The 7 Fastest-Growing Towns in Minnesota Everyone Is Talking About

Minnesota ranks 22^nd among all states by population. According to the 2020 Census, the state was home to 5,706,504 people. Yet, the population in this part of the United States is slowly growing, and the 2022 estimates show an increase in population of about 11,000 people. Discover the fastest-growing towns in Minnesota and find out which parts of the state are rapidly expanding.

All the data used for this article comes directly from the 2020 to 2022 population change predictions issued by the U.S. Census Bureau, so these trends are at least somewhat recent.

7. Dayton           

The first place on the list of the fastest-growing towns in Minnesota is Dayton. Dayton is a city in both Hennepin County as well as Wright County. Dayton is a northwest city suburb of Minneapolis-St. Paul. The northern boundary of this city runs along the Mississippi River following its confluence with the Crow River.

According to the 2020 Census, Dayton had a population of 7,263 people. However, the population rapidly grew over the next two years. An additional 1,979 people moved to this part of the state by 2022, and the new population was 9,242. While this is not a massive population increase in numbers alone, this was a 27.24% population increase over two years!

So, while Dayton’s population is small for a city, it’s growing faster than most other cities in the country.  

6. Shakopee

Shakopee is another city suburb of Minneapolis in the southeastern part of the state. This particular city is on the southwestern fringes of Minneapolis, and its northern boundary is defined by the Minnesota River. The city is known for the Shakopee Historic District, an area that contains artifacts from Native American and First Nations cultures dating back several hundred years.

The population of Shakopee in 2020 was 43,704 people. The population grew by a total of 2,031 residents in the following two years, bringing the total population up to 45,735. That represents a growth in this part of the state of 4.64%. People moving away from central Minneapolis are probably moving to nearby cities like Shakopee and Dayton, increasing their populations as people continue to leave major cities.

5. Lake Elmo

At this point, it should come as no surprise that our next entry on the list of the fastest-growing towns in Minnesota is also a suburb of the Minneapolis-St. Paul metro area. This time, the small city is on the eastern outskirts of St. Paul. The city is famous for the large Lake Elmo Park Reserve in the center of the city area. This preserve provides people with the chance to go boating, camping, walking, and more.

Lake Elmo’s population in 2020 was 11,333. Yet, the number of residents in this area grew by an astounding 18.67% over the next two years. That means the region added 2,116 people, bringing the total population in this area to 13,449 residents!

4. Cottage Grove

Cottage Grove is a city in Washington County. Like the other entries on this list, Cottage Grove is very close to St. Paul in the greater Minneapolis-St. Paul metro area. Cottage Grove’s southern border is on the northern banks of the Mississippi River. The city also is a few miles away from Wisconsin’s western border.

The population in Cottage Grove in 2020 was 38,837. The population in this city grew over the next two years, reaching 41,033 people. The city gained 2,196 residents, a total gain of 5.65%. So, Cottage Grove also experienced a significant amount of growth between 2020 and 2022, much like other cities near the Minneapolis-St. Paul region.  

3. Otsego

Otsego is yet another one of the suburbs of Minneapolis-St. Paul. The city is located northwest of Minneapolis and is in Wright County. The city’s name is derived from Otsego County, New York.

Like the other cities on this list, Otsego experienced a large, rapid growth given its initial population. In 2020, the population in Otsego was 19,965. Since then, the estimated population in the city grew to 22,424 over the next two years. A total of 2,459 people moved to this area in just two years, representing an increase of 12.31%! The city grew at a very fast pace relative to its existing population, showing that this is a desirable place to live and work.

2. Woodbury

Woodbury, Minnesota is yet another one of the fastest-growing towns in Minnesota that is in the greater Minneapolis-St. Paul Metro area. Woodbury is the 8^th most populous city in the state, and it is known for its dozens of parks and lakes. The northern boundary of the city is I-94, a major highway connecting Minnesota to North Dakota and Wisconsin.

Woodbury’s population in 2020 was 75,107. The city gained 3,454 residents over two years, reaching 78,561 people in 2022. The population grew by 4.59%, a large growth considering the initial population.  

1. Lakeville

Lakeville is the leader of the fastest-growing towns in Minnesota. The city suburb is a part of Dakota County, Minnesota. Like every other city and town on this list, the city is a suburb of the Minneapolis-St. Paul metropolitan area. This is also the southernmost city suburb or exurb of the aforementioned metro area.

The city’s population was 69,496 in 2020. The population skyrocketed over two years, adding 5,057 residents. The new population is 74,553 people, an increase of 7.27%.

The population of both Minneapolis and St. Paul have decreased in recent years as people all over the United States continue to move out of major cities. Given that all the cities on this list are suburbs of this metro area, many of the people settling in those suburbs are probably coming from Minneapolis and St. Paul. Increasing housing costs, remote job opportunities, and other factors have pushed people from those cities and into the outskirts, vastly increasing their populations. Future data will show whether or not this trend continues or reverses course, sending people back into city centers.  

Summary of the Fastest-Growing Towns in Minnesota

The photo featured at the top of this post is © Tony Webster / CC BY-SA 3.0 – License / Original