LOUISVILLE, Ky. (WDRB) — With increased rental costs and a lack of affordable housing options, more people in Louisville are spending nearly half of their income on rent.
At the same time, fewer rental units are being built. It’s a growing issue housing advocates warn is reaching crisis levels.
Kenneth Thompson and his wife are among those trying to keep up. They’re set to move into senior housing later this month after struggling to find something affordable.
“I know I hear about it a lot… it’s very expensive,” Thompson said. “For like, one bedroom, you pay so and so. On two bedrooms, you pay almost a thousand for it.”
Thompson’s wife eventually found a newer complex tailored to retirees. It’s a rare win in a housing market that’s growing tighter by the day.
“We knew we wanted to move this year,” he said. “My wife was just searching, and so she found that there.”
Across Louisville, housing options vary — new townhomes are going up in neighborhoods like Russell, while further west, single-family homes are more common. Regardless of location, affordability is a major concern.
Tony Curtis with the Metropolitan Housing Coalition said the city is tens of thousands of units short of what’s needed — especially for low-income residents.
“We need more units. It drives the price,” Curtis said. “We also have the unfortunate reality of interest rates being high, too.”
That lack of inventory — combined with high demand — is making it harder for people to find a place to live.
Louisville Metro Housing Authority is in the process of relocating hundreds of residents from Dosker Manor, and landlords are no longer required to accept Section 8 vouchers, cutting off another lifeline for low-income renters.
“We’re seeing a massive amount of people that are cost-burdened,” Curtis said. “If you spend over 30% of your income on housing, you’re considered cost-burdened. If it’s over 50%, you’re extremely cost-burdened.”
Making matters worse is the growing trend of large firms buying up single-family homes.
“There was a study a few years ago — a firm out of Austin, Texas, bought up 1,300 single-family homes in Louisville,” Curtis said. “We’re at the perfect nexus of a housing crisis here. Rental opportunities — there’s not enough of it. Prices are too high. Housing costs, interest rates — everything is pushing people out.”
Even owning a home is becoming harder to achieve. Starter homes are now being listed at prices far beyond reach for many families.
“You see starter homes consistently being put on the market — new builds — at $355,000,” Curtis said. “That’s not affordable to any entry-level homeowner. Especially not a single parent with children.”
While advocates agree that homeownership can offer stability, they also say solving this crisis won’t be easy — or cheap.
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