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Troy, NC: Rising Home Values and Shifting Ownership Trends in a Small Town
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, located in North Carolina, is a small community with a population of 5,411 as of 2022. The city has experienced fluctuations in homeownership rates and housing prices over the past decade. This analysis will explore the trends in ownership versus renting and their relationship to average housing and rent prices.
From 2013 to 2022, Troy saw a slight decline in homeownership rates, dropping from 63% to 61%. During this same period, average home prices rose steadily from $93,304 in 2013 to $182,883 in 2022, representing a substantial 96% increase. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.40%), homeownership in Troy remained relatively stable around 60-63%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates fluctuated, reaching a low of 58% in 2017 before recovering to 64% by 2019. This recovery coincided with a brief dip in interest rates to 0.38% in 2020, potentially making mortgages more affordable.
Renter percentages in Troy have shown an inverse relationship to homeownership rates, naturally. The proportion of renters increased from 37% in 2013 to a peak of 42% in 2017, before settling at 39% in 2022. Interestingly, average rent prices have not followed a consistent upward trend like home prices. Rent prices fluctuated significantly, peaking at $647 in 2015 before dropping to a low of $463 in 2019. By 2022, the average rent had risen to $585, still below the 2015 peak. These fluctuations in rent prices may be influenced by local economic factors and housing supply changes.
In 2023 and 2024, Troy's housing market continued to show growth. The average home price reached $194,250 in 2023 and further increased to $201,031 in 2024. This represents a 9.9% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Looking ahead, based on the historical trends and current market conditions, we can project continued growth in average home prices for Troy over the next five years. Assuming a conservative annual growth rate of 5%, average home prices could reach approximately $256,000 by 2029. Rent prices, which have been more volatile, may stabilize and increase moderately, potentially reaching around $650-$700 per month by 2029, assuming a 2-3% annual increase.
In summary, Troy has experienced a gradual shift towards renting, with homeownership rates declining slightly as home prices have risen substantially. The interplay between federal interest rates, home prices, and homeownership rates highlights the complex dynamics of the local housing market. Despite fluctuations in rent prices, the overall trend suggests a growing demand for rental properties. As the community continues to evolve, these housing trends will play a crucial role in shaping Troy's future demographic and economic landscape.
