Stillwater, Minnesota, renowned for its historic charm along the St. Croix River, has evolved into a dynamic economic hub. The city’s economy is bolstered by a diverse mix of industries, including tourism, healthcare, manufacturing, and education.
Tourism and Hospitality
Tourism plays a pivotal role in Stillwater’s economy, accounting for approximately 30% of local business activity. The historic downtown area, with its boutique shops and diverse dining options, attracts visitors year-round, contributing significantly to the city’s economic vitality.
Healthcare Sector
The healthcare industry in Stillwater is experiencing rapid growth, offering a range of medical and administrative roles. This expansion not only provides employment opportunities but also enhances the quality of life for residents by ensuring access to comprehensive healthcare services.
Community Development Initiatives
In February 2026, Jason Zimmerman was appointed as the new Community Development Director for Stillwater. Zimmerman is leading efforts to develop a Comprehensive Plan that will guide the city’s growth and development over the next two decades. His focus includes fostering collaboration between the city, local businesses, and residents to ensure sustainable and meaningful growth.
Support for Local Businesses
The City of Stillwater, in partnership with the Greater Stillwater Chamber of Commerce, actively supports local businesses through various initiatives. This collaborative approach has resulted in a vibrant downtown area, filled with thriving retail shops, restaurants, and collaborative spaces. The community’s commitment to supporting local enterprises extends beyond seasonal events, fostering a year-round environment conducive to business success.
Economic Development Resources
Stillwater offers a variety of resources to support business development. The city’s Economic Development Authority (EDA) provides tools for studying and analyzing economic needs, site assembly, and public financing of development projects. Additionally, partnerships with organizations like the Washington County Community Development Agency offer financial assistance and site selection support to local businesses.
Real Estate and Housing Market
The housing market in Stillwater reflects the city’s economic health. As of May 2026, the median listing price for homes was $495,000, with a median sold price of $450,000. The market is characterized by a moderate supply of homes and sustained demand, indicating a stable real estate environment.
Looking Ahead
With a population of approximately 19,336, Stillwater continues to balance its rich historical heritage with modern economic development. The city’s strategic initiatives, supportive community, and diverse economic base position it well for continued growth and prosperity.