Clio, a small city in Alabama covering 10.07 square miles, has experienced significant changes in its housing market and homeownership rates over the past decade. From 2013 to 2022, Clio witnessed a notable shift in its homeownership landscape. The percentage of owner-occupied homes decreased from 76% in 2013 to 58% in 2022, indicating a substantial move towards renting. This trend coincided with changes in average home prices, which saw a significant increase from $78,827 in 2016 to $117,592 in 2022, representing a 49% rise over six years.

The relationship between federal interest rates and homeownership rates in Clio appears to follow general economic principles. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, the city initially maintained relatively high homeownership rates. However, despite these low rates, Clio experienced a gradual decline in homeownership, suggesting that other local factors were influencing housing decisions.

Conversely, the renter population in Clio grew substantially, with the percentage of renter-occupied homes increasing from 24% in 2013 to 42% in 2022. This shift occurred alongside fluctuations in average rent prices. The average rent in Clio rose from $441 in 2013 to a peak of $553 in 2016, before settling at $423 in 2022. The population during this period remained relatively stable, increasing slightly from 3,323 in 2013 to 3,306 in 2022, indicating that the rental market growth was not primarily driven by population increase but rather by a shift in housing preferences or economic conditions.