LEXINGTON, Ky. (LEX 18) — A new study that analyzed the hidden costs of owning a home in each state in America found that Kentucky is the most affordable in the nation.
The report by financial services company Bankrate, looked at the average aggregate cost of property taxes, insurance costs, maintenance, and utility bills.
Bankrate reported that the national average is $18,118 per year.
Kentucky's average is $11,559, making it the cheapest state in the nation.
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The averages have climbed significantly in the last four years. In 2020, the national average was just $14,428.
Brokers like Christina Dudek of Coldwell Banker McMahan in Lexington, said more people across the country are finding Kentucky an appealing place to relocate.
"Because our home prices and our cost of living is so good, we are having some competition from people who are moving from out of state," Dudek said.
Cynthia Trgo of Bluegrass Home Group also said she has seen an influx of people looking to move to Kentucky from around the country.
"We're seeing a lot of buyers come in from other states, especially west coast," Trgo said. "Just cost of living in general, expenses with home ownership, is much less expensive than other states across the nation."
Nationwide, the median home price has climbed above $400,000.
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In Fayette County, the median sales price rests at $330,000, according to data from Bluegrass REALTORS. Homes in the area are on the market for just three days on average.
The market is moving so quickly in Kentucky it's difficult to keep up.
"There's not enough inventory, which means there's not enough houses for people who want to buy a house," Dudek said.
With interest rates expected to drop this year, both Dudek and Trgo are encouraging people to start looking if they're hoping to purchase a home in the near future.
