Where Can You Find Affordable Homes in Lexington?

By Bob Sophiea

Founder and CEO of New Home Collective, established the company in 2014 with a mission to revolutionize the real estate industry.

Lexington is still one of the most affordable mid-sized cities in the U.S, but finding the right spot in the right neighborhood at the right price isn’t always easy.

Today, I want to highlight a few parts of Lexington that often go unnoticed. These neighborhoods might not appear on popular blogs, but they could be perfect for your budget and lifestyle.

To give you a sense of the city, here are some quick facts:

• Population: Approximately 318,000

• Average Home Price: Around $290,000

• Average Rent: $1,200 to $1,300 for a two-bedroom apartment

• Cost of Living: About 8% cheaper than the national average

This means your money goes further here than it would in other cities like Nashville, Atlanta, or even Louisville. Lexington offers numerous jobs in healthcare, education, and the horse industry. We’re the horse capital of the world, after all, which attracts many newcomers. The real estate market is active, but not as frantic as in some larger cities.

If you’re considering moving to Lexington or currently live here and are struggling to find an affordable home that meets your needs, let’s explore six neighborhoods to consider in Lexington, where you can find solid homes at great values.

1. Dixie Plantation in Cardinal Valley. These older neighborhoods can actually be a good thing. Most homes were built in the 1960s and 1970s and are solid brick ranches that have stood the test of time.

Homes here typically sell for between $160,000 and $230,000, making it significant in today’s market. You’re close to New Circle Road and about ten minutes from downtown, with plenty of shopping and dining options nearby. This area is ideal for first-time homebuyers looking for a property they can move into now and update gradually.

2. Winburn-Eastland. If you don’t mind doing a little work or want more space for your money, check out this area. Prices typically range from $170,000 to $240,000, and you often get more square footage here than in other neighborhoods. This part of town is improving, with new businesses opening and schools continuously getting better.

3. Meadowthorpe. This neighborhood is somewhat of a hidden gem, close to downtown, with plenty of charm: big trees, older homes with character, and small local shops within walking distance.

Homes here generally sell for around $200,000 to $280,000. While it’s a bit pricier than the previous neighborhoods, you’re paying for a peaceful, walkable community near the city, just minutes from the Distillery District, which is known for food, live music, and drinks.

4. Hollow Creek. If you’re seeking a quiet place, this area could be a perfect fit. Located off Man O’ War, it’s a bit further out but calm and well-kept. You’ll find ranch-style and split-level homes here, usually priced between $180,000 and $240,000.

There’s no HOA, which many people appreciate, and you’ll enjoy spacious yards and mature trees. This is ideal if you want space without being too far from the city.

5. Kenawood. This neighborhood features large yards, easy access to Hamburg shopping, and well-built homes. You’re close to restaurants, stores, and everything you need, but prices are lower than in Hamburg itself. Most homes sell between $190,000 and $250,000, and many have been updated over the years. This is a down-to-earth, practical neighborhood with lots of potential.

6. Liberty Road Area. Near Yates Elementary, this area is becoming increasingly popular, especially among young families. It’s conveniently near I-75, making commuting or traveling easier. You’ll find schools, gas stations, and grocery stores nearby.

Homes here typically range from about $185,000 to $260,000, featuring both older homes and newer builds. It’s a growing area, and prices remain reasonable for now.

What makes these neighborhoods special? Lexington’s hidden neighborhoods offer unique advantages that set them apart from the rest. Here are a few key factors that make these areas worth considering:

• Affordability. These neighborhoods still offer affordable options, which is becoming harder to find.

• Growth. Many areas are experiencing new growth, such as improved schools and new restaurants, and businesses.

• Accessibility. Lexington’s layout makes it easy to get around, ensuring you’re never far from important spots like UC’s campus, Keeneland, Fayette Mall, or downtown.

Also, when searching for ideal homes in the Lexington market, here are a few essential tips to keep in mind:

• Don’t skip homes with poor photos. Some of the best deals have unflattering photos online, so go see it in person.

• Work with a local agent. A knowledgeable real estate agent can help you spot a great deal before it’s gone.

• Act quickly. Homes under $250,000 don’t stay on the market long, especially if they’re move-in ready.

• Ask about loan programs. There are resources in Kentucky that can assist with down payments or offer lower interest rates, particularly for first-time homebuyers.

If you’re thinking about moving here or already live here and want to meet more people, come check out the group. We’ve started a Facebook group called Living in Lexington, KY. It’s a great place where you can ask questions, get real answers, and learn about what it’s like to live, work, and raise a family in Lexington.

For more guidance, you can book a call with us through this link: callnhc.com. You can also contact us directly at (859) 721-2200 or bob@nhc.com. Let’s build a plan that makes sense for you.