{"id":11213,"date":"2017-03-01T18:52:35","date_gmt":"2017-03-01T18:52:35","guid":{"rendered":"https:\/\/louisvillehomesblog.com\/?p=11213"},"modified":"2023-08-17T17:12:24","modified_gmt":"2023-08-17T17:12:24","slug":"rent-buy-louisville-ky","status":"publish","type":"post","link":"https:\/\/trepryor.com\/blog\/rent-buy-louisville-ky\/","title":{"rendered":"Rent or Buy in Louisville KY?"},"content":{"rendered":"\n

This is a big question. After all, buying a home is a hugely important decision. Should you rent or buy in Louisville KY? That’s what we’re here for… to answer that very question.<\/p>\n\n\n\n

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Finding rental houses<\/em> is a challenge in a city like Louisville where apartments rule.<\/figcaption><\/figure>\n\n\n\n\n\n\n\n

But first, let’s get some perspective. Homeownership has been dropping\u00a0since the mid-2000s. According to Jones Lang LaSalle<\/a>:<\/p>\n\n\n\n

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The United States continues to evolve into a nation of renters, with home ownership falling to its lowest rate since the end of 1967.<\/p>\n<\/blockquote>\n\n\n\n

Put into chart form, it looks even direr.<\/p>\n\n\n\n

\"Chart
Since the high of 2004, home ownership in the US has steadily declined.<\/figcaption><\/figure>\n\n\n\n

The trend is clear. Fewer are buying. But is renting the best choice for you<\/em>?<\/p>\n\n\n\n

Location Matters<\/h2>\n\n\n\n

The location in question factors largely into the answer to this question. According to zumper.com, Louisville is the 59th most expensive city in their top 100 markets. Not bad but not great either.<\/p>\n\n\n\n

Here’s how Louisville compares to some similar, regional cities in March<\/a>.<\/p>\n\n\n\n

Average Apartment Price<\/strong><\/td><\/tr>
Rank<\/strong><\/td>City<\/strong><\/td>1 Bedroom<\/strong><\/td>2 Bedroom<\/strong><\/td><\/tr>
24<\/td>Nashville<\/td>$1,160<\/td>$1,300<\/td><\/tr>
59<\/td>Louisville<\/td>$760<\/td>$810<\/td><\/tr>
65<\/td>Lexington<\/td>$780<\/td>$930<\/td><\/tr>
70<\/td>Cincinnati<\/td>$730<\/td>$950<\/td><\/tr>
71<\/td>St. Louis<\/td>$690<\/td>$960<\/td><\/tr>
79<\/td>Knoxville<\/td>$670<\/td>$800<\/td><\/tr>
92<\/td>Indianapolis<\/td>$570<\/td>$680<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Apartment prices are really affordable in Indy but Louisville? Not so much. (Zumper must take other things into consideration for their rankings because if they only used these two data points, the rankings would be different.)<\/p>\n\n\n\n

Making the Best Rent or Buy Decision<\/h2>\n\n\n\n

Here’s the pivota<\/strong>l part of the equation: How long will you be living in Louisville? If your answer is more than 4 years, then buying rather than renting will save you money<\/strong>. The longer you stay in your house, the more<\/em> you save.<\/p>\n\n\n\n

Now… where did I get that number? It’s easy. Follow me!<\/p>\n\n\n\n

Realtor.com has this handy-dandy Rent vs Buy Calculator<\/a> that you can customize with your personal information.<\/p>\n\n\n\n

First, I entered Louisville, KY for the location. Knowing that the average home sale price in February was $191,711, the calculator I entered $190,000 for our desired home price.<\/p>\n\n\n\n

The rent amount is a bit trickier but I estimated $1000. Understand, the 2-bedroom apartment you’ll get for $1000 won’t be nearly so large as the house but even that<\/em> depends on the location of the house.<\/p>\n\n\n\n

Click the “Calculate” button and voila!<\/p>\n\n\n\n

\"Buy\"
The longer you plan to stay in one place, the more<\/strong> it makes sense to buy rather than rent.<\/figcaption><\/figure>\n\n\n\n

Other Rent or Buy Considerations<\/h2>\n\n\n\n

Most people are focused primarily on the financials<\/em> in this decision but that’s just a portion of the picture. Here are some other questions to answer when evaluating the rent or buy in Louisville KY question.<\/p>\n\n\n\n