Statistics released in November point to a strong 2026 for Central Kentucky’s residential real estate market, experts say.
According to a report from Bluegrass Realtors, sales volumes across its 38-county region exceeded $4 billion through November, up 8 percent from $3.8 billion during the same period last year. With rising home prices, more listings and shorter market times, industry representatives say the outlook is positive — but the numbers can be misleading.
In Fayette County, 3,652 homes sold in 2025, roughly the same as the 3,666 sold in 2024. The median home price rose 3 percent, to $340,000 from $329,050 the previous year. Homes also spent slightly more days on the market — averaging eight days in 2025 compared with six in 2024.
Sean Pavone
Mike Inman, president of Bluegrass Realtors and a Coldwell Banker McMahan agent, explained the seeming contradictions.
“There are numbers that seem impossible because some trends run opposite,” Inman said. “The median sale price is up, sales are up, days on market are up, and listings are up. You would think if you have rising prices, you would probably have more of a shortage, but we have more houses now than we've had for several years after COVID in terms of what the need is. However, there's sustained demand and we have a lot of young professionals who are coming of age and are ready to buy.”
Migration is also contributing to the market’s strength. A U-Haul report tracking one-way rental transactions ranked Kentucky 17th for growth in 2025, up eight spots from 2024. Inbound moves accounted for 50.2 percent of all one-way traffic in and out of the state.
“We have many people coming from neighboring states like Indiana and Ohio,” said Jeff Porter, U-Haul area district vice president for Kentucky and Tennessee. “Industries are moving into Louisville, and the job growth and economic opportunities are strong.”
Porter cited Kentucky’s rolling countryside, low taxes, low cost of living and low unemployment as factors drawing new residents. Hot spots for growth include Bardstown, Berea, Bowling Green, Covington, Elizabethtown, Elsmere, Georgetown, Lawrenceburg, Lexington, Nicholasville, Oak Grove, Owensboro, Paducah, Shelbyville and Walton.
The combination of in-migration and homeowners holding onto their properties has tightened the market.
“Economists are optimistic about housing growth next year,” Inman said. “The biggest worry is interest rates. Many families have mortgages under 4 percent, so they aren’t selling to upsize or downsize. That exacerbates the housing shortage.”
Changes in family structure are also affecting inventory.
“Because of high home costs, we now see more multigenerational households — a trend not common in the U.S. for over 100 years,” Inman said. “Older family members need care but don’t want to give up their homes, which would mean losing significant equity.”
Still, more homes are hitting the market. Data from HousingWire shows Lexington’s active inventory of single-family homes increased nearly 30 percent, to 1,112 in 2025 from 858 the previous year. New listings during the week of Nov. 7 added 82 homes, creating a 2.6-month supply.
Todd Hyatt, past president of Bluegrass Realtors, noted that overall inventory is rising. The region had 4,454 homes available in November 2025, a 7 percent increase from 4,176 in 2024, marking 25 consecutive months of year-over-year growth.
“Inventory expansion is one of the best things for this market,” Hyatt said. “After years of limited selection, it’s refreshing for buyers to see more options.”
With 4.7 months of inventory — the highest in seven years — homes are still selling quickly.
“Homes didn’t stay on the market as long in November,” Hyatt said. “Demand remains strong, and buyers are taking advantage of favorable conditions during the colder months.”