Key Findings
- At 39.7%, Louisville’s rental rate has slightly decreased from 40.38% a decade prior, but it’s not been a steady journey, with huge year-on-year fluctuation across the decade.
- After holding steady at around 40% for several years, Louisville’s renter share fell significantly in 2020 as the pandemic drove many to move in with family or combine households.
- Louisville’s rental rate now outstrips the state of Kentucky (close to 32%). The city’s higher rate is likely caused by more job and study opportunities for younger renters here compared to other parts of the state.
Sitting on the border of Kentucky and Indiana, Louisville is a city synonymous with horse racing, bourbon, historic architecture, and steamboats. As the largest city in Kentucky, it’s certainly a popular choice for people from all walks of life.
With a renter concentration of just under 40%, the majority of households in Louisville are owner-occupied. Compared to other large cities in the country, where renters tend to make up the majority, this may seem like a low figure.
But, rentership rates have fluctuated in Derby City, and the reasons why can be complex. To understand these shifts, Point2Homes analyzed how rentership rates have evolved over the past decade and uncovered the complex factors driving these changes.
At Nearly 40%, Louisville’s Rentership Rate Tops the State Average
Compared to Kentucky, the latest data shows Louisville’s rentership rate was drastically higher in 2024: 39.7% compared to just 31.9% statewide.
The University of Louisville could be responsible for boosting the number of renters in the city compared to the rest of Kentucky. However, the city also offers a wider pool of job opportunities compared to smaller towns and rural areas. This goes a long way toward attracting young professionals — a demographic that is traditionally more likely to rent than own.
A Decade of Renting in Kentucky’s Largest City: Louisville’s Rentership Held Steady, Until It Didn’t
Louisville’s rentership rate remained relatively stable between 2014 and 2019, averaging around 40% and peaking at nearly 42.2% in 2016. However, the share of renters fell sharply in 2020, likely a direct result of the COVID-19 pandemic, which prompted many residents to leave the city or at least vacate their rentals.
The number of students at the University of Louisville alone accounts for a significant share of the city’s renter population. With no classes to attend and lockdowns in place, there’s a good chance a lot of them packed up and went back to live at home for the duration. Add in other transient members of the population who are more likely to rent, such as contract workers, and it’s easy to see how rates could have dropped so sharply.
In 2021, rentership rates shot back up again to 38.8%, but since then have yet to reach pre-pandemic highs. However, it appears that renter numbers are once more on the rise in Louisville, rising from 37.1% in 2023 to 39.7% in 2024.
But Why Is Louisville’s Rentership Rate Lower Than Other Large Cities?
While the rentership rate in Louisville has remained somewhat stable over the past decade, there’s no escaping the fact that the city is home to fewer renters. Compared to other renter-majority major cities (such as Richmond, VA; Baltimore, MD; or Ohio’s big three), numerous factors keep rentership rates relatively low in Louisville
It’s important to look at the population living here. With a median age of 38 and the 15-24 age range the smallest demographic, Louisville doesn’t offer the fast-paced vibe that places such as Columbus do.
Instead, the city is more popular with families, as family households make up over 58% of the total households in Louisville. This fact is backed up by the housing landscape, which is largely comprised of single-family homes: over 68% of Louisville’s housing stock is made up of single-family units.
Louisville’s rentership trends over the past decade reveal a city that values stability and community, even amid sudden shifts in housing. With a strong base of homeowners and a steadily recovering rental market, the city has the potential to strike a balance that supports both long-term residents and newcomers alike.
Beyond housing, Louisville’s accessibility adds to its appeal. The city’s well-connected public transport system makes it easier for residents to commute, study, and explore its many neighborhoods. Combined with the relatively affordable cost of living, diverse job market, and welcoming atmosphere, these factors make Louisville not just an interesting case study in housing but a great place to live.
Methodology
Point2Homes.com is a real estate listing portal for rental homes across the United States. Part of Yardi Systems, Point2Homes covers housing trends and news through comprehensive studies that draw from internal data, public records, governmental sources, and online research.
- For this study, we looked at rentership rates in Louisville and the state of Kentucky.
- The report uses data on rentership evolution between 2014 and 2024, as per the U.S. Census Bureau, ACS 1-year estimates. Since ACS 1-year estimates were not published for 2020, data from the Decennial Census was used instead.
- Image: Jejack06/Shutterstock.com
Fair use and redistribution
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