The rental market in Caledonia has shown some fluctuations over the years. The percentage of renters increased from 14% in 2013 to 18% in 2022, indicating a gradual shift towards renting. Average rent prices have also experienced changes, with some volatility. In 2013, the average rent was $583, which increased to a peak of $752 in 2018 before declining to $622 in 2022. This represents a 6.7% increase in average rent over the nine-year period, despite some intervening fluctuations.

Looking at the most recent data, we see that in 2023, the average home price in Caledonia reached $214,074, a further increase from 2022. This upward trend continued into 2024, with average home prices rising to $220,150. Concurrently, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing affordability in the area.

Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Caledonia will continue to rise, albeit at a more moderate pace. Based on the recent growth rates, we project that by 2029, average home prices could reach approximately $250,000 to $260,000. For rent prices, we expect a gradual increase, potentially reaching an average of $700 to $750 per month by 2029, assuming current economic conditions and local market factors remain relatively stable.

In summary, Caledonia has maintained a high rate of homeownership despite rising home prices and increasing interest rates. The rental market has seen a slight increase in the proportion of renters, with average rent prices showing moderate growth over time. The continued rise in home prices, coupled with higher interest rates, may present challenges for potential homebuyers in the coming years, potentially leading to a slight shift towards renting. However, the strong preference for homeownership in this community suggests that demand for owned homes is likely to remain robust.