Dive into the cost of living in Louisville, KY, with this guide, where we’ll cover several of the average expenses in the city, from charming neighborhoods with affordable housing to grocery, utility, and healthcare prices. Let's explore just how much it costs to call Derby City home. 

Summary:

• Cost of Living in Louisville, KY
  • Housing Costs in Louisville
  • Average Cost of Utilities in Louisville, KY
  • Food Expenses in Louisville
  • Living Wage Louisville, KY
• Healthcare and Transportation Expenses in Louisville, KY
  • Healthcare Costs in Louisville
  • Transportation Expenses in Louisville
  • Access to Healthcare and Transportation Services
• Louisville, KY, Cost of Living Comparisons
• Average Cost of a New Construction Home in Louisville by Neighborhood
• Conclusion

Cost of Living in Louisville, KY

Louisville, Kentucky, is a hidden gem of a city with a cost of living that’s 4% lower than the national average, according to Payscale® as of January 2024. This affordability applies to several essentials of daily life, from reasonably priced housing options to budget-friendly health care. Let’s take a look at the average cost of living in Louisville, KY. 

Housing Costs in Louisville

Whether it’s the charm of historic homes in Old Louisville or the contemporary design of developments in the East End that appeals to you, Louisville blends the diversity of a big city with the feel of a small town. 

The cost of housing alone makes Louisville an appealing option for those looking for big-city life on a more affordable scale. In 2023, housing costs in Louisville were a staggering 21% lower than the national average per Payscale. In December 2023, the median listing home sale price was $250K, according to Realtor.com®. For rentals, Apartments.com® reports you can expect to spend $1,033 monthly for a one-bedroom apartment, about $1,197 for a two-bedroom, and roughly $1,513 for a three-bedroom as of January 2024.

Average Cost of Utilities in Louisville, KY

Utility prices in Louisville are 5% higher than the national average, according to Payscale’s data as of January 2024. However, when you weigh these living costs against the ultra-low cost of housing, it’s worth it. Payscale finds the average monthly utility expenses in Louisville range from $186 for energy usage to $200 for phone services.

Food Expenses in Louisville

Louisville offers numerous food shopping options, including supermarkets, local markets, and specialty stores, helping give residents flexibility based on their preferences and budget. As of January 2024, grocery prices in the city are 6% lower than the national average, according to Payscale. Here’s a list of basic food prices in Louisville: 

• A loaf of bread runs about $3.63.
• A gallon of milk averages $2.27.
• A carton of eggs is approximately $2.10.
• A batch of bananas runs $3.14.
• A hamburger costs roughly $4.80.

Living Wage Louisville, KY

A living wage is the minimum income necessary for a person or household to cover basic living expenses, such as housing, food, health care, transportation, and other essential needs. 

To meet Louisville, KY, living costs, according to February 2024 data from the MIT® Living Wage Calculator, one adult with no children should earn $16.17 an hour, whereas a household of two working adults with two children needs an hourly wage of $24.35 per adult.

Healthcare and Transportation Expenses in Louisville, KY

Aside from housing and food, gas and medical bills can be significant expenses. Here's a snapshot of what to expect for healthcare and transportation expenses in Louisville.

Healthcare Costs in Louisville

Louisville is home to several hospitals, clinics, and healthcare providers, making medical care accessible for residents. In fact, the Louisville, KY, living cost for health care is 24% lower than the national average, according to Payscale in January 2024:

• A doctor's appointment is approximately $94.56.
• A trip to the dentist runs about $81.58.
• An eye exam with an optometrist is roughly $89.07.
• Filling a prescription averages $348.39.

Transportation Expenses in Louisville

Getting around Louisville is manageable; however, transportation expenses like bus fares and gas prices are 13% higher than the national average, reports Payscale in January 2024. AAA® finds a gallon of regular gas is approximately $2.93 in January 2024, and a 30-day public transportation pass for the TARC bus system typically costs $50. The city's layout is conducive to reasonable commuting distances for those who prefer driving.

Access to Healthcare and Transportation Services

The city's residents benefit from a network of healthcare facilities, including hospitals, clinics, and specialized services, putting quality medical care within reach. Louisville's transportation infrastructure offers public transit options, bike-friendly routes, and well-maintained roads. Overall, Louisville is a city where essential services are accessible, supporting residents’ well-being and convenience.

Louisville, KY, Cost of Living Comparisons

Now that you know how affordable Derby City is, how does the cost of living in Louisville compare to other nearby major metro cities? 

