Louisville Multifamily Market Report

New units outpace renter demand. Deliveries in Louisville will surpass a 2,000-unit completion total for the sixth time in the last seven years. Despite supply additions placing upward pressure on vacancy in 2023, the metro will still record a 16th consecutive year of positive net absorption, allowing total occupied stock to reach a new record high. Sustained demand for rentals is likely to carry on long-term as Louisville is expected to log consistent population growth across the next five years. However, some employment sectors may face near-term headwinds caused by a challenged hiring environment and other macroeconomic uncertainty entering the year. Inflationary pressures could dampen renter demand for high-tier units as consumers shift focus to more budget-friendly apartment options.