H1 2025 Central Kentucky Multifamily Market Report
Sales Metrics
We conducted an analysis of apartment sales segmented by unit size and asset class, comparing current pricing trends with those of the previous year. Our findings indicate minimal overall change: transaction volume remains subdued, B Class assets continue to dominate sales activity, and although C Class prices have increased, market directionality remains uncertain—reflecting sentiments recently expressed by buyers.
H1 2024 vs H1 2025 Transaction Volume
Investors are actively pursuing cash flowing, stabilized deals more than any other product type.
YTD there are 34 multifamily transactions totaling $331M in sales volume: this is very similar to previous YTD data.
Transaction volume remains muted. Large multifamily transactions were down +50% in 2024 compares to levels in previous years, and are continuing the same trend in 2025.
Sales Market Analysis of 100+ Units Multifamily properties in Louisville-Lexington MSA including market rate and subsidized properties.
- B Class multifamily has the highest transaction volume outpacing both A Class and C class Apartments combined.
- Smaller C Class properties experienced a significant increase in average price per unit (+$19,660/unit) compared to last year.
H1 2025 vs 2024 AVG PPU Comparison | By Property Class
AVG 10-Year Treasury Yield By Quarter
As more transactions are finalized and additional data becomes available, the ability to draw more meaningful comparisons is expected to improve. Sellers continue to hold out for more favorable market conditions, while buyers remain reluctant to make acquisitions based on proforma valuations. However, there is optimism that anticipated interest rate cuts and the reinstatement of 100% bonus depreciation could lead to an increase in transaction volume over the next two quarters.
