Kentucky Is in Good Standing With Affordability and Homebuilding: Can Gov. Beshear Keep It Growing?

Kentucky’s housing market continues to deliver on affordability and steady growth.

The state earned a C+ on the Realtor.com® State-by-State Housing Report Card, part of the Let America Build campaign that evaluates how states balance housing costs and new construction.

While doing well, this isn't the case in much of the rest of the country. Hoping to spur on action, President Donald Trump recently put pressure on large homebuilders to increase construction nationwide. In a post on his Truth Social platform in early October, he accused major builders of hoarding lots to prop up prices — likening them to OPEC, which restricts oil output to maintain high prices.

“They’re my friends … but now, they can get Financing, and they have to start building Homes. They’re sitting on 2 Million empty lots, A RECORD,” Trump wrote. He urged Fannie Mae and Freddie Mac to intervene and “get Big Homebuilders going” in order to “restore the American Dream.” 

Kentucky is proving that sustainable building and affordability can coexist, but how are they making that possible?

A healthy housing market

Kentucky scored 58 overall, landing among the better-performing states nationwide. The median listing price of $304,296 in 2024 is well below the national average, while the median household income of $62,837 keeps homeownership within reach for much of the population. The Realtor Affordability Score came in at 0.75, indicating that typical Kentucky buyers can still afford a broad range of available listings.

The state’s construction outlook remains solid. Kentucky accounted for 1.1% of all new home permits nationwide in 2024, roughly matching its share of the U.S. population. The permit-to-population ratio shows healthy alignment between demand and new supply. The new construction premium—the difference between prices for new and existing homes—was 32.3%, signaling that new builds remain relatively affordable and continue to attract buyers looking for modern options.

Which is good, considering that many other states are falling behind

“America is short more than 4.7 million homes, and every new home built helps close that gap while fueling local economies," says Shannon McGahn, executive vice president and chief advocacy officer at the National Association of Realtors®.

"NAR research shows that the U.S. has faced a persistent housing shortage for more than a decade, driving up prices and limiting options for buyers. Expanding housing supply creates jobs, supports small businesses, and affords families the opportunity to build generational wealth.”

A regional advantage

According to the most recent Realtor.com New Construction Insights report, the South and Midwest continue to lead the nation in affordability and homebuilding activity.

The median listing price for new homes nationwide stood at $450,797, nearly flat year over year, while resale prices rose 2.4%. This lowered the national new construction premium to 7.8%, the smallest on record and a clear sign that new builds are offering more competitive pricing than ever before.

Kentucky benefits from these same regional trends. With moderate land costs and a supportive environment for builders, the state has avoided the inventory crunch that plagues much of the Northeast and West.

Governor Beshear’s housing investments

While no specific provisions have been added to recent legislation targeting new home builds on a widespread scale, Governor Andy Beshear has made recovery housing for disaster relief a priority.

After some historic flooding at the start of 2025, Governor Beshear pledged $6.2 million in Disaster Recovery funds to go towards creating new housing for victims. Part of those funds went towards transforming a former medical building into into 18 new and affordable apartments

Today, Gov. Andy Beshear announced that a former medical building will be transformed into 18 new and affordable apartments for flood victims in Jackson.

“I made a promise to be there for the people of Eastern Kentucky until every structure, home and life is rebuilt,” Gov. Beshear said in a release. “That’s a promise I’m going to keep, regardless of the challenges we face. Jackson has been through the very worst, and they deserve the very best.”

He also encouraged people impacted to apply for recovery housing support with the newly launched online form at housingcantwait.org.

“Our promise wasn’t just to rebuild, but to provide a better life,” the governor said.

Months later, in September, Gov. Beshear joined local leaders and representatives of The Hope Initiative to present keys to new homes in Princeton and Mayfield for families who lost their houses in the deadly December 2021 tornadoes.

“After such heartbreak and loss, today is a day of healing and hope as we see these two families — who have been through so much — enter their new homes that will provide the safety and security they deserve,” Beshear said at the ceremony. “These home dedications are a reminder of how Kentuckians take care of each other, and we will be here for our neighbors until every structure, home and life is rebuilt.”

This article was produced with editorial input from Dina Sartore-Bodo and Gabriella Iannetta.