Stillwater, Minnesota, is experiencing notable shifts in its economic and demographic landscape. As a community known for its rich history and vibrant local businesses, understanding these changes is crucial for residents and stakeholders alike.
Housing Market Dynamics
The housing market in Stillwater has seen significant fluctuations. As of May 2026, the median listing price for homes was $495,000, marking a 21.05% decrease from the previous year. Despite this decline, the median sold price stood at $450,000, reflecting a 3.73% decrease year-over-year. The market remains active, with 132 homes listed for sale and a median of 26 days on the market. This indicates a seller’s market, where demand continues to outpace supply. Additionally, the median rent is $2,550 per month, suggesting sustained demand in the rental sector.
Demographic and Economic Shifts
Stillwater’s population is projected to be 19,336 in 2026, showing a slight decline of 0.09% annually. The median household income is $105,853, with a per capita income of $58,397, positioning the city as relatively affluent compared to state and national averages. The local economy employs approximately 9,870 individuals, with significant employment in health care and social assistance (1,559 people), retail trade (1,072 people), and manufacturing (1,040 people). Notably, about 19.75% of the workforce telecommutes, reflecting a shift towards remote work.
Community Development Initiatives
In February 2026, Jason Zimmerman was appointed as the new Community Development Director for Stillwater. Zimmerman is leading efforts to update the Comprehensive Plan, aiming to guide the city’s development over the next two decades. This plan focuses on sustainable growth, enhancing local businesses, and improving residents’ quality of life.
Support for Local Businesses
The city actively supports its local business community through various initiatives. The Stillwater Economic Development Authority (EDA), established in 2021, provides tools for economic analysis, site assembly, and public financing of development projects. Additionally, the city collaborates with the Washington County Community Development Agency to offer resources such as site selection assistance and financial programs, including Tax Increment Financing and the Minnesota Job Creation Fund.
Events like the World Snow Celebration, held annually in January, attract over 50,000 visitors to downtown Stillwater. This event not only boosts tourism but also stimulates the local economy by increasing patronage to local businesses.
Looking Ahead
As Stillwater navigates these economic and demographic changes, the community’s commitment to supporting local businesses and fostering sustainable development remains evident. With strategic planning and collaborative efforts, Stillwater is poised to adapt to evolving economic trends while preserving its unique character.