What's the Cost of Living in Louisville, KY?

August 21st, 2023

What's the Cost of Living in Louisville, KY?

Cost of Living in Louisville, KY

Is Louisville an expensive place to live? Let's look a little deeper into the costs of living in Louisville, the average household income, and other typical expenses. 

Are you looking for an affordable place to live with a low cost of living? Look no further than Louisville, as it is known for fulfilling those criteria. Louisville is the largest city in Kentucky, situated close to the Ohio River and the Indiana border. It has a population of 628,594 residents.

Louisville is regarded as one of the Top 100 Best Cities in America due to its exceptional housing, flourishing economy, and dependable transportation system.

This Kentucky city is highly sought-after for its many attractions and prime location close to everything. Its thriving economy also makes it an excellent choice for those seeking a place with everything.

If you're considering relocating, you may want to explore the beautiful homes for sale in Louisville and other available real estate in Kentucky. Louisville is known as the "city of opportunity" and offers a thriving community.

Keep reading to learn more about the cost of living in Louisville. 

Cost of Living Louisville

Despite being the largest and most popular city in Kentucky, its cost of living is 4 percent lower than the national average. The amount of money needed to live varies depending on different factors. For instance, monthly utility expenses can range from $200 to $300, while groceries may cost around $400 per month.

The estimates of the cost of living are mainly based on income and living conditions. However, this city is relatively more affordable than other cities of a similar size in the United States.

Bridge going into Louisville during sunset

Breaking down the number into categories:

  • Housing: 21 percent lower than the national average. 
  • Utilities: 5 percent higher. 
  • Transportation (bus fares and gas): 13 percent higher. 
  • Food: 6 percent lower. 
  • Healthcare: 24 percent lower. 

The cost of living in different places varies depending on an individual's lifestyle and occupation. To live comfortably in Louisville, an income of about $334,440 is perfect. 

Below are some of the median prices of things in Louisville to help you have a better understanding of what things are like in this city!

Cost of Living Expense Median Price 
Median Home Price $335,319
Median Rent  $1,080
Gas $3.84
Bunch of Bananas $3.14

Sourced from Payscale

Real Estate

Louisville has housing costs that are 21 percent lower than the national average, and its housing market is more competitive than neighboring areas.

The real estate market in Louisville is flourishing thanks to its stable economy. According to statistics, most homes are bought by people from outside the area who want to live in the metropolitan region.

Neighborhood overview in Louisville KY

In Louisville, the median home price is $355,319, and the median rent price is approximately $1,080 per month. It's important to note that the housing market in Louisville is currently in favor of sellers, resulting in higher prices and quicker property sales.

Home prices in this area rose by 1.2 percent in 2023 when compared to the previous year. Typically, homes listed for sale here receive an average of three offers and sell within approximately 20 days on the market.

If you are considering a move to this area, it is important to stay aware of the market trends. Check out new construction homes, single-family homes, and gated community homes for sale in Louisville. 

Need help deciding where to live in Louisville, check out the best neighborhoods in Lousiville for some help. 



The median individual income in Lousiville, according to the United States Census Bureau, is $30,874, while the household median income is $54,929.

The Louisville metropolitan area has seen a notable rise in job opportunities, impressive job growth, new business establishments, and capital investments. This growth can be attributed to the region's excellent quality of life and reasonable cost of living.

The unemployment rate in Louisville has sadly always been an issue, but it has dropped since the pandemic and is back to about 4.4 percent. 

Louisville is home to numerous thriving industries, with the most in-demand being healthcare, social assistance, manufacturing, retail trade, transportation, warehousing, accommodation, and finance.

If you are searching for a place with a varied economy and numerous job opportunities, then this would be an ideal location. 


In Louisville, the energy bills monthly will cost around $196.70. On average, a household here will consume 1,130 kWh/month. 

However, like many things, the utilities are lower than the national average. This city practices deregulated electricity supply so residents can buy power from any company, while the primary provider is Louisville Gas and Electric

The amount you pay for internet will vary according to your provider and the type of connection you use. The average cost for residents is around $40 per month.

Just to let you know, while utilities in this area are generally less expensive than in other parts of the country, it's important to remember that these figures are fixed, and actual costs will vary based on individual usage and provider.


Louisville offers affordable groceries with prices 6 percent lower than the national average. On average, residents can expect to spend around $150 per month on groceries in this city.

It's worth noting that dining out in this area is typically 6 percent less expensive than in other parts of the country. Of course, the exact price will vary depending on the restaurant and the number of people in your party.

The cost of food is a significant portion of our overall living expenses, but it often goes unnoticed. To live more affordably, it is important to budget wisely for your food expenses.

Just so you know, the cost of food can be different depending on where you shop for groceries, your dietary preferences, and the size of your household. These expenses will be unique to each individual living in this city.

Certain dishes, like Derby Pie, Hot Brown sandwiches, and benedictine spread, give off the Lousiville charm. If you are a foodie, then you are in the right place because Lousiville was ranked among the top 10 foodie cities in the nation. 

Derby Pie in Louisville KY

Below are some local favorite restaurants to check out. 


