KY ranks 13th among hottest US housing markets in 2026. What’s the top spot in state?
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- Kentucky ranks 13th in 2026, with Lexington-Fayette the top KY metro.
- Analysis used eight metrics: prices, rent, permits, vacancies and relocation.
- Lower costs, manufacturing jobs and broadband attract buyers and remote workers.
Americans are searching for affordability in 2026, and with remote work opportunities, they’re finding it in smaller housing markets across the country — including Kentucky.
That’s the chief takeaway of a recent study from Becker & Poliakoff, a Florida-based law firm that looked at the hottest and coldest states for real estate this year, along with the trends driving those moves.
Kentucky ranked No. 13 among states with the hottest real estate markets, and Lexington and Fayette County was the top metro area in the Bluegrass State.
Becker & Poliakoff based its analysis of eight metrics across all 50 states and the District of Columbia. It considered factors such as growth in home prices, rent, employment, new home purchases, construction permits, rental vacancies, housing burden cost and population relocation.
Why is Central Kentucky the state’s most desirable market?
According to Mike Inman, president of Bluegrass Realtors, one leading factor may be as simple as more people becoming aware of the area.
“Central Kentucky real estate continues to be in high demand. Both locals and out-of-state buyers want to be in this area for a number of reasons,” Inman told the Herald-Leader in an emailed statement. “In fact, Lexington, Danville, Harrodsburg, Versailles, and other towns in the central Kentucky region have been featured recently in magazines or other publications as great places to live, work and retire.”
Inman also noted the area enjoys a high standard of living compared to other cities and states.
“Our cost of living is lower, wages are comparable, and we have many of the amenities that people are looking for. These come in the form of availability of shopping, entertainment, parks and recreation facilities, good schools and universities, and access to quality medical care,” Inman said.
Bluegrass Realtors credited other factors, including:
- Lower housing costs: the median home price in Central Kentucky is $275,000.
- Manufacturing hub: this includes Toyota and its many local suppliers, along with medical, pharmaceutical, aeronautical and military-related industries. The Harrodsburg-based Corning Glass recently won a $2.5 billion investment from Apple, as another example.
- Broadband investments that make living in rural areas more appealing to remote workers.
- Property, income and sales taxes are comparably lower than the rest of the country.
What are Kentucky’s hottest markets for real estate?
Overall, the state’s most active metro areas include Lexington, Clarksville, Huntington-Ashland, Cincinnati and Louisville, according to Karen Gillis, a spokesperson for Becker Law.
There are several factors that signal the Bluegrass State as an attractive market for moves, Gillis told the Herald-Leader in an email.
“Kentucky has a low housing cost burden (40.2% of renters spend at least 30% of their income on housing, No. 10), while it ranks 14th on annual rent increases (7.4%) and 15th on home price increases (index score of 3.84),” Gillis wrote.
What are the top 10 hottest real estate markets in the country?
According to the analysis, they include the following:
1. Idaho
2. South Carolina
3. Delaware
4. North Carolina
5. Utah
6. North Dakota
7. Wisconsin
8. Ohio
9. South Dakota
10. Nebraska
Idaho is the top state in the country because its housing market is hot but relatively affordable. It leads the country in new home builds (91 per 10,000 people) and has employment that’s growing at 1.5%, according to Becker Law.
Kentucky ranks 13th, just behind Alaska, but ahead of Virginia and Tennessee, respectively.
What are the coldest real estate markets in 2026?
Places like California, Hawaii, New York, Massachusetts, Florida and Washington, D.C. are among the country’s coldest real estate markets, according to Becker Law.
California — which ranked dead last at No. 51 — is troubled by affordability issues, not enough housing stock, high cost-burdens for renters, slow employment growth and a low rate of residential moves.
Do you have a question about housing or real estate in Lexington or Central Kentucky? We’d like to hear from you. Fill out our Know Your Kentucky form below or email ask@herald-leader.com.