With Lexington constantly growing and undertaking multiple high-profile developments this year, we figured it was time to talk about the cost of planting some roots in the Horse Capital of the World.
The median household income in Fayette County is $61,526 according to the US Census Bureau. State-wise, Kentucky is No. 44 in the country for median income at ~$52,238 per household.
The overall cost of living in Lexington is lower than the national average , but higher than the rest of the state.
The overall cost of living in Lexington is lower than the national average. | Screenshot via bestplaces.net
In Lexington, the cost of healthcare is lower compared to other parts of the state, but slightly higher than the US average. However, the cost of groceries, housing + transportation in the city have higher average costs than other cities in Kentucky.
Breaking down the numbers
Hypothetically speaking, if you live in a household that brings in $50,000 annually — according to experts — you shouldn’t spend more than 30% of your monthly gross income on rent and utilities. Don’t worry, we did the math for you — your max monthly budget would be $1,250. The average monthly rent for an apartment in Lexington is $1,162 — nearing the top of your budget.
According to a recent study by Attom Data Solutions , it’s actually more affordable to buy a home in Fayette County than to rent.
Take a look at the chart below to see how Lexington’s cost of living compares to that of Louisville.
The overall cost of living in Lexington is slightly higher than in Louisville. | Screenshot via bestplaces.net
Interested in seeing Lexington’s cost of living compared to cities in other states? We played around on nerdwallet’s cost of living calculator, where you can put in any city along with your current pre-tax household income to find out what other cities you could actually afford to live in.
We took a look at the cost of living in Lexington compared to Nashville. Here’s what we found:
- The cost of living is 5% higher in Nashville.
- To maintain our standard of living, we would need to bring in $52,358 to our Lexington household.
- The median cost for a two-bedroom apartment is $1,372, which is $388 more than Lexington.
Lexington has entities such as the Lexington Housing Authority + other government-funded programs to help develop more affordable units.
There are also a number of local development firms working on apartments seemingly all the time — from The Alcove at Russell to the High Street development project from Lincoln Webb LLC.