NICHOLAS COUNTY, Ky. (LEX 18) — Central Kentucky homebuyers are continuing to grapple with unexpected challenges in the housing market, as private companies are limiting affordable housing supply and pricing.
Jeffrey Hornbeck, a recent homebuyer, along with his fiancée, finally found a home in the rolling hills of Nicholas County, though it wasn’t easy.
“I wouldn’t trade it for the world, but I wish I was a little more educated going into the process,” Hornbeck said.
Initially, Hornbeck searched across Frankfort, Cynthiana, Paris, and other central areas for an affordable home.
Despite his efforts, he discovered many properties, including the one he eventually bought, were not owned by individuals, but by limited liability companies (LLCs).
“We were probably halfway through the months of the process before we even realized it was coming from an LLC,” he said.
In 2023, an LLC purchased Hornbeck’s property for just over $36,000. By the time Hornbeck found it, the price had surged by $100,000. It’s a scenario mirrored across the region.
In Lexington, for instance, public property sales data indicates that while most homes on Delaware Street are valued under $100,000, half are owned by private entities rather than individuals.
David O’Neill, Fayette County property valuation administrator, recently drew attention to the issue in the county in a Facebook post.
“As home ownership becomes increasingly out of reach for many, maybe we should focus less on the lists of most expensive homes sold and instead look at the properties selling for the lowest prices and find out how the buyers are finding these opportunities,” O’Neill wrote.
According to Nadia Evangelou, senior economist with the National Association of Realtors, 18% of home sales in Lexington last year were made by investors, surpassing the national average. These investors range from landlords to property flippers.
“This is where the tension really becomes clear, especially since institutions, like cash-offering buyers, often win bidding wars, leaving families relying on traditional financing sidelined,” Evangelou explained. “The priority now should be balancing investment with inclusion, ensuring our housing market remains accessible to prospective homeowners, not just renters.”
Hornbeck, meanwhile, plans to build his own home in the future to circumvent current market dynamics. His advice to future buyers is simple: “Go with your gut.”
