The median income in Caledonia has fluctuated over the past decade. It peaked in 2016 at $71,796, experienced a significant decline from 2018 to 2019, dropping from $64,869 to $57,946, and has shown a modest recovery since 2019, with the 2022 median income at $60,289. The period of highest median income (2015-2017) coincided with the highest population figures, suggesting a possible correlation between economic prosperity and population growth.

The population has decreased from 3,215 in 2013 to 2,554 in 2022, a decline of about 20%. This significant population loss could be related to economic factors, as the median income has also decreased over this period.

The persistent lack of diversity in Caledonia contrasts with national trends towards increasing racial diversity in many areas of the United States. The median income has generally remained below the national median, which was around $67,521 in 2020, suggesting that Caledonia faces some economic challenges compared to the national average. The population decline observed in Caledonia is a trend seen in many rural and small-town areas across the Midwest, often associated with economic shifts and urbanization.

Caledonia presents a picture of a stable, predominantly white community with low diversity. While there are hints of very slow diversification, the area has not undergone significant demographic shifts over the past decade. The community has faced economic challenges, as evidenced by fluctuating and generally declining median incomes and a significant population decrease. These trends suggest that Caledonia may be experiencing challenges common to many small, rural Midwestern communities, including economic pressures and population loss, potentially due to limited economic opportunities or changing preferences for urban living among younger generations.