Loading Content...
Troy, Illinois: Rising Home Values and Stable Ownership in a Vibrant Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Troy, Illinois is a vibrant city located in Madison County, known for its family-friendly atmosphere and excellent school system. Over the past decade, Troy has experienced significant growth and changes in its housing market, with notable trends in homeownership rates, average home prices, and average rent prices. Homeownership rates in Troy have remained relatively stable, with a slight increase over the years. In 2013, the homeownership rate was 78%, and by 2022, it had risen to 83%. This upward trend coincides with a substantial increase in average home prices. In 2013, the average home price in Troy was $178,923, and by 2022, it had risen to $277,659, representing a 55% increase over nine years. This positive correlation suggests that despite rising home prices, Troy residents have maintained a strong desire for homeownership.
The relationship between federal interest rates and homeownership rates in Troy shows an interesting pattern. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates fluctuated slightly between 77% and 79%. As interest rates began to rise more significantly from 2017 to 2019 (1% to 2.16%), homeownership rates remained stable at around 77-78%. Interestingly, when interest rates dropped sharply in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates in Troy increased to 80%, suggesting that the lower interest rates may have encouraged more residents to purchase homes.
Renter percentages in Troy have shown a slight decrease over the years, from 22% in 2013 to 17% in 2022. Despite this decrease, average rent prices have experienced some fluctuations. In 2013, the average rent was $1,124, which decreased to $941 in 2017 before rising again to $1,033 in 2022. The population growth from 14,191 in 2013 to 15,160 in 2022 may have contributed to the overall increase in rent prices, despite the lower percentage of renters.
Looking at the most recent data, the average home price in Troy continued to rise in 2023, reaching $288,416, and further increased to $299,292 in 2024. This represents a 7.8% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and could potentially slow down the rate of home price appreciation in the near future.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Troy will continue to rise, albeit at a potentially slower pace due to higher interest rates. We project average home prices could reach approximately $335,000 to $350,000 by 2029. For average rent prices, we expect a moderate increase, potentially reaching $1,150 to $1,200 per month by 2029, assuming continued population growth and economic stability in the area.
In summary, Troy, Illinois has demonstrated a strong and growing homeownership market over the past decade, with rising home prices and a slight increase in homeownership rates. The rental market has seen some fluctuations but remains a smaller portion of the housing landscape. The recent sharp increase in interest rates may impact future housing trends, potentially moderating the rapid growth in home prices. Despite these challenges, Troy's housing market appears to remain robust, reflecting the city's desirability and continued growth.
