Stillwater, Minnesota, often celebrated as the “Birthplace of Minnesota,” seamlessly blends its rich history with a dynamic economic environment. This unique combination has fostered a community where tradition meets modern growth, creating a vibrant local economy.
Tourism and Hospitality: The Heartbeat of Stillwater
The city’s picturesque downtown, nestled along the St. Croix River, is a magnet for visitors year-round. Historic 19th-century storefronts house a variety of boutique shops, restaurants, and collaborative spaces, contributing significantly to the local economy. Tourism and hospitality account for approximately 30% of all local business activity, with this figure rising to an estimated 50% in the downtown area. This sector’s vitality underscores the community’s commitment to preserving its heritage while embracing contemporary commerce.
Diversifying the Economic Portfolio
Beyond tourism, Stillwater’s economy is bolstered by robust healthcare, manufacturing, and education sectors. The healthcare industry offers a range of medical and administrative roles, providing stable employment opportunities for residents. Manufacturing has evolved from the city’s lumber town roots to include facilities focused on biomedical advancements and innovative consumer products. Additionally, educational institutions contribute to workforce development, ensuring a skilled labor pool for various industries.
Community Development Initiatives
In 2021, the Stillwater City Council established the Stillwater Economic Development Authority (EDA) to enhance economic development tools, facilitate site assembly, and pursue public financing for development projects. This initiative aims to communicate and collaborate effectively with the local business community, fostering an environment conducive to growth and innovation.
Furthering these efforts, the city welcomed Jason Zimmerman as the new Community Development Director in early 2026. Zimmerman is actively working on the Comprehensive Plan, which will guide Stillwater’s community and development efforts for the next two decades. His focus includes continuing projects initiated by his predecessors and shaping the city’s future growth.
Supporting Local Businesses
The City of Stillwater, in partnership with the Washington County Community Development Agency (CDA), offers various resources to assist local businesses. These include site selection databases, financial assistance programs like Tax Increment Financing (TIF), and initiatives such as the Washington County Open to Business Program. These resources aim to support viable projects with unique economic development needs, ensuring the sustained growth of the local business community.
Real Estate and Housing Market
Stillwater’s real estate market reflects its economic vitality. As of June 2026, the median listing price for homes was $632,450, marking a 9.08% year-over-year increase. The median rent stood at $2,575 per month, indicating strong demand in both buying and renting markets. With 151 homes for sale and a median of 37 days on the market, the housing sector remains active and competitive.
In conclusion, Stillwater’s economic landscape is a testament to the harmonious blend of its historical charm and forward-thinking development. Through strategic initiatives, diverse industries, and community collaboration, the city continues to thrive, offering residents and visitors a unique and prosperous environment.