Rent Growth in Louisville Outpaces the National Average

The Louisville/Jefferson County, KY-IN apartment market has historically been characterized as a relatively stable market with limited downside risk. Over the past nine months, rent growth in the market has exceeded the national norm, after lagging U.S. averages for much of the five-years leading up to the pandemic. This mid-sized South region market, with a population of just over 1.28 million and nearly 97,000 apartment units, recorded a 6.2% increase in effective asking rents during the year-ending April 2023. According to data from RealPage Market Analytics, that rent growth pace was nearly twice the U.S. average (3.2%) and far above the market’s pre-pandemic average annual growth pace from 2015 to 2019 (2.5%). Even with the recent price hikes, Louisville remains a relatively affordable market with effective asking rents of $1,181 per month as of April, a rate that came in $619 below the national average. Meanwhile, Louisville’s April 2023 occupancy rate registered at 94.7%, matching the U.S. norm. Though down 250 basis points year-over-year, occcupany remains essentially in line with the market’s long-term norm of 94.5%.