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Troy, NH: Rising Home Values and Steady Ownership in a Small Community
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, New Hampshire, is a small community that has experienced notable shifts in its housing market over the past decade. The city has maintained a relatively high rate of homeownership, with average home prices showing a significant upward trend, particularly in recent years. Meanwhile, average rent prices have also increased, albeit at a more moderate pace.
Homeownership rates in Troy have fluctuated but remained predominantly high, ranging from 69% to 75% between 2013 and 2022. During this period, average home prices demonstrated a substantial increase. In 2010, the average home price was $140,764, which rose steadily to reach $260,537 by 2022, representing an impressive 85% increase over 12 years. This trend suggests a strong correlation between rising home values and sustained high homeownership rates in the area.
The relationship between federal interest rates and homeownership rates in Troy appears to follow the general trend observed nationwide. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates in Troy remained stable at around 70%. As interest rates began to rise more significantly from 2017 onwards, there was a slight increase in homeownership, peaking at 75% in 2017 before stabilizing at 73% from 2018 to 2021. This suggests that while low interest rates may have initially supported homeownership, other local factors likely played a role in maintaining high ownership rates even as interest rates increased.
Renter percentages in Troy have generally been the inverse of homeownership rates, ranging from 25% to 31% between 2013 and 2022. Average rent prices have shown an overall upward trend during this period. In 2013, the average rent was $902, which increased to $1,070 by 2022, representing an 18.6% increase over nine years. This rise in rent prices occurred despite fluctuations in the city's population, which peaked at 2,330 in 2015 before declining to 1,889 in 2022. The moderate increase in rent prices, compared to the more substantial rise in home prices, may have contributed to maintaining a relatively stable renter population in the community.
In 2023 and 2024, Troy experienced a continued surge in average home prices. The average home price reached $284,362 in 2023 and further increased to $290,797 in 2024, representing a 9.2% and 11.6% increase from 2022, respectively. This rapid appreciation occurred despite federal interest rates rising significantly to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to cool the housing market.
Looking ahead, predictive models suggest that average home prices in Troy may continue to rise over the next five years, albeit at a potentially slower rate due to the higher interest rate environment. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall appreciation of real estate in the area. However, the rate of increase for both home prices and rents may moderate compared to the rapid growth seen in recent years.
In summary, Troy has demonstrated a resilient housing market characterized by consistently high homeownership rates and steadily increasing property values. The community has weathered changes in interest rates and population fluctuations while maintaining a strong real estate market. The recent acceleration in home price appreciation, even in the face of rising interest rates, underscores the desirability of the area and suggests a positive outlook for property values in the coming years.
