Building Costs Per Square Foot in the State of Kentucky – Single Family Homes

Last Updated on April 8, 2024 by admin

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As of 2024, building costs in the state of Kentucky are -6% below the national average. The charts below show a comparison of costs between luxury, semi-luxury, best, good, average and minimum standard single-family houses. Costs are also given for manufactured housing in five quality classes.

2024 Building Costs Per Square Foot for Single Family Homes in the State of Kentucky, USA

Class 1 – Luxury Homes – $360.19 to $571.59 per sqft

Class 2 – Semi Luxury Homes – $218.92 to $347.38 per sqft

Class 3 – Best Standard Homes – $141.65 to $222.51 per sqft

Class 4 – Good Standard Homes – $103.27 to $163.95 per sqft

Class 5 – Average Standard Homes – $83.85 to $132.91 per sqft

Class 6 – Minimum Standard  Homes – $66.13 to $104.91 per sqft

Kentucky Single Family Houses 2024 Building Costs

2024 Building Costs Per Square Foot for Manufactured Housing in the State of Kentucky, USA

Manufactured housing is composed of one or more prefabricated modular units which are delivered to the site and assembled on a RC foundation or slab.

Best Quality Housing – $131.35 to $151.24 per sqft

Good Quality Housing – $110.29 to $133.43 per sqft

Average Quality Housing – $88.84 to $116.20 per sqft

Low Average Quality Housing – $75.03 to $101.25 per sqft

Lowest Quality Housing – $64.28 to $89.56 per sqft

Kentucky Manufactured Housing 2024 Building Costs

2022 Residential Construction Market Analysis in the State of Kentucky, USA

Building costs are 4% below the national average in the state of Kentucky, and equivalent to the states of Alabama, Arizona, Georgia, North Carolina and Virginia. Kentucky, also known as the Bluegrass State, is a state that is attracting more and more people. From families who are looking to live in quieter towns, to investors who see a unique opportunity in this prosperous state, Kentucky offers a chance to anyone who wants to come and inhabit its nature.

Moving to a new state or choosing to invest in a real estate market you don’t know about is scary, and may not even be a good idea, so it’s always important to be as informed as possible. That is why we have prepared this article where we will show you a glimpse of how the real estate market is in Kentucky, as well as the residential construction market so that you can learn more about this and see that not everything is horses and fried chicken in Kentucky.

Kentucky State Construction Outlook

Kentucky is a true natural paradise and having so many fields and stables, many people forget that it is a state with a wide variety of properties, which you can buy for a very cheap price. The vast majority of its towns are rural, although if you are looking for the comfort of the city then you can go to Louisville or Richmond. In Louisville, you will find buildings and everything you can expect from life in the city. There are some buildings where the walls are large glass windows, and there are also others that continue with the typically exposed brick walls.

In Richmond you will not find such large buildings, they are usually between 4 and 10 floors. Lexington is a young and growing city; A large number of its inhabitants are between 20 and 50 years old, which shows you that not only its buildings are young. Compared to other parts of Kentucky here you will find the most modern and even a little edgy construction.

Kentucky State Housing Market Analysis and Forecast

The growth of the real estate market in Kentucky is completely amazing and most experts did not expect it before 2020. Due to the pandemic, home values ​​increased in all states, but Kentucky continued to offer relatively cheap prices, causing an increase in the number of sales.

Home sales numbers continue to rise year over year, but the meteoric rise in volume is largely due to the higher prices that are dominating the current housing market in other states. In the month of May 2022, 25% more houses were sold than in the same month during 2021, which is a surprising increase and is only replicated in a few other states.

The median sales price of Kentucky homes for April is up about 10% and all sales are selling for 12% more than the property’s appraised value. All this “price gouging” stuff might make you scared of buying or looking for the property if you’re not an investor and want to buy a house for your family, but there’s nothing to worry about as even with those price-gouging it’s still cheaper than other states.

Every month home values ​​increase by 0.97%, although this percentage increases if you are in the urban centers of the state. There are currently more than 7,000 homes listed in the real estate market and statistically, they take 50 days to sell, although this number is usually much lower depending on the type of property you are trying to sell.

Kentucky State Average House Price (Median Home Price)

The value of an average house in the state of Kentucky is $240,000 to buy it, although the estimated value is $199,000 (we talked about this in the previous point). There is a lot of demand and this is something sellers know, but if you are prepared to negotiate you can find good prices. Don’t forget that median home prices in larger urban centers like Louisville, Lexington, and Northern Kentucky are 30-35% lower than the United States as a whole.

