Stillwater, Minnesota, renowned for its historic charm and scenic beauty along the St. Croix River, has experienced significant economic development in recent years. This growth is evident across various sectors, including tourism, healthcare, manufacturing, and education.
Key Industries Driving Growth
Tourism and hospitality play a pivotal role in Stillwater’s economy, accounting for approximately 30% of local business activity. The city’s vibrant downtown, with its boutique shops and diverse dining options, attracts visitors year-round. Healthcare is another expanding sector, offering stable employment opportunities without the need for commuting to larger cities. Additionally, the manufacturing industry has evolved, focusing on biomedical advancements and innovative consumer products.
Housing Market Trends
The housing market in Stillwater reflects the city’s economic vitality. As of June 2026, the median listing price for homes was $632,450, marking a 9.08% increase year-over-year. The median rent stood at $2,575 per month, indicating strong demand in both buying and renting markets. Homes sold in a median of 37 days, suggesting a balanced market with opportunities for buyers and renters alike.
Community Development Initiatives
In 2021, the Stillwater City Council established the Stillwater Economic Development Authority (EDA) to enhance economic development efforts. The EDA focuses on studying and analyzing development needs, facilitating site assembly, and pursuing public financing for projects. This initiative underscores the city’s commitment to fostering a thriving business environment.
Furthermore, the appointment of Jason Zimmerman as the Community Development Director in early 2026 signifies a continued dedication to meaningful growth. Zimmerman is actively working on the Comprehensive Plan, which will guide Stillwater’s community and development efforts for the next two decades.
Supporting Local Businesses
The collaboration between the City of Stillwater, the Chamber of Commerce, and local businesses has been instrumental in sustaining the downtown area’s vibrancy. This partnership has led to a bustling retail scene, diverse dining experiences, and a strong sense of community. Residents and visitors are encouraged to support local businesses, contributing to the city’s ongoing economic success.
As Stillwater continues to evolve, the collective efforts of the community, local government, and businesses will play a crucial role in shaping a prosperous future for this historic river town.