Pull up new construction listings in Troy right now after reading the city's median home price and the numbers stop making sense. The median sale price across Troy sat at $436,000 over the three months ending in May 2026, according to aggregated MLS data. Click into anything actually being built new, though, and you're looking at $700,000 on the low end and well past $1 million for some of the most active communities in the city. That's not a rounding error and it's not a typo on a listing sheet. It's the visible edge of a market that ran out of room to build years ago and never found a way around it.
If you're comparing Troy to Berkley, Royal Oak, or another Oakland County suburb using the median price alone, you're pricing a market you won't actually be shopping in once you decide what kind of home you want.
Troy Ran Out of Room Before It Ran Out of Buyers
Troy is close to built out. Vacant land suitable for new subdivisions has been scarce for years, and the builders who remain active in the city are working smaller and smaller parcels, often teardowns or the last leftover lots tucked between established neighborhoods. One local builder tracker that has followed Troy's new-home market since 2017 noted that the number of active builders in the city is low and the land left to develop is even lower.
That scarcity has concentrated the building activity in the hands of one company. Mondrian Properties has controlled the majority of single-family new construction in Troy for roughly two decades, with little sustained competition until recently. When one builder controls most of the remaining supply in a market this tight, prices don't settle at what the broader city can absorb. They settle at what the smallest available lots can justify, and lately that's been north of $900,000.
The Three Price Bands That Actually Describe Troy
The citywide median flattens three very different markets into one number. Here's what actually separates them:
| Price Band | What You're Buying | Where You'll See It |
|---|---|---|
| $200,000–$350,000 | Attached condos and townhomes, mostly resale with a handful of new builds | Square Lake Court, built by Eureka Building, listed from the upper $200s though most units close well into the $300s |
| $400,000–$550,000 | The classic Troy colonial or ranch, the housing stock most of the city is actually made of | Existing single-family resale citywide |
| $700,000–$1,000,000+ | New-build detached homes and condos on the city's last infill and teardown parcels | Estates of Eckford and Town Haven, both by Mondrian, plus Ashton Parc by Glen Arbor Building Co. |
Mondrian's Estates of Eckford, tucked in the square mile bordered by Long Lake, Livernois, Wattles, and Rochester roads, put 22 homes on roughly quarter-acre lots ranging from 3,900 to over 4,100 square feet. Listed from the low $900s, most are now finishing north of $1 million. A few miles away, Mondrian's Town Haven is doing something similar with 19 homes near Wattles and Rochester, colonial and ranch plans from 2,900 to over 4,000 square feet, priced in the $1 million range, with first occupancies that arrived this past spring.
Not every new-construction option sits at the very top. M/I Homes is building Wesley Park, 32 townhomes near Rochester and Long Lake roads priced from the $500s, with pre-sales opening at some point this year. That's the closest thing Troy has right now to new construction near the median, and it still lands at least $60,000 above the citywide resale figure of $436,000.
The Lock-In Effect Is Squeezing the Middle
The $400,000 to $550,000 band, the colonials and ranches that make up most of Troy's actual housing stock, is exactly where a buyer would expect to find real supply. It's also where inventory has gotten thinnest. Multiple local market reports published earlier this year described active listings dipping below 200 at any given time, in a city of roughly 87,000 residents.
Part of that scarcity traces back to owners who refinanced or bought at mortgage rates well below where rates sit today. Selling means giving up that rate and taking on a new one, so a lot of homeowners who might otherwise list are choosing to stay put instead. Combine that with a city that has almost no vacant land left to absorb new supply at the bottom of the market, and you get a middle band that's tight from both directions: fewer resale colonials coming up for sale, and no meaningful new construction arriving to compete with them on price.
Why the Premium Sits Downtown
Not every pocket of Troy carries the same premium, and Downtown Troy is the clearest example. Over the three months ending in March 2026, the median sale price there reached $515,000, roughly $79,000 above the citywide figure for the same general period. That gap isn't about square footage. It's about walkability and proximity: homes in that pocket sit within walking distance of Somerset Collection, Boulan Park, the Troy Skate Park, and the Troy Family Aquatic Center, and a short drive from the Big Beaver corridor where much of Troy's employment base is concentrated.
Troy sits inside what's often called Automation Alley, Michigan's automotive and technology corridor, and the city hosts major operations for companies including Flagstar Bank, Kelly Services, Altair Engineering, Inteva Products, and Corewell Health's 520-bed Beaumont Troy Hospital. Employees relocating for roles at these companies often want a home that's ready on day one, close to the office, with no renovation project waiting for them. That's exactly the buyer profile willing to pay the Downtown Troy premium, and it's part of why new construction in that pocket skews toward finished, turnkey product rather than fixer-uppers priced to move.
What This Means If You're Comparing Troy to Other Suburbs
If you're cross-shopping Troy against a neighboring community using the median price alone, you're missing the part of the story that actually determines your monthly payment. A buyer set on new construction should expect to shop in the $700,000-plus band, full stop, because that's nearly the only band where new construction currently exists. A buyer who wants value and doesn't need a brand-new build should focus on the $400,000 to $550,000 resale colonials and ranches, understanding that inventory there is thin and a well-priced listing may move fast even with days-on-market figures elsewhere in the city trending slower.
Either way, the citywide median is a starting point for conversation, not a number to plan a budget around.
A Couple of Questions We Hear Often
Is Troy's market actually cooling in 2026? Depends on which window you're looking at. Data covering the three months ending in May 2026 showed the median sale price down 5.9 percent year over year, with days on market rising from 13 to 20. A separate report published in February 2026, using data through the end of 2025, put the same city median up roughly 8 percent year over year. Both describe the same city. The difference comes down to timing and methodology, not a reversal in the market. What's consistent across every source is that the pace has slowed from the frantic speed of a couple of years ago without flipping into buyer territory.
Will new construction prices in Troy ever come back down toward the median? Not likely while land stays this scarce. As long as builders are working the last available infill lots and teardown parcels rather than open subdivisions, new construction will keep pricing at what those smaller, harder-to-find sites can support, which right now means the top of the market rather than the middle.
If you're trying to figure out which of these three price bands actually fits your budget and your timeline, that's exactly the kind of conversation worth having before you start touring. Kim Nagy and the Nagy Real Estate Group know these Troy pockets block by block, from the Estates of Eckford to the resale colonials that never make it to a portal search before they're under contract. Contact Us to talk through what your number actually buys in Troy right now.
