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Troy, NY Zip Code 12180: Average Home Values Rise 51.4% in a Decade
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 York, zip code 12180, is a vibrant city with a rich industrial history and a growing population. Over the past decade, this area has experienced notable shifts in homeownership rates and housing costs, reflecting broader economic trends and local market dynamics.
The homeownership rate in Troy has shown a slight decline from 2013 to 2022. In 2013, 46% of housing units were owner-occupied, while by 2022, this figure had decreased to 45%. This trend coincides with a significant increase in average home prices. In 2013, the average home price was $164,588, which rose steadily to reach $249,224 by 2022, representing a substantial 51.4% increase over this period. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Troy. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1-0.13%. During this time, homeownership rates remained stable at 46%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% by 2022, we observed a slight decrease in homeownership rates to 45%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Conversely, the percentage of renters in Troy has increased from 52% in 2013 to 55% in 2022. This shift corresponds with a rise in average rent prices, which grew from $932 in 2013 to $1,040 in 2022, an 11.6% increase. The population of Troy also grew during this period, from 52,652 in 2013 to 54,276 in 2022, potentially contributing to increased demand for rental properties and higher rent prices.
In 2023 and 2024, Troy's housing market continued to evolve. The average home price in 2023 reached $259,807, further climbing to $270,274 in 2024. This represents a 4.2% year-over-year increase from 2023 to 2024. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Looking ahead, predictive models suggest that average home prices in Troy may continue to rise over the next five years, potentially reaching around $300,000 by 2029 if current trends persist. Average rent prices are also expected to increase, potentially surpassing $1,200 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Troy's housing market has experienced significant changes over the past decade, characterized by rising home prices, increasing rent costs, and a slight shift towards renting over homeownership. The interplay between federal interest rates, population growth, and housing costs has shaped these trends, creating a dynamic and evolving real estate landscape in zip code 12180.
