Louisville Multifamily Market Report

Affordability fuels migration surge and tightens vacancy. Record net in-migration in 2024 was driven by the third-most affordable average rent and fifth-lowest median home price among major U.S. metros. Combined with a 10-year high in household formation, this pushed net absorption to a record level, lowering vacancy by 130 basis points to its lowest since 2022. While those affordability advantages remain, the pace of demand growth was unsustainable. More modest net absorption in the first quarter marks this shift, with flat-to-negative readings across Central and Southern Louisville. As demand normalizes, vacancy is expected to rise slightly in 2025, though the metro’s underlying fundamentals remain strong.