanent dock and canopy, and now keeps his boat there year-round,” he says.

“There are still opportunities—but they’re rare, and you have to recognize them the moment they appear. I tell people all the time: I can help at every price point, whether it’s a legacy estate or a well-located condo with a slip.”