Looking at Housing in the Community

Vol. III, No. 33 - A recent presentation shows that there are serious concerns about the city's rental market and housing affordability

A few weeks ago, a gathering at the County Safety Building brought together dozens of residents from across Miami County to confront an uncomfortable truth about their community. The presentation by CountyCorp, a non-profit housing development agency from neighboring Montgomery County, painted a stark picture of housing affordability that has been quietly reshaping Troy's economic landscape. The conversation was helpful, though the grim assessment came as no surprise to those who have been watching the steady erosion of affordable housing options in their city. The presentation along with new housing developments that are currently being discussed within the community make the conversation about housing ripe for having right now.

The housing affordability crisis has emerged as one of the most pressing challenges facing Troy, where a significant portion of the workforce now finds themselves unable to secure adequate housing within their financial means. Data shared from COOHIO, the Coalition on Homeless and Housing in Ohio, revealed the depth of this challenge in stark numerical terms, showing a profound mismatch between what residents can afford and the current housing market realities. This disconnect has created a situation that demands immediate attention from community leaders who recognize that housing is not merely a social issue but an economic imperative that affects the entire community's long-term sustainability.

The Rental Market Reality

Troy's rental market presents a complex and troubling landscape characterized by significant price variations and rapidly escalating costs. Current data reveals that average rent ranges from $937 to $1,453 per month, depending on the source and methodology used, with Zillow reporting the most recent average rent at $1,453 as of June 2025, representing a substantial year-over-year increase of $2031. Meanwhile, Apartments.com indicates a lower average of $937 per month, which, while seemingly more affordable, still remains 42% lower than the national average, suggesting that even these "lower" rents may not reflect the full scope of housing costs, once utitlies are included.

The rental market demonstrates significant variation across property types and bedroom configurations, creating different pressure points for different household compositions. Studio apartments command rents ranging from $603 to $1,145 per month, while one-bedroom apartments average between $812 and $964 monthly. Two-bedroom units, which represent the largest share of the rental market at 46%, range from $1,038 to $1,410, followed by three-bedroom rentals that typically cost between $1,065 and $1,506 per month. Four-bedroom units reach the highest price points, with rents extending up to $2,101 monthly.

The Affordability Crisis Deepened

When measured against current typical rental prices, the affordability crisis becomes even more pronounced than previous analyses suggested. With average rents spanning from $937 to $1,453 per month and continuing upward pressure, nearly half of Troy's workforce finds themselves severely cost-burdened or completely excluded from the rental market. Workers in the extremely low income bracket, who represent roughly 22% of the workforce with incomes reaching only $27,990, can afford just $698 per month in rent, creating a monthly deficit ranging from $239 to $755 depending on which market average applies to their housing search.

The very low income segment, comprising 23% of workers earning between $27,991 and $46,900, faces their own significant challenges despite having a maximum affordable rent of $1,163 per month. While this group might access some lower-priced units in the current market, they would still face substantial challenges with the higher-end typical rents reported by various sources. The situation becomes particularly acute when considering that reports indicate roughly 45% of Troy rentals are priced between $1,000 and $1,500, placing tremendous pressure on moderate-income households who find themselves competing for a shrinking pool of affordable options.

Recent market trends have only exacerbated these challenges, with some sources reporting a staggering 23% year-over-year increase in apartment rents as of November 2024. Zumper indicates rent increases of 19% over the past year, with median rent reaching $1,2971. These rapid increases have far outpaced income growth for many residents, creating a widening gap between what people earn and what they must pay for basic shelter.

Homeownership: Dreams Deferred

The homeownership landscape presents equally daunting challenges for Troy's working families, with current home values averaging between $263,592 and $276,922 according to recent data, representing annual increases of 5.7% to 7.4%. The housing market has transformed into a highly competitive arena, earning a Redfin competition score of 79 out of 100, which indicates that many homes receive multiple offers and create bidding war scenarios that further disadvantage moderate-income buyers. Properties typically sell within just 23 days, often at or near list price, leaving little room for negotiation or careful financial planning. Compounding this issue is that the average age of a first-time homebuyer in Ohio is roughly 38 years old, most of these first-time homebuyers are entering middle-age before they have the financial ability to own their own home for the first time.

For the over 40% of Troy's workforce earning less than $46,900 annually, homeownership has moved from difficult to virtually impossible under current market conditions. Even workers in the low income bracket, those earning up to $75,050, face significant obstacles with maximum home purchase affordability of $223,266 falling well short of current average home prices. The median home sale price of $274,000 represents a 16.2% increase from the previous year, further widening the chasm between what workers can afford and actual market prices.

Community Demographics and Economic Impact

The income distribution among Troy's workforce reveals the true depth of the affordability crisis when measured against typical rental costs. According to the COOHIO data, a combined 45% of workers fall into the extremely low and very low income categories, while only 41% earn moderate to upper incomes, and just 8% achieve very high income status. This distribution creates a substantial base of workers who cannot afford market-rate housing without becoming severely cost-burdened, spending far more than the recommended 30% of their income on housing expenses.

