Southwest Minnesota Growth Driven by Immigration
Regional data presented in Willmar shows population gains in several towns even as household purchasing power declines.
Updated on Nov. 14, 2026 in Regional Economics
Live Poll
Do you think your community is getting better or worse for households?
The Southwest Initiative Foundation presented regional demographic data in Willmar on November 5, 2025, showing population and economic growth in Willmar, Worthington and Marshall. Over the past 15 years, population growth across the region has been driven entirely by residents of color.
Why it matters
The region's total population is stagnant at about 280,000 and average household income, adjusted for inflation, is roughly $3,000 lower than in 2020. Local growth in a few communities is not offsetting declining purchasing power across southwest Minnesota.
The regional population is about 280,000, with one in five residents a person of color and 64,000 residents aged 65 and older. The median household income is $74,600 a year, while the poverty rate is 9%.
The players
Southwest Initiative Foundation
A regional nonprofit that works on economic and community development across southwest Minnesota, and the organization that presented this demographic study.
The details
Population growth in Kandiyohi and Nobles counties is largely due to in-migration and higher birth rates, while Meeker County is seeing some in-migration that offsets a lower birth rate. Residents are also moving from rural areas to larger communities within the region, and one in five people report delaying health care access.
Timeline
Over the past 15 years, population growth in the region has been driven entirely by residents of color.
The average household income in 2020 served as the baseline for the current $3,000 decline.
On November 5, 2025, the Southwest Initiative Foundation presented the data in Willmar.
In 15 years, one in four residents is projected to be a person of color.
Regional Economics
The growth of Willmar, Worthington and Marshall through immigration follows a pattern seen in several Minnesota regional economies where new residents offset stagnant overall population. The region's flat population and falling inflation-adjusted incomes suggest that this pattern alone has not translated into broader economic gains.
Households across southwest Minnesota are working with lower inflation-adjusted incomes than in 2020, and one in four households is considered cost burdened for housing. Residents who are seniors make up 26% of the population, and a quarter of residents cannot afford to buy a home.
The takeaway
The region's future depends on whether immigration-driven growth can translate into rising household incomes and affordable housing. Readers tracking local economies should watch whether purchasing power stabilizes in the coming years.
Further reading
For more on how regional economic trends are shaping communities, explore Regional Economics coverage across Minnesota.
Source note: This article includes information reported by West Central Tribune.
Live Poll
Do you think your community is getting better or worse for households?
