RMG Appraisers real estate analysts and consultants
| Region Overview |
| 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. |
| 1411 Yuba Street, Redding, California 96001 Phone: (530) 246-1635 Fax: (530) 246-1881 Email: info@rmgappraisers.com |
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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,
and continuing through 2008, both prices and
demand have slowed, and in some cases values
have declined.
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,
and continuing through 2008, 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 (90,491 as of Jan. 1, 2008,
California Dept. of Finance), there are still many uncrowded and
pristine recreational resources within a short distance of the city
center. Large lakes such as Shasta Lake, 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 agencies.
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 (90,491 as of Jan. 1, 2008,
California Dept. of Finance), there are still many uncrowded and
pristine recreational resources within a short distance of the city
center. Large lakes such as Shasta Lake, 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 agencies.
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.
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, the City of
Shasta Lake 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, it is a hub for two major state highways; Highway 299, which goes west to the coastal
city of Eureka and east through Burney and Alturas, and Highway 44 which goes east through the Sierras to Nevada.
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 and Los Angeles. Also, 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, the City of
Shasta Lake 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, it is a hub for two major state highways; Highway 299, which goes west to the coastal
city of Eureka and east through Burney and Alturas, and Highway 44 which goes east through the Sierras to Nevada.
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 and Los Angeles. Also, 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.
Unemployment in California and Shasta County is rising at an unprecedented rate that will likely have negative
impacts in the short term and in the real estate marketplace. Although the average unemployment rate for Shasta
County for 2008 stands at 10.0%, the monthly rates for the last quarter of 2008 were all above the annual average,
peaking at 12.2% for the month of December. Disturbing to Shasta County’s future is that its differentiation above
the state average is widening, strongly suggesting our economy is worsening more severely than the state economy.
The following table illustrates annual unemployment rates as stated by Department of Finance for Shasta County.
Unemployment in California and Shasta County is rising at an unprecedented rate that will likely have negative
impacts in the short term and in the real estate marketplace. Although the average unemployment rate for Shasta
County for 2008 stands at 10.0%, the monthly rates for the last quarter of 2008 were all above the annual average,
peaking at 12.2% for the month of December. Disturbing to Shasta County’s future is that its differentiation above
the state average is widening, strongly suggesting our economy is worsening more severely than the state economy.
Economic Forces
In the table that follows, historical new single-family housing permits and multi-family permits for Anderson, Shasta
Lake, and Redding are listed. Statistics were compiled by www.huduser.org, a division of Housing and Urban
Development.
In the table that follows, historical new single-family housing permits and multi-family permits for Anderson, Shasta
Lake, and Redding are listed. Statistics were compiled by www.huduser.org, 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 only two new construction permits 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 deceases of 38.3% for 2007
and 47.3% for 2008. During the same timeframe, the city of Redding saw decreases of 50.3% for 2006 and 47.2%
for 2007. This decline in permits issued slowed to a 21.1% drop in 2008. Overall, building permit issuance has
fallen 76.8% in Shasta County and 79.3% for the city of Redding since 2005.
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 only two new construction permits 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 deceases of 38.3% for 2007
and 47.3% for 2008. During the same timeframe, the city of Redding saw decreases of 50.3% for 2006 and 47.2%
for 2007. This decline in permits issued slowed to a 21.1% drop in 2008. Overall, building permit issuance has
fallen 76.8% in Shasta County and 79.3% 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 76% over the
past three 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 76% over the
past three 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.