Why Invest in Louisville, KY
When it comes to buying a property, Louisville is ranked as one of the top ten places for it! The rapid growth of jobs, population and affordability make this city’s properties a high-performing investment.
Louisville is recognized for its love of sports, the Kentucky Derby and the Louisville Slugger baseball bats being manufactured here. Additionally, the widely-known restaurant, Kentucky Fried Chicken, has its humble roots down the road.
Louisville borders the Ohio River and the state of Indiana. This north-central city is the largest in Kentucky. It sports the nicknames of “Bourbon City” and the “Gateway to the South.” Louisville’s economy is buzzing in both private and public industries, with the benefit of high quality living for affordable prices. The shipping, high tech, transportation, and manufacturing industries all thrive here.
With all these benefits that come with living in Louisville, it’s no surprise that the real estate market is booming! Want to know more? Alltrade Property Management can help! Here’s a more detailed list of what makes Louisville such an appealing investment:
1. POPULATION GROWTH
Everyone knows that when a population is growing, there must be a substantial number of reasons that make the city attractive. An attractive city is an attractive investment.
Around 620,000 people live in the city itself, and 1.34 million people reside in the county of Louisville/Jefferson. The population growth of Louisville in the last decade is around 9%. This is projected to increase in the next 20 years to 16%, making any current real estate investment be of higher demand later.
The median age is also 37.3 years, making Louisville a younger person’s city and a great opportunity for long-term development!
2. QUALITY OF LIFE
Louisville has the unique draw of being a place where people live only to never want to leave it again. This is because of the high quality of life residents enjoy here. The cost of living, housing, and utilities are below the national average without sacrificing nightlife and engaging activities.
Abbey Road on the River is hosted by Louisville, as well as numerous festivals. These include the Kentucky Shakespeare Festival, the Kentucky State Fair, and the Forecastle Festival. There is always something fun to do in Louisville!
Louisville is also well-loved for its sports. The Louisville Cardinals, an NCAA men’s basketball team, takes residence here. And if you get a ball to the head while watching a game, it’s no matter! Two of Kentucky’s best hospitals are located in Louisville.
3. JOB MARKET
When it comes to the job market, Louisville is thriving! Cities like New York and Los Angeles have job growth smaller than Lousiville. This is because Louisville has a comfortable average salary with many increasing job opportunities.
In fact, there’s been a 34% growth in the job market over the last decade. Unemployment is substantially less than the national average, at just 3.7%. As such, it’s understandable that Louisville is ranked as one of the best places for economic development.
Education, government, transportation, healthcare, and business services are major employment sectors. Auto manufacturing companies such as Ford Motor Co. are also prominent employers as they’re expanding their Louisville production.
4. AFFORDABLE HOUSING WITH INCREASING RATES
It’s vital for real estate investors to analyze two factors before investing: housing affordability and home price changes.
Housing affordability is useful as it indicates the current demand for property. When the housing market is less affordable, there is an increase in demand for rental units.
The National Association of Realtors (NAR) uses a housing affordability indicator (HAI) to help determine the buying demand for real estate. Using a baseline of 100, any number above this indicates a higher family income, and therefore a higher chance of them buying a home. In 2018, Louisville had an HAI of 209.3. As such, there’s a high demand for real estate sales.
Additionally, when determining the potential increase in real estate value, historic price changes can give you the answer. By seeing how real estate has increased in value in the past, you can better gauge its future value.
5. REAL ESTATE MARKET
While Louisville has a strong buyer’s market, this does not mean that you should not invest in a Lousiville property. Even with fewer buyers than houses, house prices are projected to rise. With the assurance that Louisville’s population is also on a steep incline, investing in real estate here has long-term benefits.
In under a decade, real estate values have also increased by around 38%. Properties sell, on average, in 68 days. Areas that are prospering the most in terms of home value are Hayfield Dundee and Gardiner Lane.
6. RENTERS’ MARKET
Not looking to sell real estate? That’s no problem! In 2020, Louisville was ranked as one of the top 10 best places to invest in a rental property. The population growth, wages, and job market have all increased the financial returns of rental units.
$1,267 is the median rental price per month in Louisville. It’s on the rise, as well. In the last year alone, rents have increased by 4% on average. Renters make up 40% of Louisville households with Algonquin, University, and Taylor Berry having the highest rental prices.
Louisville excels in real estate, largely thanks to the top quality of life the city offers. The population is growing as more people see the draw to such an engaging and liveable place. With a prosperous job market and affordable living, it’s no surprise that Louisville is a wise choice for real estate investment.
There are numerous benefits to investing in Louisville real estate, and it shows! The real estate market is booming here. Whether you decide to sell a property or rent it out, it’s hard to go wrong with a city that’s on the rise.