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Dalton, Minnesota: Stable Homeownership Amidst Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Dalton, Minnesota, is a small community with a population of 1,425 as of 2022. This charming city has experienced notable trends in homeownership rates and housing prices over the past decade. The city has maintained a consistently high rate of owner-occupied housing, while average home prices have shown a steady increase.
Homeownership in Dalton has remained remarkably stable, with a slight increase from 91% in 2013 to 93% in 2022. This high rate of owner-occupied housing has persisted despite significant changes in average home prices. In 2012, the average home price in Dalton was $159,733. By 2022, this figure had nearly doubled to $300,911, representing an impressive 88.4% increase over a decade. This trend suggests that despite rising home prices, residents of Dalton have continued to prioritize homeownership.
The relationship between federal interest rates and homeownership rates in Dalton appears to follow the well-established trend of lower interest rates encouraging homeownership. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates in Dalton remained high at 91%. Even as interest rates began to rise in 2017 and 2018, reaching 1.83%, homeownership rates in the city held steady at 91%, indicating a strong desire for homeownership among residents despite changing economic conditions.
Renter percentages in Dalton have remained consistently low, mirroring the high homeownership rates. The percentage of renters decreased from 9% in 2013 to 7% in 2022. Despite this decrease in the renter population, average rent prices have shown a significant increase. In 2013, the average rent was $434, which rose to $736 by 2022, representing a 69.6% increase. This substantial rise in rent prices, coupled with the decrease in renter percentage, suggests that while fewer people are renting, those who do are paying considerably more.
Looking at the most recent data, the average home price in Dalton reached $310,835 in 2023 and further increased to $316,758 in 2024. This represents a continued upward trend in housing prices. Concurrently, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Based on the historical data and current trends, we can forecast the following 5-year trends for Dalton: 1. Average home prices are likely to continue their upward trajectory, potentially reaching around $350,000 to $375,000 by 2029. 2. Average rent prices may also continue to rise, possibly reaching $800 to $850 per month by 2029. 3. Homeownership rates are expected to remain high, potentially stabilizing around 92-94%. In summary, Dalton has demonstrated a strong preference for homeownership, maintaining high rates despite significant increases in housing prices. The city has seen substantial growth in both average home prices and rent prices over the past decade. While homeownership rates have remained stable, the rising costs of both owning and renting may present challenges for future affordability in the city. The recent spike in interest rates could potentially impact these trends in the coming years, making it an important factor to monitor in Dalton's housing market.
