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Troy, Zip Code 83871: Home Values Double 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, located in zip code 83871 in Idaho, has experienced notable changes in its housing market over the past decade. This small city has seen fluctuations in homeownership rates and significant increases in average home prices, while average rent prices have shown a more volatile pattern.
The homeownership rate in Troy has remained relatively high, fluctuating between 82% and 88% from 2013 to 2022. This strong preference for homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $222,841, which rose consistently year over year, reaching $462,987 by 2022. This represents a substantial 107.8% increase over the nine-year period. The peak in homeownership occurred in 2020 at 88%, coinciding with a period of historically low federal interest rates, which dropped to 0.38% that year.
The relationship between federal interest rates and homeownership rates in Troy demonstrates the typical inverse correlation. As interest rates remained low, particularly from 2013 to 2020 (ranging from 0.09% to 0.38%), homeownership rates stayed high, generally above 82%. This trend aligns with the principle that lower interest rates make mortgages more affordable, encouraging home purchases.
Renter percentages in Troy have remained relatively low, ranging from 12% to 18% between 2013 and 2022. Average rent prices have shown more volatility compared to home prices. In 2013, the average rent was $808, which decreased to $666 by 2020, before sharply increasing to $897 in 2021, and then dropping again to $665 in 2022. This volatility in rent prices doesn't show a clear correlation with the percentage of renters, suggesting other factors, such as local economic conditions or housing supply, may have more influence on rental rates in this area.
In 2023, the average home price in Troy slightly decreased to $455,277, marking a 1.7% drop from the previous year. This slight correction comes after years of consistent growth. Moving into 2024, the average home price has rebounded to $470,194, showing a 3.3% increase from 2023. It's worth noting that federal interest rates have significantly increased to 5.33% in 2024, which could potentially impact future homeownership trends and home prices.
Looking ahead, based on historical trends and current market conditions, we can anticipate continued growth in average home prices in Troy, albeit at a potentially slower rate due to higher interest rates. A conservative estimate suggests average home prices could reach around $520,000 to $550,000 within the next five years. Average rent prices, given their historical volatility, are more challenging to predict. However, if the trend of the past few years continues, we might expect average rents to fluctuate between $700 and $950 over the next five years.
In summary, Troy's housing market is characterized by high homeownership rates and steadily increasing average home prices. The recent uptick in federal interest rates may moderate future home price growth and potentially impact homeownership rates. The rental market remains a smaller segment of the housing landscape, with more volatile pricing trends that warrant close observation in the coming years.
