Average Rent and Home Prices in Nicholasville, KY

The Housing Market in Nicholasville Today

Couple unpacking after moving into new home in Nicholasville, Kentucky
Settling into a new home is an exciting milestone for many Nicholasville residents.

The rental market in Nicholasville has seen steady growth in recent years, with the average rent for a 1-bedroom apartment increasing by 4.2% over the past 12 months to reach $950 per month. Despite this uptick, Nicholasville remains relatively affordable compared to nearby cities like Lexington.

On the homeownership front, inventory has tightened as more people look to purchase homes in this growing suburb of Lexington. The median sale price for a single-family home in Nicholasville currently stands at $225,000, up 6.1% year-over-year. New housing developments are rising downtown and in outlying areas to meet the increasing demand.

Economically, Nicholasville benefits from its proximity to major employers in the Lexington metro area as well as a strong local job market anchored by the healthcare and manufacturing sectors. This stability has helped fuel steady population growth and housing demand.

Renting in Nicholasville: What’s Typical?

For renters, Nicholasville offers a range of options from compact apartments to spacious townhomes. The average rent for a 1-bedroom apartment is $950 per month, while a 2-bedroom unit typically goes for around $1,150. These prices include basic utilities like water, sewer, and trash pickup in most cases.

Rent prices have been on an upward trajectory, increasing by about 4-5% annually in recent years as demand has grown. Availability is moderate, with an average vacancy rate of 6%. Popular renter areas include the downtown district and newer apartment complexes along the city’s main thoroughfares.

In terms of demographics, Nicholasville’s renter population skews younger, with many Millennials and Gen Zers opting for the flexibility of renting. However, the city also has a significant number of older renters, including retirees downsizing from larger homes.

Owning a Home in Nicholasville

For those looking to purchase a home, Nicholasville’s median sale price of $225,000 translates to an estimated monthly mortgage payment of $1,180 (assuming a 30-year fixed-rate mortgage with 20% down). On top of this, homeowners can expect to pay around $2,000 per year in property taxes.

Insurance costs vary depending on the age and size of the home but typically fall in the $800-1,200 range annually for a single-family house. Many neighborhoods also have Homeowners Association (HOA) fees, which average $200-300 per month and cover amenities like community pools, landscaping, and security.

All told, the typical monthly cost for owning a mid-range home in Nicholasville is around $1,800-2,450 when accounting for mortgage payments, taxes, insurance, utilities, and HOA dues. This is notably higher than the $950-1,150 renters pay but offers the long-term benefits of equity and stability.

Renters vs. Homeowners: Who Lives Where?

Nicholasville’s homeownership rate stands at 61%, slightly lower than the national average of 64%. This means a significant portion of the population – nearly 2 in 5 households – are renters.

In terms of living scenarios, young professionals tend to gravitate toward renting apartments downtown or in newer complexes with modern amenities. Families are more likely to own homes in residential neighborhoods, while retirees are a mix of long-time homeowners and recent downsizers now renting.

The main barriers to homeownership in Nicholasville are the upfront costs (down payment, closing costs) and qualifying for a mortgage. Rapidly rising home prices have made it harder for first-time buyers to afford a house. Culturally, there is still a strong preference for ownership, but many appreciate the flexibility renting provides.

Table: Typical Monthly Housing Costs in Nicholasville

Here’s what housing costs might look like each month in Nicholasville:

CostRenting (1BR)Owning
Rent/Mortgage$950$1,180
Property Tax$170
Utilities$120$250
Insurance$15 (renters)$100
HOA$250
Total$1,085$1,950

Estimates reflect mid-range properties and average usage.

What’s Driving Costs Up or Down?

Several factors are putting upward pressure on housing costs in Nicholasville. On the demand side, the city’s proximity to Lexington and strong local job market are attracting new residents and fueling competition for homes. Population growth has outpaced new construction, leading to a tighter supply.

Zoning changes have opened up more areas for dense multi-family development, which is increasing the supply of apartments. However, construction costs are rising due to inflation and supply chain issues, making it more expensive to build. These costs often get passed on to renters and buyers in the form of higher prices.

Mortgage interest rates are another variable to watch, as they directly impact affordability for potential homebuyers. Rates have been on the rise in 2022, making monthly payments more expensive. If this trend continues, it could price some buyers out of the market and increase rental demand.

FAQs About Housing in Nicholasville

  • Is Nicholasville affordable to live in? Nicholasville is relatively affordable compared to other parts of the Lexington metro area, with lower housing costs than the city proper. However, prices are rising faster than wages, making it harder for some to keep up.
  • Why are housing prices changing? A combination of population growth, limited supply, and rising construction costs are driving up prices for both renting and owning. Demand is strong due to Nicholasville’s attractive location and economy.
  • How does Nicholasville compare to nearby cities? Housing costs in Nicholasville are lower than in Lexington but higher than in more rural parts of Jessamine County. The city offers a balance of affordability and access to urban amenities.

Making Smart Housing Decisions in Nicholasville

Deciding whether to rent or buy in Nicholasville depends on your financial situation, life stage, and long-term goals. Renting offers flexibility and lower upfront costs but doesn’t build equity. Owning provides stability and wealth-building potential but comes with higher monthly expenses and maintenance responsibilities.

Key factors to consider include your income, savings, debt, credit score, and how long you plan to stay in the area. It’s also important to budget for the full cost of living in Nicholasville, not just housing. Use tools like monthly budget examples to estimate your expenses and determine what you can afford.

Whether you choose to rent or buy, shopping around, negotiating, and making energy-efficient upgrades can help you save on housing costs in Nicholasville. With a clear understanding of the market and your own needs, you can find the right place to call home in this growing Kentucky community.