Renting vs. Owning in Lexington: What You’ll Pay
When considering the cost of living in an apartment vs house in Lexington, it’s important to look at the big picture. The average rent for a 2BR apartment in Lexington is around $1,100 per month, while the average rent for a 3BR house in Lexington is $1,800/month. However, that’s just the beginning of the cost comparison.
Owning a home comes with additional expenses like property taxes, insurance, and maintenance that can add hundreds of dollars to your monthly budget. Renting an apartment typically includes some utilities and amenities, but you’ll have less space and control over your living environment. Let’s break down the numbers.
Table: Cost Comparison – Apartment vs House
Here’s a side-by-side breakdown of common monthly costs in Lexington:
| Expense | 2BR Apartment | 3BR House |
|---|---|---|
| Rent/Mortgage | $1,100 | $1,800 |
| Utilities (Electric, Gas, Water) | $150 | $250 |
| Internet | $60 | $70 |
| Insurance (Renters/Homeowners) | $15 | $100 |
| Maintenance & Repairs | $0 | $200 |
| HOA Fees | $0 | $50 |
| Total | $1,325 | $2,470 |
Estimates are for mid-range units with typical usage, expressed in gross monthly figures (pre-tax).
Utility and Upkeep Differences
In addition to higher base rent, houses in Lexington tend to have higher utility costs across the board. Key differences include:
- Larger square footage means more space to heat, cool, and light
- Older homes may have less efficient HVAC systems and insulation
- Water bills increase with outdoor irrigation and more bathrooms
- Lawn care and pest control fall on the homeowner
Apartments offer some cost-saving advantages like included water, trash service, and on-site maintenance staff to handle repairs. Newer complexes may also have energy-efficient appliances and windows. However, shared walls can lead to higher electric bills if neighbors keep different thermostat schedules.
Lifestyle Tradeoffs
Of course, monthly costs are just one factor in the apartment vs house decision. Lexington residents must also weigh lifestyle priorities like:
Many Lexington residents choose apartments for walkability, while families prefer houses for yard space. Young professionals value amenities and low-maintenance living, while established households need room to grow and personalize.
Apartments offer perks like pools, gyms, and social events, but less privacy and control over noise. Houses provide space to spread out and entertain, but come with added responsibilities like yardwork and maintenance. Consider factors like pets, parking, school districts, and commute times as well.
Which Is Cheaper Long Term in Lexington?
While renting is cheaper month-to-month, owning a home can be more cost-effective long term. Let’s compare total costs over 5 years, assuming 2% annual rent increases and 1% annual home value appreciation:
- Renting a 2BR apartment: $1,325 x 12 months x 5 years = $79,500 (plus 2% annual increases)
- Owning a 3BR house: $2,470 x 12 months x 5 years = $148,200 (minus 1% appreciation)
After 5 years, the homeowner has paid around $68,700 more in total monthly costs. However, they’ve also built nearly $40,000 in equity (assuming a $300,000 home value). The renter has paid less, but that money is gone forever.
Homeownership also offers tax benefits and more control over long-term housing costs. In similar cities, apartments typically cost $300-500 less per month than houses, but the gap narrows over time.
FAQs About Housing Costs in Lexington
How much more does a house cost per month?
In Lexington, a typical 3BR house costs about $1,145 more per month than a 2BR apartment when you factor in mortgage, taxes, insurance, and maintenance.
Do houses come with higher utility bills?
Yes, houses in Lexington tend to have 20-30% higher utility costs than apartments due to larger square footage, older systems, and more occupants.
Are apartments cheaper even with pet fees?
For most Lexington renters, apartments are still cheaper than houses even with pet rent and deposits factored in. A $35 monthly pet fee adds up to $2,100 over 5 years – far less than the extra costs of owning a home.
Making the Right Housing Choice in Lexington
So, is an apartment or house cheaper in Lexington? It depends on your budget, lifestyle, and long-term goals. Renting offers flexibility and predictable monthly costs, while owning builds equity and stability over time.
Do the math using a monthly budget calculator for Lexington and factor in expenses like property taxes and HOA fees. Tour different neighborhoods to get a sense of space, commutes, and community. Most importantly, crunch the numbers honestly to determine what you can comfortably afford.
Whether you choose the sleek downtown loft or charming Chevy Chase bungalow, Lexington offers diverse housing options for every life stage and budget. The key is finding the right fit for your needs and financial goals.