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Troy, Missouri: Rising Home Values and Steady Ownership in a Growing Mississippi River City
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, Missouri, located in Lincoln County, is a growing city with a population that has steadily increased over the past decade. Known for its historic downtown and proximity to the St. Louis metropolitan area, Troy has experienced significant changes in its housing market and demographic composition. The city has seen a general trend of increasing homeownership rates, rising average home prices, and fluctuating average rent prices over the years.
The homeownership rate in Troy has shown a slight upward trend from 2013 to 2022. In 2013, 72% of housing units were owner-occupied. This figure dipped slightly to 69% in 2015 and 2016 but rebounded to 73% by 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price in Troy was $142,957. By 2022, this figure had nearly doubled to $270,726, representing an impressive 89.4% increase over nine years. This upward trend in both homeownership rates and home prices suggests a strong demand for housing in Troy, possibly driven by its growing population and desirability as a residential area.
The relationship between federal interest rates and homeownership rates in Troy follows a typical pattern. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates experienced a slight decline from 72% to 69%. However, as interest rates began to rise more significantly from 2016 onwards, reaching 1.68% in 2022, homeownership rates in Troy actually increased to 73%. This counterintuitive trend might be explained by other local factors such as job growth or improvements in the local economy that outweighed the impact of rising interest rates.
Renter percentages in Troy have remained relatively stable, fluctuating between 27% and 31% from 2013 to 2022. The average rent prices, however, have shown a general upward trend. In 2013, the average rent was $853 per month. This figure increased to $999 by 2019, representing a 17.1% increase over six years. Interestingly, average rent prices continued to rise in 2020 and 2021, reaching $1,003, before slightly decreasing to $966 in 2022. This overall increase in rent prices, coupled with the city's population growth from 15,260 in 2013 to 18,574 in 2022, suggests a strong rental market in Troy.
In 2023, the average home price in Troy reached $278,411, continuing the upward trend seen in previous years. This represents a 2.8% increase from 2022. Moving into 2024, the average home price has further increased to $285,443, a 2.5% rise from 2023. Notably, federal interest rates have also seen significant increases, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership trends and housing affordability in Troy.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Troy will likely continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. A conservative estimate would put the average home price around $320,000 to $340,000 by 2029. Average rent prices may also continue their upward trajectory, potentially reaching $1,100 to $1,200 per month by 2029, assuming the city's population growth and economic development persist.
In summary, Troy, Missouri has experienced significant growth in its housing market over the past decade. The city has seen a trend towards increased homeownership, substantial appreciation in home values, and generally rising rent prices. These trends, coupled with the city's population growth, suggest a robust and desirable housing market in Troy. However, the recent sharp increases in interest rates may introduce new dynamics to the market in the coming years, potentially affecting affordability and homeownership rates.
