Key Takeaways

Key Takeaways Stable but Expensive: Troy's median home price hit $425,000 in 2026, requiring about $140,000 household income for comfortable affordability Selective Market: Higher interest rates mean well-priced homes still sell within 45 days, but overpriced or problem properties sit longer Limited New Construction: Most new building focuses on transit-oriented development and luxury homes, with new construction starting around $500,000 Strong Fundamentals: Excellent schools, diverse population, and stable employment make Troy one of Oakland County's most resilient markets

Troy, Michigan Real Estate 2026: What $400K Gets You in Oakland County's Crown Jewel

The Real Deal on Troy's Housing Market

Look, I've been watching the Troy market for years, and 2026 is telling an interesting story. While everyone's talking about Detroit's comeback, Troy has been quietly holding its own as one of Oakland County's most stable markets. The median home price just crossed $425,000 in February 2026 — up about 4% from last year — but here's what that number doesn't tell you.

Troy isn't just expensive because it's trendy. It's expensive because people actually want to live there long-term. I had a client last month who inherited a house in Troy, and even though it needed $30,000 in updates, three different investors were interested. That tells you something about the fundamentals of this market.

Affordability: The Real Numbers for 2026

Let's talk straight about affordability in Troy. With the current median home price at $425,000 and mortgage rates sitting around 6.8% in early 2026, you're looking at about $2,800 per month for principal and interest on a 20% down payment. Add in property taxes — which average about $8,500 annually in Troy — and you're at roughly $3,500 monthly total housing costs.

The household income needed to comfortably afford that? Around $140,000 annually. The good news is Troy's median household income sits at about $95,000, which means plenty of families are making it work, but they're stretching more than they used to.

Here's what I'm seeing at HOMESELL USA: more Troy homeowners calling us not because they're in foreclosure or facing major problems, but because they want to downsize without the hassle of listing. They bought when prices were lower, built up equity, and now they want to cash out and move somewhere more affordable. Smart move, honestly.

Mortgage Activity: What Lenders Are Seeing

Mortgage activity in Troy dropped about 15% compared to 2025, which mirrors what we're seeing across Oakland County. Higher interest rates are definitely cooling things down, but Troy's market is more resilient than most.

I've seen this a hundred times — when rates go up, the first thing that happens is buyers get pickier. In Troy, that means homes priced right and in good condition still sell within 45 days. But overpriced listings or houses that need work? They're sitting longer than they have in years.

One thing that's helping Troy homeowners: refinancing activity is almost zero, but purchase loans are still happening. Credit unions and local lenders are getting creative with down payment assistance programs, especially for first-time buyers looking at Troy's more affordable neighborhoods near the city borders.

New Construction: Limited but Strategic

Troy's not a new construction hotspot — there just isn't much land left. What new building is happening tends to be either luxury homes on larger lots or townhome developments filling in smaller parcels.

The big project everyone's watching is the continued development near the Troy Transit Center. About 150 new residential units are planned for 2026-2027, mostly targeting young professionals who want walkability and access to Detroit via transit. These aren't your typical Troy single-family homes — we're talking condos and townhomes starting around $350,000.

Here's the reality: new construction in Troy starts at about $500,000 for anything decent-sized. That's pushing some buyers toward older homes that need updates, which is where HOMESELL USA comes in. We've helped several Troy families who inherited older homes that would need $50,000+ in renovations to compete with new builds.

Population Growth: Steady but Selective

Troy's population has been remarkably stable — around 87,000 residents — with slight growth of about 1% annually. But here's what's interesting: the demographics are shifting. Young families are moving in, empty nesters are moving out, and there's a growing population of professionals working remotely who chose Troy for the schools and community feel.

The city's diversity continues to be a selling point. Troy has one of the most internationally diverse populations in Michigan, which creates interesting real estate dynamics. I've worked with families from all over the world who specifically sought out Troy for the cultural community and top-rated schools.

What This Means for Different Types of Homeowners

First-Time Buyers

If you're trying to break into Troy as a first-time buyer, focus on the areas near the border with Sterling Heights or Madison Heights. You'll find homes in the $350,000-$400,000 range that still give you Troy schools and amenities. Yes, you might need to do some updating, but the bones are usually solid.

Move-Up Buyers

The sweet spot for move-up buyers in Troy is the $450,000-$600,000 range. You're getting established neighborhoods, mature trees, and homes that don't need major work. Competition is still real in this price range, so be ready to move fast.

Downsizers and Empty Nesters

This is where I see the most opportunity — and the most confusion. Many Troy homeowners bought their houses 15-20 years ago for $200,000-$300,000. Now they're worth $400,000+, but these homeowners aren't sure how to capitalize on that equity without getting caught up in the traditional listing process.

The Investment Angle

Troy isn't typically thought of as an investor market, but I'm seeing more activity than usual. Rental demand is strong, especially for single-family homes near the business district. Properties that rent for $2,500-$3,200 per month are finding tenants quickly.

The challenge for investors is finding deals. Most Troy properties are well-maintained, so there aren't many obvious distressed situations. When we do find investment opportunities through HOMESELL USA, they tend to be estate sales or families who need to relocate quickly for work.

Looking Ahead: What to Expect

My prediction for Troy through the rest of 2026? Continued stability with modest growth. This isn't a market that's going to crash, but it's also not going to see the wild appreciation of 2021-2022.

The factors working in Troy's favor: excellent schools, diverse economy, good infrastructure, and strong community identity. The challenges: limited inventory, higher interest rates, and increasing property taxes.

Whether you're buying, selling, or just trying to figure out your next move, Troy remains one of the most solid markets in Metro Detroit. It's not the cheapest option, but it's proven its resilience over decades.

If you're dealing with a Troy property situation — whether it's an inheritance, a job relocation, or just ready for a change without the traditional real estate hassles — give Uncle Charles a call. I've been working in Oakland County for years, and I understand what makes Troy special. No pressure, no judgment — just straight answers about your options.

Frequently Asked Questions

Frequently Asked Questions About Troy Michigan Real Estate

What is the average home price in Troy, Michigan in 2026?

The median home price in Troy reached $425,000 in early 2026, representing about 4% growth from 2025. However, you can still find homes in the $350,000-$400,000 range near the city borders, while luxury properties and new construction typically start around $500,000.

Is Troy, Michigan a good place for first-time homebuyers?

Troy can work for first-time buyers, but you'll need a household income around $100,000+ to be comfortable. Focus on areas near Sterling Heights or Madison Heights borders for better pricing. The excellent schools and stable property values make it a solid long-term investment, even if the entry cost is higher.

How long do houses stay on the market in Troy?

Well-priced homes in good condition typically sell within 45 days in Troy's 2026 market. However, overpriced listings or properties needing significant updates are sitting longer than in previous years due to higher interest rates making buyers more selective.

What salary do you need to afford a house in Troy, Michigan?

For a median-priced home at $425,000, you'll need approximately $140,000 annual household income to comfortably afford the mortgage, taxes, and insurance. This assumes a 20% down payment and current interest rates around 6.8%. Many Troy residents make it work with lower incomes but have higher debt-to-income ratios.

Is Troy real estate a good investment in 2026?

Troy remains one of Metro Detroit's most stable markets with strong rental demand and consistent property values. While it's not a high-appreciation market, it offers steady growth and strong fundamentals. The challenge for investors is finding deals, as most properties are well-maintained and competitively priced.