Rent prices in the Commonwealth are becoming less affordable, according to a new report from the National Low-Income Housing Coalition, a nonprofit based in Washington, D.C. dedicated to ending the affordable housing crisis.
Kentucky ranks 38th nationally in affordable housing. That’s eight spots worse than the state’s ranking last year.
According to the report, the Fair Market Rent for a two-bedroom apartment in the state is $1,090.
To afford that level of rent and utilities and avoid paying more than 30% of income on housing, a household would have to earn $43,612 annually or $3,634 monthly.
Adrienne Bush is the executive director of the Homeless and Housing Coalition of Kentucky, a statewide coalition working to end homelessness and create opportunities for low-income residents to live in affordable homes.
She said affordability could become worse over the next five years as the state’s economy grows.
“Look at the I-65 corridor with the development of the EV battery plants in Hardin County. That is one of my big concerns when I look at the state of housing in Kentucky,” Bush said.
“From an economic development perspective, there needs to be housing for people to be able to stably work. We want economic development, and we want growth, and we want good paying jobs. But if there isn’t housing infrastructure along with it, it’s going to push a lot of people out.”
Bush explained the people who would likely be pushed out wouldn’t be those the state is trying to attract, but instead residents who eventually could be priced out of their homes.
The most expensive areas in Kentucky according to the report are Louisville, Lexington, Newport, Covington, and Shelby County.
But according to Bush, housing is becoming out of reach in other parts of the state as well, like Hardin and Warren counties.
Bush said Kentucky’s new ranking is tied to a lack of housing supply.
“The number one driver is the shortage because when there’s a shortage, housing becomes scarce therefore housing prices…both in the for sale and the rental market can go up because there are more people who need the housing then there are houses to sell or rent and that’s when prices go up.”
Bush told WKU Public Radio that when she first started at the coalition in 2017, Kentucky was ranked as the most affordable state in the nation. Over the past few years, Kentucky hovered in the 40s in affordability.
“We have a severe housing shortage in this state. We have had one, but it’s getting worse,” Bush explained.
“What we know right now based on research and reports is that Kentucky is short over 200,000 homes this year. We also know with projected growth if trends hold true, we expect that in 5 years things will get worse.”
Of Kentucky’s neighboring states, West Virginia is the most affordable, ranking 50th. Ohio ranks 41st, Missouri is 40th, Indiana is 34th, Tennessee is 29th, and Virgina is 18th.
