January 7, 2020

Lexington's Housing Market Continues To Boom

When I moved to Lexington 7 years ago, one thing was clear from the start: Lexington is a booming city. I've lived many places in my life, but there's something unique about Lexington's economy: it beats the odds. At face value, it may not seem as Lexington is a cut above it's competition - a beautiful, moderate sized city in the heart of central Kentucky. As I soon found out, however, it's become a hub for many important industries and consistently ranks high in economy, employment & job growth metrics. As Forbes points out in this article, Lexington is #33 nationwide for "Best Places for Business and Careers," #43 for "Education, and has an 8% below national average cost of living. Success in Lexington comes from a variety of sectors, from agriculture to several national headquarters to the most recent initiative to become the largest gigabit city.

Lexington's accolades don't stop at the economy, however. In 2018, Lexington received top marks for rankings in the best places to visit, exciting food cities, and most notably, among a global place to visit. These awards come from national publications, ranging from Vogue to TripAdvisor and Zagat. Factor in a #3 ranking for safest cities in America and among the top 25 places to retire, it's no wonder why Lexington is such a booming city. This has driven demand for new housing at rates that construction can't keep pace; according to this article, Lexington would need to double construction between now and 2025 to meet demand. A quick drive around our city confirms the frequent construction we encounter on a daily basis to meet the need.

This outpace of demand has greatly benefited homeowners in our community. According to this handy chart from Zillow, if you purchased a home for $163,000 in May of 2016, it would be worth $198,000 on average today - a 21.4% growth during that period. According to the same article, Lexington's home prices have increased by 4.2% on average from 2019 and are projected to rise another 2.1%. With so many flocking to our city & looking to buy homes, it's possible these rates will continue to rise for the next few years.

If you're on the sidelines to purchase a new home or upgrade your current one, I'd encourage you to begin shopping today by finding a local real estate agent. My family and I purchased a new home this year and discovered how difficult to compete with other buyers in the area. Homes that are priced right, in desirable locations, and are in good quality rarely stay on the market for long.