Stillwater, Minnesota, renowned for its historic charm and scenic beauty along the St. Croix River, is also a hub of economic activity. The city’s economy is characterized by a diverse mix of industries, a robust housing market, and proactive community development efforts.
Thriving Local Businesses
Downtown Stillwater is a testament to the city’s vibrant business community. The area boasts a variety of retail shops, collaborative spaces, and dining establishments that cater to both residents and visitors. This bustling environment is the result of a concerted partnership between the City of Stillwater, the Chamber of Commerce, and local businesses, all working together to enhance the community’s economic vitality.
Housing Market Dynamics
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 has seen a 44.44% increase in active listings year-over-year, indicating a growing inventory. Homes typically spend a median of 26 days on the market, suggesting a balanced pace of sales.
Economic Development Initiatives
To further bolster economic growth, the City of Stillwater established the Stillwater Economic Development Authority (EDA) in 2021. The EDA focuses on analyzing economic development needs, facilitating site assembly, and pursuing public financing for development projects. This initiative underscores the city’s commitment to fostering a supportive environment for businesses and entrepreneurs.
Demographic Insights
With a population of approximately 19,336 residents, Stillwater maintains a stable community base. The median household income stands at $105,853, reflecting a relatively affluent population. The city’s educational attainment is notable, with 51.02% of adults holding a bachelor’s degree or higher, contributing to a skilled workforce that supports various industries.
Looking Ahead
Under the leadership of Community Development Director Jason Zimmerman, Stillwater is actively working on a Comprehensive Plan to guide the city’s growth over the next two decades. This plan aims to balance preservation of the city’s historic character with strategic development, ensuring that Stillwater remains a desirable place to live, work, and visit.
In summary, Stillwater’s economic landscape is a harmonious blend of tradition and progress. The city’s thriving local businesses, dynamic housing market, and proactive development initiatives position it as a model for sustainable economic growth.