Housing Affordability in Lexington, Kentucky

The rapid rise in housing prices that occurred between 1990 and 2006 led many communities, including Lexington, Kentucky, to become concerned about whether individuals who hold “typical” jobs—such as teachers and police officers—could continue to live in the communities where they worked. Unfortunately, given the lack of recent detailed studies examining the affordability of housing in Fayette County (which contains Lexington), it is hard to know whether concerns about affordable housing are justified. In response to this lack of information, the Home Builders Association of Lexington and the Lexington-Bluegrass Association of Realtors (LBAR) requested that the Center for Business and Economic Researcher (CBER) at the University of Kentucky examine the issue of housing affordability in Fayette County. This report contains the results of our investigation.