The Housing Market in Shelbyville Today
Shelbyville, Kentucky’s housing market in 2025 is shaped by its proximity to Louisville, steady population growth, and a diverse local economy. As a growing suburb, Shelbyville attracts a mix of young professionals, families, and retirees seeking a small-town feel with easy access to big-city amenities. Major employers like Walmart Distribution Center and Shelby Industries drive demand for both rental and owner-occupied housing.
Compared to Louisville, Shelbyville offers more affordable housing options, with lower median home prices and rents. However, the city’s popularity means prices have been rising steadily in recent years. New residents are often surprised by the impact of property taxes and HOA fees on their overall housing costs.
Renting in Shelbyville: Typical Costs and Trends
As of 2025, the typical rent for a 1-bedroom apartment in Shelbyville ranges from $900 to $1,200 per month, while 2-bedroom units average between $1,100 and $1,500. Rents are highest in the downtown area and newer complexes along the I-64 corridor, where many young professionals and commuters live.
Families and retirees often opt for rental homes or townhouses in quieter neighborhoods like Southside or Northridge. These properties typically rent for $1,500 to $2,000 per month, depending on size and amenities. Across all rental types, prices have increased by about 3-5% annually over the past few years.
Shelbyville’s renters include a mix of long-term residents, Louisville commuters, and those transitioning between homes. Proximity to I-64 is a key factor driving rental costs, with properties closer to the highway commanding higher prices. Public transit is limited, so most renters rely on personal vehicles for their daily commute.
Owning a Home in Shelbyville: Prices, Taxes, and HOA Fees
The median home price in Shelbyville as of 2025 is around $350,000, up from $280,000 in 2020. However, actual prices vary widely based on neighborhood, size, and property type. Starter homes in older areas like Southside can be found in the $200,000s, while newer construction and luxury properties often exceed $500,000.
One factor that surprises many new homeowners in Shelbyville is the impact of property taxes. The city’s property tax rate is $0.92 per $100 of assessed value, which equates to $3,220 annually for a $350,000 home. Shelby County’s rate is slightly lower at $0.84 per $100. In total, property owners can expect to pay around 1.5% of their home’s value in taxes each year.
About 30% of Shelbyville’s housing stock is located within HOA communities, which are popular with families and retirees. HOA fees in these neighborhoods typically range from $200 to $400 per month, covering amenities like community pools, fitness centers, and landscaping. While these fees can add significantly to monthly housing costs, many residents feel the convenience and amenities are worth the expense.
Apartment vs House in Shelbyville: Side-by-Side Costs
| Monthly Expense | Apartment (2BR) | House (3BR) |
|---|---|---|
| Rent/Mortgage Payment | $1,300 | $1,950 |
| Property Tax | N/A (included in rent) | $270 |
| Utilities | $150 | $250 |
| Insurance | $20 (renters) | $80 (homeowners) |
| HOA Fees | N/A | $300 (if applicable) |
| Monthly Total | $1,470 | $2,550 – $2,850 |
Utility & Upkeep Differences
Shelbyville’s climate means both renters and homeowners should budget for higher utility costs, especially in summer. Apartments typically have lower utility bills due to smaller square footage and greater efficiency. The average renter pays around $150 per month for electricity, water, and trash service.
Houses generally have higher utility costs, averaging $250 or more per month. Older homes may have higher bills due to less efficient HVAC systems and appliances. Homeowners also need to budget for routine maintenance like lawn care, gutter cleaning, and pest control, which can add $100 to $300 per month depending on the property.
5-Year Rent vs Buy Outlook
Over a 5-year period, renting in Shelbyville is typically cheaper than buying a comparable home. Assuming a 2-bedroom apartment rented for $1,300 per month and a $350,000 home purchased with a 30-year mortgage at 3.5% interest, the total costs break down as follows:
- Renting: $1,300 x 12 months x 5 years = $78,000
- Buying: $1,950 (mortgage) + $270 (taxes) + $300 (HOA) + $250 (utilities) + $200 (maintenance) = $2,970 per month x 12 months x 5 years = $178,200
Of course, this comparison doesn’t account for the equity gained through homeownership or the potential for home values to appreciate over time. It also assumes rents and home prices remain stable, which is unlikely. Prospective buyers should also consider their [moving company costs](https://indexyard.com/best-moving-companies-guide/) when evaluating the rent vs buy decision.
FAQs About Housing Costs in Shelbyville
How much are HOA fees in Shelbyville?
HOA fees in Shelbyville typically range from $200 to $400 per month, depending on the community amenities and services provided.
What is the property tax rate in Shelbyville?
The property tax rate in Shelbyville is $0.92 per $100 of assessed value as of 2025. The Shelby County rate is slightly lower at $0.84 per $100.
Is renting cheaper than buying long-term in Shelbyville?
Over a 5-year period, renting is usually cheaper than buying in Shelbyville. However, this can vary depending on the specific property and doesn’t account for the equity gained through homeownership.
Do houses have higher utility costs than apartments?
Yes, houses in Shelbyville typically have higher utility costs than apartments due to larger square footage and varying efficiency of HVAC systems and appliances. Houses also have additional maintenance expenses like lawn care and pest control.
What’s the monthly cost difference between apartments and houses in Shelbyville?
As of 2025, the typical monthly cost for a 2-bedroom apartment in Shelbyville is around $1,470 including rent and utilities. A comparable 3-bedroom house costs $2,550 to $2,850 per month when factoring in mortgage payments, taxes, insurance, HOA fees, utilities, and maintenance.
Making Smart Housing Choices in Shelbyville
When deciding whether to rent or buy a home in Shelbyville, it’s important to look beyond the monthly payment and consider the full picture of housing costs. For renters, this means factoring in not just rent but also utilities, renters insurance, and any parking or pet fees. Homeowners need to account for property taxes, HOA fees, utilities, maintenance, and insurance in addition to their mortgage payment.
It’s also wise to consider your short- and long-term housing needs. Are you planning to stay in Shelbyville for several years or are you likely to move sooner? Renting may be the better choice if your job or family situation is likely to change in the near future. But if you’re ready to put down roots, homeownership can provide stability and the opportunity to build equity over time.
No matter your housing choice, make sure to budget accordingly and plan for the true [cost of living in Shelbyville](/shelbyville-ky/cost-overview/). In addition to housing, you’ll need to account for other essential [monthly expenses](/shelbyville-ky/monthly-budget/) like food, transportation, healthcare, and childcare. By taking a comprehensive look at your finances, you can make a smart, sustainable housing decision in Shelbyville.