Potlatch, a small city in Idaho with a population of 860 in 2022, has experienced notable fluctuations in its housing market over the past decade. The homeownership rate in Potlatch has shown a general decline from 2013 to 2019, followed by a significant rebound. In 2013, 78% of residents owned their homes, but this figure dropped to 68% by 2019. However, there was a sharp increase to 79% by 2021, indicating a renewed interest in homeownership. From 2014 to 2022, average home prices in Potlatch rose steadily from $156,544 to $263,432, a substantial 68% increase. This suggests that despite rising prices, local residents found ways to enter the housing market, possibly due to other economic factors or local initiatives.

Federal interest rates play a crucial role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, hovering between 0.09% and 2.16%. This period coincided with the initial decline and subsequent rebound in homeownership rates in Potlatch. The low interest rates likely made mortgages more accessible, contributing to the increase in homeownership from 68% in 2019 to 79% in 2021.

Renter percentages in Potlatch have generally mirrored the inverse of homeownership rates. The proportion of renters increased from 22% in 2013 to a peak of 32% in 2017 and 2019, before declining to 21% in 2021. Average rent prices have fluctuated during this period, ranging from a low of $610 in 2021 to a high of $725 in 2022. Interestingly, the highest average rent coincided with a lower percentage of renters (22% in 2022), suggesting that increased rental costs may have pushed some residents towards homeownership.