By 2029, Kentucky will need 287,120 more housing units to serve its projected population needs, according to the Kentucky Housing Supply Gap Analysis Phase II results, announced in a webinar by Kentucky Housing Corporation (KHC) and Bowen National Research (Bowen). 
   
Phase II builds upon the current housing supply gap findings released in April 2024. It surveyed the projected housing needs of each Kentucky county through 2029 factoring in issues that impact housing, including commuting, employment and economic development, income, rental supply and the age of homes and buildings, and natural disasters.   
   
In 2024, the current gaps are 206,207 overall units: 

  • 101,569 rental units; and 
  • 104,638 for-sale homes.  

In 2029, the projected gaps are 287,120 overall units:  

  • 139,162 rental units; and 
  • 147,958 for-sale units. 

The factors contributing to housing supply shortages over the next five years include renters who need more space (household growth) and those who cannot afford their homes (severely cost burdened), both of which can help shape affordable housing construction and decision-making in the next few years.