The city is at the junction of Interstates 35 and 90, about 90 miles south of the Twin Cities. It is on the shores of Fountain Lake, Pickerel Lake, Albert Lea Lake, Goose Lake, School Lake, and Lake Chapeau. Fountain Lake and Albert Lea Lake are part of the Shell Rock River flowage.
The city's early growth was based upon agriculture, farming support services and manufacturingand was a significant rail center. At one time it was the site of Cargill's headquarters. Other manufacturing included Edwards Manufacturing (barn equipment), Scotsman Ice Machines, Streater Store fixtures, and Universal Milking Machines. Like many U.S. towns much of the manufacturing base has diminished. A long-time center of the city's job opportunity was the Wilson & Company meat packing plant, later known as Farmstead and Farmland. This facility was destroyed by fire. The largest employer is currently Albert Lea Medical Center/Mayo with over 1,500 jobs.
As of the census of 2000, there were 18,356 people, 7,785 households, and 4,826 families residing in the city. The population density was 1,702.5 people per square mile (657.4/km²). There were 8,133 housing units at an average density of 754.3/sq mi (291.3/km²). The racial makeup of the city was 92.80% White, 0.37% African American, 0.29% Native American, 0.80% Asian, 0.03% Pacific Islander, 4.54% from other races, and 1.18% from two or more races. 9.48% of the population were Hispanic or Latino of any race.
Of the 7,785 households, 26.9% had children under the age of 18 living with them, 49.5% were married couples living together, 9.1% had a female householder with no husband present, and 38.0% were non-families. 33.0% of all households were made up of individuals and 16.8% had someone living alone who was 65 years of age or older. The average household size was 2.28 and the average family size was 2.88.
23.0% of Albert Lea's population were under the age of 18, 7.9% were 18 to 24, 24.6% were 25 to 44, 23.2% were from 45 to 64, and 21.3% were 65 years of age or older. The median age was 41 years. For every 100 females there were 90.2 males. For every 100 females age 18 and over, there were 87.6 males.
The median income for a household in the city was $32,841, and the median income for a family was $42,407. Males had a median income of $31,383 versus $21,114 for females. The per capita income for the city was $17,979. 10.2% of the population and 6.9% of families were below the poverty line. 10.6% of those under the age of 18 and 10.9% of those 65 and older were living below the poverty line.