• Louisville vs. Cincinnati, Ohio: Cincinnati is comparable to Louisville, with a 4% lower cost of living than the national average as of January 2024, per Payscale. As of December 2023, Redfin® reports home prices surged by 10.4% from the previous year, with a median selling price of $260K. While housing costs may be more elevated in Cincinnati, residents can enjoy an economical lifestyle both there and in Louisville.
  
  
• Louisville vs. Nashville, Tennessee: Nashville, renowned for its music scene, presents a slightly higher cost of living than Louisville but is still 2% lower than the national average, according to Payscale’s January 2024 data. However, Payscale also puts Nashville housing costs 6% higher than the national average, though utilities are 11% lower. Realtor.com reports that housing prices are notably steeper, with a median home sale price of $575K in December 2023. In this comparison, Louisville tends to be more affordable than Nashville.
  
  
• Louisville vs. Indianapolis, Indiana: Both Indianapolis and Louisville offer lower living costs than larger metropolitan areas. However, Indianapolis offers a slightly lower cost of living, approximately 7% below the national average as of January 2024, reports Payscale. In December 2023, Realtor.com found the median home sale price in Indianapolis to be $250K. Although both cities offer a reasonable cost of living with comparatively lower housing expenses, Indianapolis may be a more affordable option for individuals seeking similar amenities and opportunities.

Average Cost of a New Construction Home in Louisville by Neighborhood

Now that we have a better idea of Louisville’s cost of living, let’s look at new housing expenses. Below is a sample of the average cost of a new construction home in Louisville, KY, in some of its well-known neighborhoods and suburbs.

Anchorage

Anchorage, located on the eastern side of Louisville, is a suburban gem celebrated for its historical allure, expansive estate-style residences, and tight-knit community. The cost to build a new home in Anchorage, according to NewHomeSource™ as of January 2024, ranges from the upper $200Ks to the upper $600Ks. Our Anchorage new construction homes at Fordham Park start in the upper $300Ks, and our new build homes in Eagle Ridge start in the low $400Ks.

Buckner

Buckner, a charming enclave in greater Louisville, offers a warm community vibe and a genuine small-town experience. Dotted with fun stores, friendly faces, and a laid-back atmosphere, Buckner quickly transforms neighbors into friends and local shops into go-to spots. The cost to build a new home in Buckner in January 2024, according to NewHomeSource, ranges from the mid $300Ks to the upper $600Ks. Our new construction homes in Buckner, KY, start in the low $300Ks. Travel east of Buckner, and you can explore our new construction homes in La Grange, KY.

Shelbyville

Shelbyville is a Kentucky suburb just east of Louisville, offering a blend of local boutiques and a quaint yet lively downtown. The cost to build a new home in Shelbyville, according to NewHomeSource as of January 2024, ranges from the mid $200Ks to upper $500Ks. Our new construction homes in Shelbyville, KY, start in the low $300Ks.

South Louisville

South Louisville is known for its friendly residents and tight-knit neighborhoods. With landmarks like the historic Churchill Downs and the Kentucky Exposition Center, South Louisville is culturally rich and has abundant entertainment and recreational activities. The cost to build a new home in South Louisville as of January 2024, according to NewHomeSource, ranges from the upper $200Ks to the low $500Ks. Our South Louisville new construction homes at Pinecrest start in the upper $200Ks.

Simpsonville

Simpsonville is an attractive suburb near Louisville. Simpsonville's proximity to Louisville lets residents enjoy a suburban lifestyle without sacrificing the conveniences and amenities of the nearby city. The cost to build a new home in Simpsonville, according to NewHomeSource as of January 2024, ranges from the upper $200Ks to the low $500Ks. Our Simpsonville area new construction homes at Catalpa Farms start in the mid $300Ks.

Jeffersontown (J-Town)

Jeffersontown, affectionately called J-Town, is a suburb in the Louisville metropolitan area with a diverse array of stores, restaurants, and parks. Jeffersontown's strategic location offers easy access to major highways, making it a convenient hub for both work and play. The cost to build a new home in J-Town, according to NewHomeSource in January 2024, ranges from the mid $300Ks to the upper $500Ks. Our Jeffersontown new construction homes in The Trails at Belmond start in the mid $300Ks.

Conclusion

If you’re seeking city living without the big-city expenses, Louisville, KY, could be the ideal spot for you. With a cost of living 4% lower than the national average, per Payscale, you can save on groceries, health care, and more. The housing market is more affordable, too, with prices 21% below the national average and a median home price of $250K. Louisville, Kentucky, living costs make this city a wonderfully affordable place to call home without sacrificing the fun and excitement of an urban lifestyle. 

Explore new construction homes in Louisville, KY, today or browse more Pulte® blogs.

Written By: Jordan Thomson, Freelance Writer