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Cost of living arbitrage is real — Louisville vs Nashville vs national average (with data)

I'm a real estate agent/investor in Louisville and I keep seeing people on this sub talk about Nashville, Austin, Boise — markets that got hyped and then corrected. Wanted to throw Louisville into the conversation because the numbers are kind of wild.

Median home prices:

  • National average: ~$415K
  • Nashville: ~$475K
  • Louisville: ~$265K

That's 39% below the national average and almost half of Nashville — a city that's only 3 hours away.

Meanwhile, Kentucky just had its second-best year ever for private-sector investment ($10.5B statewide, $5B+ in the Louisville metro). Ford, GE Appliances, Meta, Foxconn — all building or expanding here. UPS Worldport (largest automated package facility on Earth) is here. Humana is HQ'd here.

For investors: cap rates run 5.7% to 11%+, rent growth is 2.5% vs 1.1% nationally, and new rental supply is at an 8-year low.

The gap between Louisville and comparable metros is going to close. The question is just how fast.

I wrote up the full analysis with all the data points here: https://themorningbergeron.beehiiv.com/p/louisville-doesn-t-brag-so-i-will

Curious if anyone else is looking at Louisville or similar "under the radar" markets.

submitted by /u/LouInvestor
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source https://www.reddit.com/r/RealEstate/comments/1sdvnfm/cost_of_living_arbitrage_is_real_louisville_vs/
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