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Market Report

Louisville Multifamily Market Report

2025 Investment Forecast

Louisville’s Long-Term Outlook
Bolstered by Downtown Redevelopment Efforts

Moderate supply additions and renovation efforts underpin a low vacancy rate. Louisville did not undergo the same level of post-pandemic inventory expansion as many other major markets. This has helped restrain the local vacancy rate under the historic average of 6 percent. Additionally, city officials have taken steps to improve foot traffic in the CBD, allocating $3 million for a Downtown Revitalization Fund that began in 2024 and can be drawn upon through the end of the year. The fund will provide relocating companies up to $30 per square foot for space they lease in downtown buildings. At the end of 2025, the budget will be repurposed to develop workforce housing in the CBD. This effort, along with large-scale renovation and adaptive reuse projects, such as the 401 South 4th building and the American Red Cross Louisville Chapter building, inspire confidence in the long-term path of the CBD. These endeavors may aid the metro in expanding employment in the future. Meanwhile, suburban Class A assets have fared better than their CBD counterparts. Northeast and Southeast Louisville will both enter 2025 with Class A vacancy in the mid- to low-4 percent band.
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