Supply continues to lag demand as new apartment complexes pop up around Louisville

LOUISVILLE, Ky. (WDRB) -- The supply of apartments in Louisville can't keep up with the increasing demand.

The Building Industry Association of Greater Louisville said builders are telling them as soon as they open their first building to tenants, they automatically become 90% full. And that high demand leads to an even higher price tag.

Danny Sharpe is one of South Louisville's newest apartment tenants. He said it was a big decision, because, nowadays, the city has so many developments in progress.

"I toured and went to a lot of different places before, and I said 'OK, what fits my needs?'" Sharpe said Thursday. "... You pay for the landscaping and you pay for it to ... basically 'You see what you're paying for.'"

Juva Barber with the Building Industry Association of Greater Louisville said even though apartments are going up across the county, the demand continues to outpace the incoming supply.

"People have this perception that we're seeing so many apartments," Barber said. "But you have to remember that, for many, many years in this county, we didn't see really any new apartment development at all," Barber, said. "If they're are not enough units on the market, the prices are going to go up. It's basic supply and demand."

Right now, the average rent in Louisville is about $1,100 per month.

"We need more supply in this community to even out rents, to even out sale prices of homes so everyone can find somewhere to have a roof over their head," Barber said.

Until then, the new builds will keep popping in south Louisville, west Louisville, east Louisville and everywhere in between.

"Housing should be affordable for people, because what's the point of building a lot of companies and luxury apartments if people can't afford them?" Sharpe said.

Barber also said one of the reasons why you're seeing more construction sites throughout Louisville is because developers know they can do well because of all the demand. That's despite interest rates being much higher than when they first filed their original plans.

She said it can take two to seven years to get a project approved and finished.

"It would be lovely for us to streamline our process, to see these developments move through the process more quickly, to make sure that we have enough housing here for the people who live and work here," Barber said.

Louisville Housing Coverage:

Supply continues to lag demand as new apartment complexes pop up around Louisville