Louisville Multifamily Market Report

Southern Indiana remains the most notable bright spot. The local impact of national employment headwinds last year slowed apartment absorption in Louisville to less than half of the prior five-year average. More than two-thirds of the metro’s net absorption in 2025 occurred in Southern Indiana, which also posted the market’s lowest vacancy rate at 4.0 percent in March. The ongoing large-scale expansion of River Ridge Commerce Center, which includes office, warehouse, and data center development, should continue to attract jobs to the area, helping keep local apartment vacancy below 4 percent through 2026.