RMG Appraisers real estate analysts and consultants
| Region Overview |
| The cities of Shasta Lake, Redding, and Anderson form the central Shasta County corridor centralizing commercial, industrial, and cultural centers for the entire north state, including all surrounding counties. The time period from 2002-2005 saw demand pressures at a ten-year high throughout the region. Beginning in 2006, both prices and demand have slowed, and in some cases values have declined. |
| Environment Redding, the county seat, is located at the northern end of the Sacramento River Valley, enclosed by the Sierra Nevada mountain range to the East and the Klamath/Trinity ranges to the North and West. As a geographic reference, the city is 145 miles north of Sacramento and 157 miles south of Medford, Oregon. Two dramatic mountain peaks, the Southernmost of the Cascade volcanoes, (Mount Shasta at 14,194 ft. and Lassen Peak at 10,457 ft.) dominate the horizon. The Sacramento River, California’s largest and longest river, runs through the center of Redding as it flows south toward the San Francisco Bay. Shasta County comprises 3,847.60 square miles of rugged, scenic landscape and a population of nearly 182,000 concentrated within its central-valley flat lands. While the population of the Redding Metropolitan Area continues to increase (89,193 as of 1-1-2005, California Dept. of Finance), there are still many un-crowded and pristine recreational resources within a short distance of the city center. Large lakes such as Lake Shasta, north of Redding, and Whiskeytown Lake to the west, are excellent boating or fishing locations. Vast areas of land in the county remain under government ownership regulated by both Federal and State of California agencies. |
| In every appraisal report, we include the property's regional overview. This gives the client an understanding of the outlying factors affecting the value of the property. Below is the Region Overview for Shasta County. |
| Population The centers of commerce and industry for Shasta County are Redding and its neighboring cities of Shasta Lake (pop. 10,279 as of 01/08) and Anderson (pop. 10,579 as of 01/08). All are located alongside busy Interstate 5, the West Coast’s 1,500- mile primary highway connecting Southern California and Mexico to the Pacific Northwest and Canada. According to California State Dept. of Finance projections, Shasta County and Redding will continue to grow at a rate of 1.5% (as during the last decade) annually during the next ten to fifteen years. By the year 2015, Shasta County’s population should be greater than 200,000 and the City of Redding approximately 105,000 (approximately half of the county’s total). State Department of Finance indicates that Shasta County as a whole grew 0.5% last year while the City of Redding also grew 0.5%. The City of Anderson saw a 0.1% decrease in population which is a break from its previously fast growth spurt, but it still is the second largest incorporated city in Shasta County. |
Government
Elected councils from which members rotate to serve as mayor govern all three incorporated cities. Anderson and Redding
maintain their own governing agencies, such as planning, police, and fire departments. However, Shasta Lake City differs in
that it contracts with Shasta County for its police force. The County has a full range of governing agencies responsible for
providing health, legal and social services.
Transportation
Redding straddles California’s major North-South transportation corridor, with both Interstate 5 and the Union-Pacific Railway
dividing the city. In addition, the two major state highways to the coastal city of Eureka (Highway 299) and East through the
Sierras to Nevada (Highway 44) both connect in central Redding. Redding Municipal Airport serves as the region’s
commercial airline center. Amtrak has daily rail service to Redding on the Coast Starlight to and from Seattle/Los Angeles.
And Greyhound Bus Lines has a terminal in the center of the city with routes connecting in surrounding cities both to the
north and south.
Elected councils from which members rotate to serve as mayor govern all three incorporated cities. Anderson and Redding
maintain their own governing agencies, such as planning, police, and fire departments. However, Shasta Lake City differs in
that it contracts with Shasta County for its police force. The County has a full range of governing agencies responsible for
providing health, legal and social services.
Transportation
Redding straddles California’s major North-South transportation corridor, with both Interstate 5 and the Union-Pacific Railway
dividing the city. In addition, the two major state highways to the coastal city of Eureka (Highway 299) and East through the
Sierras to Nevada (Highway 44) both connect in central Redding. Redding Municipal Airport serves as the region’s
commercial airline center. Amtrak has daily rail service to Redding on the Coast Starlight to and from Seattle/Los Angeles.
And Greyhound Bus Lines has a terminal in the center of the city with routes connecting in surrounding cities both to the
north and south.
