Lexington, Kentucky, September 27, 2025
News Summary
The housing market in Central and Southern Kentucky has reported significant growth in August, with a 9% increase in sales compared to the previous year. Notably, home sales reached the highest figures since 2022. Amid the growth, new listings also rose by 14%, leading to a total of over 4,000 properties in inventory. However, challenges remain in affordable housing availability, prompting local initiatives to address this pressing need.
Lexington, Kentucky – The housing market in Central and Southern Kentucky has experienced notable growth in August 2025, as evidenced by increased sales, pending contracts, and new listings, according to data from Bluegrass Realtors. A total of 1,338 homes were sold, reflecting a 9% increase from 1,230 transactions recorded in August 2024. This surge marks the highest sales figure since 2022.
Despite this growth, sales numbers decreased by 3% compared to July 2025, which saw 1,380 closings. Single-family home sales led the trend with an 8% increase, totaling 1,246 homes sold compared to 1,155 in August 2024. The market segment for townhouses and condos also saw a significant boost, with sales jumping 23% from 75 units in 2024 to 92 in 2025, accounting for just over 7% of the market.
Year-to-date, sales have risen by 6%, totaling 9,284 through the first eight months of 2025, compared to 8,804 during the same period in 2024. New construction homes numbered 119 sales in August, a slight drop from the prior month, but a 4% increase over August 2024. Cumulatively, new construction sales in 2025 reflect a 9% rise compared to 2024.
Pending contracts surged to 1,321 in August 2025, marking a 13% increase from 1,167 in August 2024. Year-to-date pending sales also rose by 8%, totaling 10,188 properties under contract. Concurrently, new listings of homes have increased significantly, with 1,947 properties listed in August, representing a 14% rise year-over-year and the most new listings for August since 2019.
Market Trends and Inventory
The total housing inventory reached 4,106 properties in August, a 10% increase compared to the previous year, continuing a streak of 22 consecutive months of inventory growth. The months of inventory available rose slightly to 3.1 from 3.0 in August 2024, indicating market dynamics inching closer to balance.
Houses now stay on the market longer, with an average of 42 days before going under contract—up from 35 days a year prior. The median days on market, however, reached 17 days, an increase from 13 days in 2024, while the average days on market for the year have gone up by 21% to 47 days.
Pricing and Affordability Initiatives
The median home price in August 2025 hit a record high of $287,500, a 3% increase from $279,000 in August 2024. Year-to-date median prices also rose by 5% to $284,900. In contrast, single-family home prices saw a 4% increase to $290,400, while townhouse and condo prices dropped 4% to $248,725.
In response to growing housing demands, several affordable housing initiatives are underway. One such project includes converting an empty church into 22 single-family affordable housing units in Lexington, with groundbreaking recently taking place and completion projected for next year. Currently, Lexington faces a deficit of 2,300 housing units, primarily in the affordable sector. Additionally, renovations have been made to 204 affordable apartment homes for seniors and disabled individuals at Briarwood of Lexington, costing around $45,000 per unit.
These projects utilize a mix of funding sources, including low-income housing tax credits and resources from Lexington’s Affordable Housing Fund, aiming to improve the safety and quality of living for residents.
Conclusion
The Central and Southern Kentucky housing market exhibits strong growth, signaling a continuous trend of increasing sales and pending contracts, yet challenges persist in affordable housing availability. The local initiatives being instituted may address some of these pressing needs as the market continues to evolve.
FAQs
What is the current state of the housing market in Central and Southern Kentucky?
In August 2025, the market experienced a 9% increase in home sales compared to August 2024, with a total of 1,338 homes sold.
Are new listings increasing in Lexington?
Yes, new listings are up 14% year-over-year, totaling 1,947 properties listed in August 2025, the highest since 2019 for that month.
What initiatives are being taken to improve affordable housing in Lexington?
Several initiatives are underway, including converting a church into 22 single-family affordable housing units and renovating 204 affordable apartment homes for seniors and disabled individuals.
| Feature | August 2025 | August 2024 | Year-to-Date 2025 | Year-to-Date 2024 |
|---|---|---|---|---|
| Homes Sold | 1,338 | 1,230 | 9,284 | 8,804 |
| New Listings | 1,947 | 1,708 | 14,251 | 12,733 |
| Total Inventory | 4,106 | 3,727 | N/A | N/A |
| Median Home Price | $287,500 | $279,000 | $284,900 | $270,000 |
| Average Days on Market | 42 | 35 | 47 | 39 |
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Additional Resources
- Kentucky Opinion Article
- Wikipedia: Affordable Housing
- WTVQ News on Lt. Gov. Visit
- Google Search: Lexington housing market
- Multi-Housing News: Student Housing Construction
- Google Scholar: Lexington housing initiatives
- Fox 56 News: Affordable Housing Units
- Encyclopedia Britannica: Housing market in Kentucky
- WKYT News: Lexington Affordable Housing Project
- Google News: Kentucky housing updates
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