Thinking about moving to Kentucky? The state has a strong economy and beautiful bluegrass landscapes. Also, it includes lively cities like Louisville and Lexington. Best of all, it is affordable.
In 2025, the average cost of living in Kentucky is 92.5 on the cost-of-living index. The national average is 100. So, residents spend less on day-to-day items than in most other states. Now, let’s look at housing, utilities, groceries, transportation, and more across Kentucky.
TL;DR: Average Cost of Living in Florida 2025
- Cost of Living Index: 92.5 (US average = 100)
- Rent (2-bedroom): $1,183/month
- Median Home Price: $211,465
- Utilities (Monthly): ~$470
- Annual Groceries: ~$3,055
- Annual Transportation: ~$5,477
- Healthcare Premiums (Family): ~$23,938/year
- Living Wage (Single Adult): ~$35,000/year
- Recommended Middle-Class Salary: ~$56,000/year
- Typical Daycare Cost (Annual): ~$10,800
What Does It Cost to Live in Kentucky?
Kentuckians spend about $43,794 a year on essentials. Yet, to live comfortably, you need roughly $56,000 per year.
Costs differ across regions. For example, Louisville rents are higher. Yet, job options there are better. Rural places offer cheaper housing. But, fewer jobs are available.
Utilities, groceries, transportation, and healthcare are affordable. Generally, these costs match or beat national averages. This helps keep life affordable.
Housing and Rental Market in Kentucky
Kentucky’s housing market is the main source of savings for residents, offering lower rents and home prices than many neighboring states.
A 2-bedroom apartment costs about $1,183 per month. That rent is 22% lower than the national median. Kentucky’s median home price is $211,465. This is one of the lowest prices in the region.
Here is how Kentucky stacks up against nearby states:
- Tennessee: Rents are 5.5% higher. Home prices are 52.7% higher.
- Indiana: Rent prices nearly match Kentucky’s, but homes cost 16% more.
- Missouri: Rent is slightly higher. Homes cost 21.8% more.
- Ohio: Both rent and homes cost about 13% more.
- Georgia: Rent is 16.7% higher. Homes cost 57% more.
Urban areas like Louisville, Lexington, and Northern Kentucky tend to have higher rents. However, suburbs such as Georgetown and Elizabethtown offer cheaper homes. These places are good for families and first-time home buyers.
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Utilities and Other Costs in Kentucky
Kentucky utilities average $470 per month. That is 13% lower than the US average. Stable gas and electric prices help keep bills low.
For comparison, here are utility costs in similar states:
- Tennessee: About $445/month
- Indiana: Roughly $430/month
- Missouri: Near $465/month
- Ohio: Around $470/month
- Georgia: About $450/month
Groceries cost about $3,055 per year, which is 2% below the national median. Rural areas spend less.
Transportation costs about $5,477 each year. This is just below the national average. Healthcare premiums cost around $23,938 annually for families. Indiana and Missouri have slightly cheaper healthcare, while costs in Georgia and in Kentucky’s larger cities, such as Louisville, tend to be higher.
Income and Job Market Overview
A single adult needs about $35,000 annually for basic needs. But to live comfortably, one should earn around $56,000.
How Kentucky compares to other states for needed income:
- Tennessee: About $53,000
- Indiana/Missouri: Between $52,000 and $53,000
- Ohio: Ranges from $55,000 to $65,000
- Georgia: Around $60,000 to $70,000
Louisville and Lexington offer the highest wages. Meanwhile, rural areas pay less but have fewer professional jobs.
Is It Worth It to Live in Kentucky?
Yes. Kentucky is especially cost-efficient for housing and family expenses. Daycare averages $900 per month. Preschool tuition remains below most US benchmarks.
In addition, the state offers a high quality of life. Outdoor recreation, a vibrant food culture, and a steadily growing job market enhance daily living.
Regions like Northern Kentucky and the I-65 corridor near Bowling Green are experiencing growth. Therefore, professionals and families seeking urban amenities without high costs are increasingly moving there.
Regional Insights and Relocation Tips
- Lexington: Walkable downtown, great for young professionals.
- Louisville: Urban jobs and cultural attractions, but housing is pricier.
- Western Kentucky (Owensboro, Paducah): Lower property costs and slower pace.
- Northern Kentucky: Quick access to Cincinnati, growing tech and logistics sectors.
- Bluegrass & Appalachia: Very low cost, limited white-collar jobs, rich local culture.
When relocating, compare job prospects and costs carefully. The average cost of living in Kentucky is most attractive in smaller metro areas and suburbs.
Final Thought on Kentucky’s Cost of Living
In 2025, the average cost of living in Kentucky makes the state one of the most affordable in the Midwest and Southeast. Only Indiana and Missouri come close in housing and utility savings.
Even with modest wages, Kentuckians stretch their income further. Families, remote workers, and first-time buyers benefit from both affordability and lifestyle.
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FAQs about Kentucky’s Average Cost of Living
Is Kentucky expensive to live in?
No. The average cost of living in Kentucky is significantly below the national average.
What is the average rent in Kentucky?
The average rent for a two-bedroom apartment in Kentucky is about $1,183 per month, which is roughly 22% lower than the US. median.
How much do you need to live comfortably in Kentucky?
To maintain a middle-class lifestyle in Kentucky, a salary of around $56,000 per year is typically sufficient.
Are Kentucky home prices low?
Yes. The median home price in Kentucky is about $211,465, which is far lower than most neighboring states.
Where are affordable places to live in Kentucky?
Affordable options include Lexington, Louisville, suburbs in Northern Kentucky, and many rural areas. These locations generally offer lower housing costs compared to urban centers.
