Louisville, KY Housing Market Report

The Louisville housing market as of December 2025 continues to demonstrate remarkable resilience and steady growth, characterized by a median home value of $252,069. This represents a 3.16% year-over-year increase, signaling a market that remains firmly in favor of sellers despite broader economic shifts. While the rental market has also seen growth, its more modest 1.58% annual increase suggests that the demand for homeownership remains the primary driver of the local real estate economy. The current environment is defined by limited inventory and consistent buyer competition, which keeps upward pressure on valuations.

Examining the price trends over the last six months reveals a classic V-shaped recovery within the second half of the year. After a slight cooling period during the late summer and early autumn—where prices dipped from $250,446 in July to a low of $249,889 in September—the market regained significant momentum in the fourth quarter. The jump from $250,892 in November to $252,069 in December indicates a strong year-end finish, likely driven by buyers looking to lock in homes before the new year and a persistent shortage of available listings in the Jefferson County area.

Looking ahead, the Louisville-Jefferson County metro area remains one of the more affordable mid-sized markets in the region, which continues to attract both first-time buyers and out-of-state investors. Sellers can expect to command strong prices if their properties are well-maintained, while buyers should prepare for a competitive landscape where quick decision-making is essential. As we move into 2026, the steady appreciation suggests that while the rapid spikes of previous years have leveled off, the market is settled into a sustainable growth pattern that rewards long-term equity building.