According to the U.S. Census Bureau, Troy's housing composition shows that 35% of residents are renters occupying 3,796 units, while 65% are homeowners living in 7,078 properties1. The median renter household income of $47,854 falls significantly below what would be required to afford typical market rents without being cost-burdened. At this income level, affordable rent would be approximately $1,196 per month, which aligns with some but not all of the typical rental prices in the current market, creating a precarious situation for many families.

Regional Context and Market Forces

Troy's rental market operates within the broader Dayton-Kettering metropolitan context, where rental costs vary significantly by location and property type. Compared to nearby communities, Troy's rental prices fall in the middle range, with Tipp City averaging $1,420, Beavercreek at $1,398, and Kettering at $1,005. The regional rental vacancy rate of 7% indicates a relatively tight market with limited options for cost-conscious renters, creating additional pressure on an already strained system.

The typical rental market demonstrates considerable volatility, with monthly fluctuations ranging from $1,225 to $1,500 depending on seasonal factors and inventory levels. This variability creates additional challenges for renters seeking stable, affordable housing options, as they must navigate not only high costs but also unpredictable pricing patterns.

Property type variations add another layer of complexity to the housing challenge. Apartments average $1,273 per month, condos command $1,374, and houses require $1,699 monthly1. The average apartment size approximates 1,017 square feet, with rental rates averaging $1.43 per square foot. For families requiring larger accommodations, the challenges become even more pronounced, as three-bedroom rentals essential for many working families typically range from $1,300 to $1,689 per month1. This pricing structure places significant financial pressure on moderate-income families, particularly those with children who require adequate living space for healthy development and family stability.

Barriers Beyond Price

The competitive nature of Troy's rental market creates additional barriers that extend beyond simple affordability calculations. With limited inventory and strong demand, property owners can afford to be selective about tenants, potentially disadvantaging those with lower incomes or less stable employment histories. The average time properties spend on the rental market has decreased, indicating strong demand and limited supply that favors landlords in tenant selection processes.

Application processes often require significant upfront costs that create additional hurdles for families already struggling with affordability. Security deposits equal to one month's rent, non-refundable application fees of up to $50 per adult, and first month's rent in advance combine to create substantial financial barriers. For a typical two-bedroom apartment renting for $1,300 per month, a family might need $2,650 upfront just to secure housing, representing a formidable barrier for households already struggling with basic expenses.

Broader Economic Implications

The housing affordability crisis extends far beyond individual hardship to affect the broader economic vitality of Troy as a community. When households spend excessive amounts on housing, they have correspondingly less disposable income for other goods and services, reducing demand for local businesses and services throughout the community. This creates a multiplier effect that constrains economic growth and job creation, potentially undermining the very economic foundation that supports the community's prosperity.

The concentration of cost-burdened renters also significantly impacts workforce recruitment and retention across all sectors of Troy's economy. Employers may find it increasingly difficult to attract and retain workers if housing costs consume disproportionate shares of worker incomes, creating a competitive disadvantage for local businesses. This challenge proves particularly concerning for essential service workers, including teachers, healthcare workers, and public safety personnel, whose salaries often fail to keep pace with rapidly increasing housing costs.

Current indicators suggest continued pressure on rental affordability in Troy, with increasing construction costs and strong regional demand creating ongoing challenges for both renters and potential homebuyers. However, there has been growing interest from developers in creating newer rental units, suggesting some market response to the demand pressures. Interest rate fluctuations and land availability continue to contribute to the complex dynamics affecting housing supply and pricing throughout the region.

The rental market continues to show particular stress indicators, with year-over-year rent increases ranging from 19% to 23% depending on the source. These increases far exceed typical wage growth patterns, suggesting that the affordability crisis will likely worsen without significant intervention or market correction.

The Path Forward

Troy's housing affordability crisis, when analyzed against typical rental costs rather than theoretical Fair Market Rent calculations, reveals an even more challenging situation for working families than many had previously understood. With typical rents ranging from $937 to $1,453 per month and continuing upward pressure, nearly half of all workers face significant housing cost burden or complete market exclusion. The community faces genuine risks of workforce displacement, economic stagnation, and increased inequality that could fundamentally alter the character and economic vitality of Troy.

Addressing this crisis requires coordinated efforts from multiple stakeholders, including local government, employers, housing developers, and community organizations working together toward common solutions. Potential approaches may include inclusionary zoning policies, employer-assisted housing programs, public-private partnerships for affordable housing development, and regional coordination on housing policy that recognizes the interconnected nature of housing markets. The data clearly demonstrates that housing affordability represents not merely a social issue but an economic imperative that affects the entire community's long-term sustainability and competitiveness in attracting and retaining the workforce necessary for continued prosperity.

Without comprehensive approaches to address the growing gap between typical rental costs and worker incomes, Troy risks losing the workforce diversity and economic vitality that has historically supported community prosperity and growth. The time for action might be sooner than later, before the affordability crisis becomes so severe that it fundamentally alters the community's ability to house the workers who sustain its economy and contribute to its unique character and quality of life.

City Wants YOUR Input on Park Improvements

Now is the time for Troy residents to get involved and advocate for the changes that will truly benefit the community. Your input will help ensure that the city’s limited resources are invested where they are needed most, creating parks and recreation facilities that reflect the real priorities of Troy’s families and youth. Those wanting to participate in the survey can go to: www.troyohio.gov/parkplanning/

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