921 Swan St, Louisville, KY 40204 - $$

This is a tiny sport that serves creative pub grub like duck fat fries, plus various beers, all in baseball digs. You can order pickup or delivery through their website as well. 

Proof on Main

702 W Main St, Louisville, KY 40202 - $$

This is a contemporary American restaurant with artwork and has locally sourced Southern fare in a distinguished, airy, 21c Museum Hotel eatery. You can order online or even reserve a table ahead of time through their website. 

Merle's Whiskey Kitchen

122 W Main St, Louisville, KY, 40202 - $$

This is a soul-food join that offers Southern cooking and bourbon in upbeat sigs with an antique bar and live music to enjoy as well. 


The cost of healthcare can vary greatly and can either be a relatively affordable or very expensive aspect of one's overall cost of living. In Louisville specifically, the average healthcare costs are 24% lower than the national average.

The cost of health insurance can vary depending on where you reside, the type of coverage you select, your age, and your medical requirements. It is crucial to find the most suitable rates to keep healthcare expenses reasonable.

Anthem Blue Cross and Blue Shield is the best company overall here that provides the optimal balance of cost, plan options, and customer service. 

Please keep in mind that healthcare costs and insurance premiums are specific to each person and can differ. On average, individuals in Kentucky can expect to spend approximately $7,111 per year on healthcare expenses. Additionally, monthly health insurance costs in this city are typically around $235.


The transportation expenses in Louisville, including bus fares and fuel costs, are roughly 13 percent more expensive than the national average. The primary cause for this discrepancy is the fact that Louisville is a metropolitan city.

In Lousiville, public transportation is provided by the Transit Authority of River City (TARC), which operated a fleet of over 200 buses. For one single ride, it will cost about $1.50, or for a monthly pass; it will cost $50.

Whether you choose to use your own transportation or rely on public transit, the costs in this city are generally higher than normal.

If you plan on working, it's important to familiarize yourself with average traffic times and the cost of gas. While the city is relatively walkable, it's common to use either public transit or your own vehicle to get around.

Major highway bridges in Louisville KY


Taxes are regulated by the Kentucky Department of Revenue.

In Louisville, the minimum combined sales tax rate for 2023 is 6 percent, which includes the state, county, and city sales tax rates. Currently, the state of Kentucky's sales tax rate is also 6 percent.

It's worth noting that property taxes in Kentucky make up 0.83 percent of the assessed home value. Additionally, it's important to consider that Kentucky's tax system ranks 18th overall on the 2023 State Business Tax Climate Index.


Is Louisville, Kentucky, expensive to live in?

In general, the cost of living in Louisville is 4% lower than the national average, making most things more affordable compared to other places in the country.

How much do you need to live comfortably in Louisville, KY?

To live comfortably in this city, an income of $33,440 is ideal. The living wage in the Louisville area is $16.07 per hour.

What is a good salary in Louisville, KY?

In Louisville, the highest earners make $40,241. The 75th percentile earns $34,500, the average income is $29,234, and the 25th percentile earns $29,200.

Is it worth it to move to Kentucky?

Kentucky has many cities that provide a distinctive experience by blending the small-town charm with the big-city amenities, similar to Louisville. This region is a great place to live due to its rich history, lively culture, and amiable locals.

Why are so many people moving to Kentucky?

A lot of individuals are relocating to this city owing to the abundance of job opportunities, retirement prospects, appealing lifestyle, and other compelling reasons. Each area of this state possesses its unique allure and is suitable for all types of individuals.

Downtown area view from green trees and grass in Louisville KY

Cost of Living Lousiville - The Bottom Line

Louisville is a city that thrives for various reasons, with a vibrant and diverse community that draws individuals from all over. As a resident, you can relish in the high quality of life and affordable cost of living.

Louisville is an inclusive city that offers something for everyone, regardless of their lifestyle or preferences. In fact, it is ranked as the third most affordable place to live. Whether you prefer a lively urban area or a serene residential neighborhood, Louisville has it all.

Are you searching for an ideal place to settle down with charming homes, affordable living costs, and a thriving economy? Look no further than Louisville!

Picking the appropriate neighborhood within this sprawling metropolis is crucial, as every part of town possesses its own distinct attractiveness. As the entryway to the southern region, this city boasts a plethora of natural marvels that you ought to make the most of.

If you or someone you know is interested in searching for homes for sale in Louisville, please reach out to us. We'll be able to connect you with one of our Realty Specialists to make sure it's a smooth transition. Check out moving to Louisville for more information. 

We are committed to assisting you in every stage of your home-buying journey, regardless of your location, budget, or preferences. Our goal is to help you find the ideal home that meets all of your requirements.

Feel free to contact us here tody for any questions or help. 

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Ryan Fitzgerald

Ryan Fitzgerald

Hi there! My name is Ryan Fitzgerald, and I am a REALTOR®. My goal is to help you learn more about real estate through our Real Estate Blog! Hopefully, you enjoyed the above blog post and it found a way to provide help or value to you. When you're ready to buy or sell a home of your own let us know here. Please feel free to join the conversation by dropping us a comment below.

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