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Market Report

Louisville Multifamily Market Report

3Q 2022

Renters Display a Preference for High-Tier
Properties, a Promising Sign for New Deliveries

Elevated demand drives record rent gains. Rapid household expansion throughout 2021 placed pressure on Louisville's apartment inventory. Vacancy has fallen accordingly, with the second quarter noting the second-lowest rate in the metro since at least 2000 at 3.2 percent. This lifted Louisville's average effective rent by a double-digit percentage during the past year ended in June, a substantially stronger pace than the 2.1 percent annual average from 2001 through 2020. Rapidly rising rent was noted across the apartment spectrum as all three property classes saw their respective mean effective rates increase by at least 13.0 percent. Rent growth in the market is expected to continue at an above-average pace this year as vacancy holds well below the long-term mean.
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