The Best Neighborhoods in Stillwater, MN: Historic Hills to Modern Villages

If you’ve visited Stillwater for a weekend, you probably know it as the "Birthplace of Minnesota," famous for its lift bridge, riverboats, and antique shops. But living here is a different experience than just visiting. When you decide to make the move to the St. Croix Valley, you aren't just buying a house; you are choosing between two very distinct lifestyles.

On one hand, you have the historic districts that hug the river—places filled with walkability, charm, and 100-year-old woodwork. On the other hand, just a few miles west, you have thriving, modern communities with cul-de-sacs, three-car garages, and easy grocery store access.

Finding your place here usually comes down to that specific trade-off: Do you want the character of the river valley, or the convenience of the suburbs?

Let’s break down the best neighborhoods in Stillwater so you can figure out which one fits your daily life.

When people dream of living in Stillwater, they are usually picturing "The Hills." These are the two residential historic districts that flank downtown. They offer incredible architecture and views, but they have distinct personalities.

South Hill is perhaps the more recognizable of the two. This is where you find many of the grand Victorian estates and the famous Main Street Stairs. Because it sits closer to Highway 36, it’s often a preferred spot for commuters who need to get to St. Paul quickly. The energy here is a bit higher; you are very connected to the buzz of downtown. If you live here, you are likely walking to dinner on Friday nights, but you might also deal with a bit more traffic during peak tourist season.

North Hill tends to feel a little quieter and slightly more secluded. While you still find large historic homes here, the mix includes more modest historic cottages and craftsman-style houses. A major perk for North Hill residents is the easy access to Pioneer Park and the trailhead for the Brown’s Creek State Trail. It feels less like a tourist destination and more like a hidden historic pocket.

What to watch for:

If the idea of plaster walls and steep driveways doesn't appeal to you, heading west to Croixwood might be the right move. This is one of Stillwater’s most established and popular subdivisions. It was largely developed in the 1970s and 80s, which means the trees have had decades to mature, giving the streets a lush, canopy-covered feel that newer developments often lack.

The housing here is a practical mix of split-levels, sturdy ramblers, and two-story homes. It is a quintessential residential neighborhood—winding streets, quiet cul-de-sacs, and neighbors who have often lived there for twenty years.

The biggest draw for Croixwood is usually convenience. You are located near the "commercial" part of town (near Target and Hy-Vee), meaning you can run errands without ever getting stuck in downtown bridge traffic. For buyers looking for homes for sale in Stillwater that offer solid value and a traditional suburban layout, this is a top contender. Prices here typically hover in the $350K to $550K range, making it approachable for many buyers.

Liberty on the Lake offers a completely different vibe than the rest of the city. Built largely in the late 90s and 2000s, this master-planned community was designed using "New Urbanism" principles. Instead of the typical suburban sprawl, the focus here is on connection and curb appeal.

Most homes in Liberty feature wide front porches and alley-loaded garages. The idea is to push the living space forward to the street to encourage neighborly interaction. The neighborhood is dotted with greenspaces, gazebos, and walking paths that connect directly to the Long Lake trail system.

It is located right next to Rutherford Elementary, making it a very walkable community for students. The housing stock ranges from single-family homes to row-style townhomes. If you are looking for that "Main Street USA" feel but want modern plumbing and insulation, this is usually the first stop. Expect prices to range from around $450K for smaller footprints up to $750K+ for larger single-family homes.

For buyers seeking executive homes, acreage, and privacy, you generally have to look toward the outskirts of town. Legends of Stillwater and Hunters Ridge are two premier neighborhoods that offer a retreat-style atmosphere while keeping you within 10 to 15 minutes of the river.

Legends of Stillwater sits near Long Lake and is known for larger custom builds. You aren't going to find cookie-cutter layouts here; these are executive homes with 3+ car garages and expansive yards. The neighborhood has excellent trail connections, making it popular for those who want an active outdoor lifestyle without sacrificing square footage.

Hunters Ridge offers a similar level of prestige but often feels even more secluded due to conservation easements and heavily wooded lots. If you want a half-acre or more and don't want to see into your neighbor's kitchen window, this is where you look.

These are the areas to search for luxury real estate listings, with prices generally starting in the $700Ks and climbing well over $2M depending on the acreage and finish level.

Sometimes the best neighborhood in Stillwater is actually just across the border. When looking at the St. Croix Valley, the lines between these towns often blur.

Beyond the specific subdivision, the lifestyle here is shaped by a few key factors that apply to everyone.

The Schools

Most of these neighborhoods fall within Stillwater Area Public Schools (ISD 834). The district is known as the "Ponies," and there is a massive level of community support for local athletics, music, and arts. Whether you are in North Hill or Liberty on the Lake, the community rally point is often the high school on Friday nights.

The Commute

If you work in the Twin Cities, Highway 36 is your lifeline.

Outdoor Life

It’s not just about the St. Croix River. A major asset for residents is the Brown’s Creek State Trail, which connects the river to the Gateway State Trail. It allows you to bike all the way to St. Paul if you have the stamina. Combine that with multiple golf courses and winter attractions like the Ice Castles or local rinks, and you have a town that stays active year-round.

Stillwater isn't a "one size fits all" market. If you are willing to handle the maintenance of a historic home for the payoff of walking to the best restaurants in the state, the North or South Hill is your spot. If you want a turnkey home with a big yard and a neighborhood barbecue culture, look west to Croixwood or Liberty.

The best way to decide is to walk them. Park the car, walk the streets of the South Hill, and then drive out to Legends to feel the difference in space and pace.

The commute is generally very manageable, especially if you work in St. Paul, which is about 20–30 minutes away via Highway 36. Commuting to downtown Minneapolis takes a bit longer, usually ranging from 35 to 45 minutes depending on traffic and your specific starting point in Stillwater.

The North Hill and South Hill neighborhoods are the closest to the lift bridge and historic downtown. Residents in these areas can often walk or bike to the river, restaurants, and shops, though they should be prepared for steep hills when walking back home!

Yes, but they are more limited compared to neighboring Lake Elmo. You can find newer custom homes in developments like Liberty on the Lake (resale newer builds) or Legends of Stillwater, but for large-scale brand-new developments, buyers often look just across the border to Lake Elmo while remaining in the Stillwater school district.

Property taxes can vary, but Lake Elmo often sees slightly higher tax bills due to the rapid infrastructure development and new construction assessments. Stillwater’s tax base is more established, though specific costs depend heavily on the property's value and specific assessment.