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Rising Home Values and Shifting Ownership in Cleveland, Minnesota: A Decade of Change
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
Cleveland, Minnesota, is a small community that has experienced notable demographic and housing market changes over the past decade. The city has seen fluctuations in homeownership rates, with a general trend towards more renters in recent years. Average home prices have shown consistent growth, while average rent prices have varied.
The relationship between homeownership rates and average home prices in Cleveland presents an interesting dynamic. In 2013, the homeownership rate was 89%, with an average home price of $197,431. As average home prices steadily increased, reaching $259,174 in 2019, the homeownership rate remained relatively stable at 90%. However, a significant shift occurred between 2019 and 2022. Despite average home prices continuing to rise to $347,738 in 2022, the homeownership rate dropped to 74%. This suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates in Cleveland remained high, above 80%. However, as interest rates began to rise sharply in 2022 to 1.68% and further in 2023 to 5.02%, homeownership rates declined to 74% in 2022, indicating a potential correlation between higher interest rates and decreased homeownership.
The renter population in Cleveland has grown significantly in recent years. In 2013, only 11% of residents were renters, with an average rent of $808. By 2022, the renter percentage had more than doubled to 26%, while the average rent increased to $849. This trend suggests a growing demand for rental properties, potentially driven by the rising home prices and increased population, which grew from 822 in 2013 to 1,000 in 2022.
In 2023 and 2024, average home prices in Cleveland continued to rise, reaching $358,736 in 2023 and $365,233 in 2024. This represents a 5% increase from 2022 to 2024. Concurrently, federal interest rates remained high, at 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions.
Looking ahead, predictive models suggest that average home prices in Cleveland may continue to rise over the next five years, albeit at a potentially slower rate due to high interest rates. Average rent prices are also expected to increase, driven by the growing renter population and overall housing demand.
In summary, Cleveland has experienced a shift towards more renters, with homeownership rates declining despite rising home values. The interplay between federal interest rates, home prices, and rental demand has shaped the housing market dynamics in this small Minnesota community. As the population continues to grow, these trends are likely to evolve, potentially leading to further changes in the city's housing landscape.