You can find lower prices in cities like Owensboro and Frankfurt, while prices in Louisville, Richmond, and Elizabethtown tend to be higher. In any case, it is recommended that you look to buy in the last-mentioned cities if you want to invest since you will be able to sell the properties much faster and you will obtain more profits than in the other smaller towns.

Also if you are on a budget you can opt to buy cheaper properties, under $160,000 which you will probably have to restore but have a large plot of land and a good foundation. You can even find land from 0.20 acres to 3 acres for prices ranging from $20,000 to $50,000, and then use it to build whatever you want.

Proposed Residential Building Projects in Kentucky

In Lexington, there are a wide variety of projects to construct new buildings. Due to its young population, which tends not to form large families, a large number of buildings are being built that have 40 apartments with few rooms each, making it perfect for couples with few children, or people who live alone or with roommates.

The same thing happens in Louisville, although on the outskirts of the big city you can find some construction companies that are dedicated to building luxury homes. This is also something that is on the rise because it is a state where properties are sold cheap, and investors can build houses that look like mansions and sell them quickly.

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2020 Building Costs Per Square Foot for Single Family Homes in the State of Kentucky, USA

Building costs are 4% below the national average in the state of Kentucky, and equivalent to the states of Alabama, Arizona, Georgia, North Carolina and Virginia.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Kentucky ranges from $331.09 per sqft to $507.55 per sqft, with the average being $390.74 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Kentucky ranges from $201.23 per sqft to $308.45 per sqft, with the average being $237.47 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Kentucky ranges from $130.08 per sqft to $197.58 per sqft, with the average being $152.30 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Kentucky ranges from $94.93 per sqft to $145.58 per sqft, with the average being $112.04 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Kentucky ranges from $77.06 per sqft to $118.01 per sqft, with the average being $90.87 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Kentucky ranges from $60.78 per sqft to $93.16 per sqft, with the average being $71.70 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

List of 14 Metropolitan Areas/Cities in Kentucky – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 1439 municipalities (local governments) grouped into 120 counties in the state of Kentucky. The bar chart below indicates that building costs vary in each metro city/town. The construction cost per square foot in each of these metropolitan cities varies from the state and national average by a certain percentage based on the location factor also known as the local modifier.

The percentage deviation of building costs from the National Average for each metropolitan area in Kentucky is shown below.

If $X is the Average National Building Cost in the USA, then it will cost the following to build a residential property in each metro city/town in Kentucky:

Kentucky Average -4% (4% less than X)

• Campton 413-414 -11%
• Elizabethtown 427 -10%
• Hazard 417-418 -10%
• Pikeville 415-416 -8%
• London 407-409 -7%
• Bowling Green 421 -5%
• Hopkinsville 422 -5%
• Ashland 411-412 -4%
• Owensboro 423 -4%
• Paducah 420 0%
• Lexington 403-405 1%
• Covington 410 2%
• Louisville 400-402 2%
• Frankfort 406 7%

The Metropolitan Area List above as well as the Bar Graphs below shows that Campton is the cheapest city to build a private home in the state of Kentucky. Frankfort is the most expensive city to build a home. Building costs are -11% below the national average in the city of Campton, and 7% above the national average in Frankfort.

Cheapest Places To Build in Kentucky:

Campton is the cheapest to place to build at -11% below the national average, followed by Elizabethtown and Hazard at -10%. The third cheapest place to build is Pikeville at -8% below the national average. The fourth cheapest city to build a house is London at -7% below the national average. The fifth cheapest places to build a house are Bowling Green and Hopkinsville at -5% below the US average. The sixth cheapest places to build are Ashland and Owensboro at -4% below the USA average. Building costs in the City of Paducah are equivalent to the national average. Building costs in the City of Lexington are 1% above the US average. The cost of building a home in Covington and Louisville is 2% above the national average.

Expensive Places To Build in Kentucky:

If anything between 5% and 10% is considered expensive, then there is one such metropolitan area in the state of Kentucky. Building costs in Frankfort are 7% above the USA average.

More Expensive Places To Build in Kentucky:

If anything between 10% and 15% is considered more expensive, then there is no such metropolitan area in the state of Kentucky.

Very Expensive Places To Build in Kentucky

The most expensive places to build a house in the USA are those 15% above the national average. There are no such places in Kentucky.

Kentucky State Average Costs:

Private home building costs in the state of Kentucky are -4% below the US average. Building cost rates in the metropolitan areas of Bowling Green and Hopkinsville are closer to the Kentucky state average by a deviation of 1%. Construction costs in Ashland and Owensboro are equivalent to the state average. Residential development costs in Paducah are equivalent to the national average. Frankfort is the most expensive city to build a home in Kentucky, and the state of Kentucky is number 14 on the national ascending costs scale.