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1) Lexington boasts an impressive "livability score" of 87, highlighting its exceptional quality of life
Signal strength: strong
The fact that the livability score in Lexington is 87 is a strong indicator that buying property there is a wise investment.
This score is considered excellent because Lexington offers a unique blend of urban and rural environments, providing residents with the best of both worlds. Additionally, the city is known for its high-quality education system, which attracts families and ensures a steady demand for housing. Furthermore, Lexington's vibrant cultural scene, including events like the annual Festival of the Bluegrass, adds to its appeal.
These characteristics contribute to the city's high livability score, making it an attractive place for potential homeowners and investors. When a city has such a high livability score, it often leads to increased property values over time, offering a promising return on investment.
However, if the livability score were to drop below 70, it might indicate underlying issues that could affect property values negatively.
Source: AreaVibes
2) Lexington's "vacancy rate" of 7.0% shows a bustling and competitive market with most spaces filled
Signal strength: strong
The vacancy rate in Lexington is 7.0%, which is considered very low. This low vacancy rate indicates that the market is highly occupied and competitive, suggesting strong demand for rental properties.
When demand is high, it often means that property values are likely to increase over time, making it a potentially profitable investment. In such a market, properties that are easily rented are typically well-maintained, single-family homes.
These homes are often located in desirable neighborhoods like Chevy Chase, where amenities and schools are attractive to renters. Investing in these types of properties can be a smart move because they tend to have lower vacancy rates and stable rental income.
If the vacancy rate were to rise above 10% or more, it might indicate an oversupply of rental properties, which could make investing less attractive.
Sources: NeighborhoodScout, DataUSA, USCensus
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3) Lexington's 2025-2026 infrastructure projects, like "Georgetown Road" and "Hamburg Connector," are designed to boost real estate values
Signal strength: moderate
Several infrastructure projects in Lexington, Kentucky, are poised to boost real estate values in the coming years, making property investment in these areas potentially lucrative.
The Georgetown Road Improvements project, scheduled for construction in FY 2025, involves widening and reconstructing Georgetown Road (US 25) between Spurr Road and Kearney Road. This project is expected to improve accessibility and reduce congestion, thereby increasing the appeal of properties along this corridor.
Similarly, the Nicholasville Road “Access Management” Project aims to manage access points along US 27 between Nicholasville and Man O’ War Blvd. By reducing traffic congestion, this project could make the area more attractive for residential and commercial investments.
The Hamburg Connector Project, set for completion in FY 2025, will create a new roadway connection between Sir Barton Way and Polo Club Blvd. This project is anticipated to boost property values in the Hamburg area by providing an alternate route and enhancing overall connectivity.
Additionally, the construction of the RISE STEM Academy for Girls at 2160 Versailles Road, with a planned completion by July 2026, could positively impact real estate values in the surrounding area by offering a state-of-the-art educational facility.
Sources: Lexareampo, Lexington KY News
4) Lexington, Kentucky, is experiencing population growth, with a "0.87%" rise
Signal strength: moderate
The population growth in Lexington, Kentucky, is a promising indicator for real estate investment. A steady increase in population, such as the 0.87% rise from 2023 to 2024, suggests a growing demand for housing and infrastructure.
Analyzing historical data, Lexington has consistently added residents over the years, with a notable addition of 27,282 people since 2010. This consistent upward trend in population growth reflects a thriving community and economy, which are key factors in real estate value appreciation.
Future projections further bolster this perspective. The short-term forecast anticipates a 2.6% population increase over the next five years, while the long-term outlook predicts a 5.6% rise by 2034. Such growth forecasts indicate a sustained demand for housing, making property investment in Lexington a strategically sound decision.
Moreover, Lexington's position within Kentucky's broader growth context, particularly in Fayette County, underscores its potential as a leading growth area in the state. This regional significance enhances the attractiveness of investing in property, as it aligns with the expected demographic and economic expansion.
Sources: Macrotrends, Synergos Technologies, Kentucky League of Cities, World Population Review, WKYU FM
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5) Lexington's median home price is significantly lower, at 31% below the national average
Signal strength: minimal
The fact that Lexington still has a median home price 31% below the national average suggests that there is room for growth in property values. This means that investing in real estate here could potentially yield a good return as the market catches up with the national trend.
In Lexington, the most expensive properties are likely to be luxury homes located in desirable neighborhoods such as Chevy Chase or Ashland Park. These areas are known for their historic charm and proximity to amenities, which drives up demand and prices.
On the other hand, the cheapest properties are probably small, older homes in less developed areas like the East End. These properties might require some renovation but offer a lower entry point for investors.
If the median home price in Lexington were to rise to above the national average, it might indicate that the market is becoming less favorable for new investments.
Source: Zillow
6) A local in Lexington can afford a house in about 3.6 years, which is reasonable
Signal strength: minimal
In Lexington, the fact that it would take around 3.6 years for a local to buy a house is a positive indicator for real estate investment. This is because it suggests that the housing market is relatively affordable compared to other areas, where it might take much longer for locals to purchase a home.
The median household income in Lexington is approximately $83,263, which is a healthy income level. This income level supports the ability of residents to afford homes, as the median home price is around $301,468, making it accessible for many families.
When the local population can afford to buy homes, it often leads to a stable and growing real estate market. This stability is attractive to investors, as it indicates a lower risk of market volatility and potential for consistent property value appreciation.
However, if it took significantly longer, such as over 5 years for a local to buy a house, it might suggest that the market is becoming less affordable, which could deter potential buyers and investors.
Source: USCensus
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So, is it worth buying property in Lexington? Absolutely!
Lexington offers a compelling case for real estate investment, thanks to its high livability score of 87, which reflects an exceptional quality of life.
The city's blend of urban and rural environments, coupled with a strong education system and vibrant cultural scene, ensures a steady demand for housing. With a low vacancy rate of 7.0%, the market is competitive, indicating strong rental demand and potential for property value appreciation.
Upcoming infrastructure projects, such as the Georgetown Road and Hamburg Connector, are set to boost real estate values further. Additionally, Lexington's population growth of 0.87% signals a thriving community, while the median home price being 31% below the national average offers room for growth.
Finally, the affordability factor, where locals can buy a house in about 3.6 years, suggests a stable and accessible market. All these factors make Lexington a strategically sound choice for property investment.