Agriculture
According to the USDA Agriculture Census data, there were approximately 1,126 farms consisting of 333,828 acres in Shasta
County in 2002. A 2007 census report will be released in February 2009. The majority of agricultural activity tends to be
located in the Sacramento Valley floor in the south central portion of Shasta County. Small pockets of pasture lands exist
throughout the county, including the mountainous regions. The largest use of agricultural land based on value of production
is by cattle stockers and feeders, followed by nursery and strawberry plants. Hay and “other” is the third largest use.
Approximately 13.1% of Shasta County land is devoted to some type of agricultural use.
According to the USDA Agriculture Census data, there were approximately 1,126 farms consisting of 333,828 acres in Shasta
County in 2002. A 2007 census report will be released in February 2009. The majority of agricultural activity tends to be
located in the Sacramento Valley floor in the south central portion of Shasta County. Small pockets of pasture lands exist
throughout the county, including the mountainous regions. The largest use of agricultural land based on value of production
is by cattle stockers and feeders, followed by nursery and strawberry plants. Hay and “other” is the third largest use.
Approximately 13.1% of Shasta County land is devoted to some type of agricultural use.
Employment
The following table illustrates annual unemployment rates as stated by Department of Finance for Shasta County. 2004
data was provided by the Employment Development Department.
The following table illustrates annual unemployment rates as stated by Department of Finance for Shasta County. 2004
data was provided by the Employment Development Department.
Economic Forces
In the table that follows, we listed historical new single-family housing permits and multi-family permits for Anderson,
Shasta Lake, and Redding. Statistics were compiled by www.huduser.com, a division of Housing and Urban Development.
In the table that follows, we listed historical new single-family housing permits and multi-family permits for Anderson,
Shasta Lake, and Redding. Statistics were compiled by www.huduser.com, a division of Housing and Urban Development.
Single-family development in Redding has fluctuated over the past seven years. Year 2005 set the peak for the market
cycle in single-family development. Multi-family development peaked during the same year. Market activity in Anderson
was already slowing in 2005, and has retreated drastically with no permits yet pulled in 2008. Shasta Lake City does not
segregate between permit types, but obviously is experiencing rapid decrease in permit issuance. Unincorporated Shasta
County completes the overall residential market segment as rural areas are also in rapid decline. All of Shasta County saw
a 39.2% decrease for 2006, followed by another 38.3% decrease for 2007. During the same timeframe, the city of
Redding saw decreases of 50.3% for 2006 and 47.2% for 2007. Overall, building permit issuance has fallen 62.5% in
Shasta County and 73.8% for the city of Redding since 2005.
cycle in single-family development. Multi-family development peaked during the same year. Market activity in Anderson
was already slowing in 2005, and has retreated drastically with no permits yet pulled in 2008. Shasta Lake City does not
segregate between permit types, but obviously is experiencing rapid decrease in permit issuance. Unincorporated Shasta
County completes the overall residential market segment as rural areas are also in rapid decline. All of Shasta County saw
a 39.2% decrease for 2006, followed by another 38.3% decrease for 2007. During the same timeframe, the city of
Redding saw decreases of 50.3% for 2006 and 47.2% for 2007. Overall, building permit issuance has fallen 62.5% in
Shasta County and 73.8% for the city of Redding since 2005.
Regional Overview Reconciliation
Shasta County’s population is projected by services using historical data at 1% to 1.5% per year. The latest economic
indicators show no growth, and in some cases significant decline. Real time factors warrant curbing forecasted growth by
60 percent or more. Unemployment has been running approximately 2% higher than that of the state for the past three
years, but recently the gap has widened significantly. New building permits have declined over 62% over the past two
years. These factors portray a shrinking building cycle with declining market prices inevitable in Shasta County. Overall,
the real estate economic sector is seeing rapid decline in the residential segment and stagnation is occurring in the
commercial segments. These regional trends align with the recessionary economy.
Shasta County’s population is projected by services using historical data at 1% to 1.5% per year. The latest economic
indicators show no growth, and in some cases significant decline. Real time factors warrant curbing forecasted growth by
60 percent or more. Unemployment has been running approximately 2% higher than that of the state for the past three
years, but recently the gap has widened significantly. New building permits have declined over 62% over the past two
years. These factors portray a shrinking building cycle with declining market prices inevitable in Shasta County. Overall,
the real estate economic sector is seeing rapid decline in the residential segment and stagnation is occurring in the
commercial segments. These regional trends align with the recessionary economy.
| 1411 Yuba Street, Redding, California 96001 Phone: (530) 246-1635 Fax: (530) 246-1881 Email: info@rmgappraisers.com |
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