Lexington

KYLexington-Fayette

Real Estate Market Analysis

Q3 2025 Report
$332,357 (June 2025)
Median Home Price
322,570 (metro area: ~517,000)
Population
$62,000 (2024 est.)
Median Income
B+ (Fayette County Public Schools)
School District Rating

Market Overview

Property Values

$332,357 (June 2025)
Median Home Price
$165
Price per Sq Ft
+3.6% year-over-year
YoY Change

Market Performance

Days on Market5 days (median, June 2025)
Market TypeSeller's Market
Months of SupplyLow (Seller's Market)

Sales Activity

Sales Volume$1.22 billion (April 2025, KY total)
Metro AreaLexington-Fayette
Population322,570 (metro area: ~517,000)

Economic Indicators

Employment & Growth

Unemployment Rate~3.5% (2025 est., metro area)
Job Growth Rate~2.1% (2025 est.)
Median Household Income$62,000 (2024 est.)

Major Employers

  • University of Kentucky
  • Lexmark International
  • Toyota Motor Manufacturing
  • Baptist Health Lexington
  • Fayette County Public Schools

Demographics

322,570 (metro area: ~517,000)
Population
34.2 years
Median Age
+0.7% annually (2024-2025)
Population Growth
41% bachelor's degree or higher
Education Level

Family Composition

Mix of young professionals, families, and retirees

Key Industries

EducationHealthcareManufacturingTechnologyEquine/Agriculture

Education

School District

B+ (Fayette County Public Schools)
District Rating

Top Schools

  • Henry Clay High School
  • Paul Laurence Dunbar High School
  • SCAPA Bluegrass

Higher Education

  • University of Kentucky
  • Transylvania University
  • Bluegrass Community & Technical College

Infrastructure & Development

Major Projects

  • Lexington Convention Center expansion
  • Town Branch Commons park and trail system

Transportation

  • New bus rapid transit routes
  • Roadway upgrades on New Circle Road

Planned Developments

  • Mixed-use projects downtown
  • New residential subdivisions in Hamburg and Masterson Station

Lifestyle & Amenities

Recreation

  • Keeneland Race Course
  • Legacy Trail
  • Jacobson Park

Dining & Entertainment

  • Distillery District
  • Downtown restaurants and breweries

Cultural Attractions

  • Lexington Opera House
  • 21c Museum Hotel
  • Mary Todd Lincoln House

Investment Analysis

Investment Opportunities

  • Strong rental demand near universities
  • Appreciation in downtown and Hamburg areas
  • Short-term rental potential for equine events

Growth Outlook

Positive; steady appreciation and population growth expected through 2026

Market Risks

  • Rising property taxes
  • Potential interest rate increases
  • Limited inventory driving up prices

Rental Market

Competitive; low vacancy rates, especially near campus and hospitals

Marketing Intelligence

Target Demographics

  • Young professionals
  • University staff and students
  • Relocating families

Marketing Channels

  • Zillow/Realtor.com
  • Facebook/Instagram
  • Local real estate websites

Pricing Strategies

List slightly above recent comps to capture appreciation, adjust quickly if no offers in 2 weeks

Common Objections & Response Strategies

Objection: Prices are too high compared to last year

Response Strategy:

Highlight continued appreciation and low inventory, emphasizing long-term value

Objection: Not enough homes to choose from

Response Strategy:

Suggest off-market opportunities and flexible search criteria

Objection: Worried about rising interest rates

Response Strategy:

Connect with lenders for rate locks and discuss potential refinancing options

Professional Recommendations

1

Educate buyers on market realities and set expectations early.

2

Encourage sellers to price aggressively but realistically.

3

Leverage professional marketing and staging for maximum impact.

4

Monitor new construction and infrastructure projects for emerging opportunities.

5

Network with local employers and universities for relocation leads.

Competitive Analysis

Comparable Markets

  • Louisville, KY
  • Cincinnati, OH
  • Nashville, TN

Market Positioning

Affordable, high-quality-of-life alternative to larger metros

Competitive Advantages

  • Lower cost of living than Nashville/Cincinnati
  • Strong university and healthcare presence
  • High livability score (87)

Price Comparison

Lexington's median price ($332k) is lower than Nashville ($450k) and Cincinnati ($350k)

Investment Metrics

5.5%–6.2% (multi-family, 2025 est.)
Cap Rates
~6% gross yield (single-family rentals)
Rental Yields
~16.5
Price-to-Rent
Positive in university and hospital-adjacent neighborhoods
Cash Flow
3–4% annual appreciation through 2026
Appreciation

Buyer Journey Insights

First-Time Buyers

Face competition and rising prices; benefit from local down payment assistance programs.

Move-Up Buyers

Leverage equity gains; may face limited inventory in mid-range homes.

Downsizers

Strong demand for low-maintenance condos and townhomes.

Investors

Attractive rental yields and appreciation, especially near UK and downtown.

Relocators

Drawn by job growth, affordability, and quality of life.

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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