Kentucky Housing Market Vitality

Market Rank


Kentucky metro area house prices are forecasted to underperform the national market over the next twelve months. Currently, the market is underperforming the overall U.S. market. Compared to 12-months ago, Kentucky’s housing market has strengthened. Current local economic conditions support an estimated 16.5% increase in house prices over the next twelve months. Based on the housing market vitality of the nine metro housing markets which comprise it, Kentucky’s housing market ranks twenty-eighth amongst all states and D.C. The three-month outlook is negative.

Housing Market Vitality

Housing Market Vitality summarizes the impact of economic conditions on house prices. A value of 100 corresponds to conditions supporting current price appreciation; values less than 100 correspond to a dampening effect and values greater than 100 indicate a positive impact on house prices. A housing market vitality value can be interpreted as a growth rate. Hence, a reading of 105.8 can be interpreted as a 5.8% annualized increase in house prices.

Market Pulse

Kentucky housing market cools off say Kentucky REALTORS®. Relief for buyers as sellers reduce prices and inventory inches up.

Sales TrackerMarch 202212-month change
Closed Sales Count4,521-2.1%
Distressed Sales Count14+40%
Median Sales Price$225K+12.8%
Months of Inventory1.2-51%

The latter half of 2021 showed signs of a cooling housing market. Units sold numbers were down year-over-year for July through December. They were not down enough, however, to keep 2021 from breaking records across the board. Year-over-year December home sales dropped by 7%, to 4,467 (from 4,807). This bumped the grand total for homes sold to 57,140. This is an increase of 3% from 2020’s tally of 55,507. Kentucky topped the 50,000 mark for the very first time just 2 years ago (2019) when sales peaked at 50,891.

Sales volume broke records once again in 2021 totaling $14.3 billion. This is almost 16% over the 2020 year-to-date volume of $12.4 billion. This figure has essentially doubled over the past 5 years having reached $7.9 billion in 2016.

Kentucky Metro Housing Markets

Kentucky is comprised of nine metro housing markets that account for nearly 58% of the state’s population. The Bluegrass State metro housing markets are unique in their demographics and local economies and exhibit trends that are distinct from the national and state narrative. Each metro market presents its own unique opportunity.

Bowling Green, KYUnderperformingNeutral170
Cincinnati, OH-KY-INUnderperformingNegative232
Clarksville, TN-KYOutperformingPositive42
Elizabethtown-Fort Knox, KYTrackingNegative183
Evansville, IN-KYUnderperformingNegative238
Huntington-Ashland, WV-KY-OHUnderperformingNegative380
Lexington-Fayette, KYUnderperformingNegative221
Louisville/Jefferson County, KY-INUnderperformingNegative283
Owensboro, KYUnderperformingNegative328

Industry Specialization

Kentucky’s state economy is specialized in Manufacturing and Other svcs. Mining, Information, and Pro Bus svcs industry sectors are less important to the state economy compared to the national economy.

Industry specialization helps explain the differing impact of industry trends on local economies in contrast to industry composition which describes the structure of the economy. A Specialization Index value greater than 100 corresponds to the sector having a greater share of the state economy than it does of the national economy. Sectors with a Specialization Index greater than 120 characterize the local economy.


Compared to the U.S., there is a higher incidence of poverty amongst Kentucky residents and they have greater purchasing power. There are more high school graduates and a smaller proportion of the population is college educated. Kentucky’s population is comparatively less diverse than the overall U.S. population.

A Demographics Index value greater than 100 corresponds to the factor being more intense in the state versus the national average. Characteristics of the local population is a longer-term factor that influences the housing market.

Updated May 10, 2022 with data through March 2022