The Walnut neighborhood in Waterloo, Iowa, currently exhibits a Moderate Diversity profile with a White plurality of 52% in 2022. This area has experienced significant demographic shifts over the past decade, transitioning from a White majority to its current more diverse composition. The neighborhood is characterized by relatively low median incomes, with the 2022 figure at $17,533. Walnut is noted for its historical significance in Waterloo, featuring several preserved buildings from the early 20th century that reflect the city's industrial heritage.

The Walnut neighborhood has undergone a notable transformation in its racial composition over the past decade. In 2013, the area had a White Majority with 57% of the population identifying as White. By 2022, this had shifted to a Moderate Diversity classification with a White plurality of 52%. This transition is marked by a decline in the White population from 57% in 2013 to 52% in 2022, fluctuation in the Black population which peaked at 41% in 2019 before declining to 31% in 2022, and a significant increase in the Hispanic population from 5% in 2013 to 13% in 2022. These shifts suggest that Walnut is becoming a Transitional Community, with increasing diversity driven primarily by growth in the Hispanic population.

The neighborhood's economic trajectory has been volatile but generally positive over the decade. Median income increased from $13,804 in 2013 to $17,533 in 2022, a 27% rise. Despite this growth, incomes remain low compared to national averages. The population has decreased from 486 in 2013 to 401 in 2022, a 17.5% decline. The increasing diversity coincides with a modest improvement in median incomes, suggesting that new residents may be contributing to economic growth. However, the population decline indicates potential challenges in retaining residents or attracting new ones.