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High Homeownership and Rising Home Values: A Look at Troy, Indiana Zip Code 47588
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
Troy, Indiana, zip code 47588, is a small community with a population of 158 as of 2022. This area has experienced notable fluctuations in homeownership rates and housing prices over the past decade. The zip code has maintained a consistently high rate of owner-occupied housing, with average home prices showing a steady upward trend, while average rent prices have varied.
The percentage of owner-occupied housing in zip code 47588 has remained predominantly high, ranging from 89% to 96% between 2013 and 2022. This strong preference for homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $90,510, which steadily rose to $152,167 by 2022, representing a 68% increase over this period. The most substantial year-over-year growth occurred between 2020 and 2021, with average home prices jumping from $120,138 to $136,600, a 13.7% increase in a single year.
Federal interest rates have played a role in shaping homeownership trends in Troy. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the high homeownership rates observed during this time. As interest rates began to rise more significantly from 2017 onwards, reaching 2.16% in 2019, the homeownership rate in zip code 47588 remained resilient, even increasing slightly to 95% in 2019.
The percentage of renter-occupied housing in zip code 47588 has remained relatively low, fluctuating between 2% and 9% from 2013 to 2022. Average rent prices have shown considerable volatility during this period. In 2013, the average rent was $691, which decreased to $572 in 2015 before rising to a peak of $826 in 2018. By 2022, the average rent had settled at $693, nearly identical to the 2013 level. These fluctuations in rent prices do not appear to correlate strongly with the minor changes in the renter population, suggesting that other factors, such as local economic conditions or housing availability, may have influenced rent prices more significantly.
In 2023 and 2024, the average home prices in zip code 47588 continued their upward trajectory, reaching $157,840 in 2023 and $160,963 in 2024. This represents a 3.7% increase from 2022 to 2023 and a further 2% increase from 2023 to 2024. Notably, these price increases occurred despite a significant rise in federal interest rates, which climbed to 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on the historical data and current trends, we can forecast potential 5-year trends for average home and rent prices in zip code 47588. Average home prices are likely to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. We might expect average home prices to reach approximately $180,000 to $190,000 by 2029. Average rent prices, which have shown more volatility, may stabilize or increase moderately, potentially reaching around $750 to $800 per month by 2029.
In summary, Troy's zip code 47588 has maintained a strong preference for homeownership despite rising home prices. The area has demonstrated resilience in its housing market, with consistent growth in average home values even in the face of fluctuating economic conditions. The rental market, while smaller, has shown more variability in pricing. As the community moves forward, it will be interesting to observe how these housing trends evolve, particularly in response to broader economic factors and local demographic changes.
