LEXINGTON, Ky. — As home prices keep climbing and mortgage rates remain high, buyers in Kentucky are facing increasing challenges, prompting discussions about potential policy solutions.
Last week, former President Donald Trump proposed two measures aimed at lowering the cost of buying a home. His plan would ban large investors from purchasing single-family homes and have the federal government buy $200 billion in mortgage bonds to help reduce interest rates, according to CBS News.
Carla Blanton, a board member with Lexington for Everyone, an organization advocating for affordable housing, said the combination of rising home prices and limited available land is creating a major hurdle for buyers.
“Housing prices continue to go up and up,” Blanton said. “For every $1,000 a home price goes up, there are 286 people who no longer can afford that home.”
Blanton highlighted a looming shortage, projecting that Lexington could face a deficit of 30,000 affordable housing units by 2030. She said delays in identifying suitable land for development are a significant barrier.
“We’re going to ask the city to identify vacant or underutilized lots it owns and figure out how to make that land affordable for developers,” Blanton said.
While she said the federal proposals could help lower housing costs, Blanton emphasized that solutions require collaboration across all levels of government.
“Anything that’s going to help chip away at those costs is going to be something that would put people in homes faster,” she said.
“Local government plays a key role through regulations it imposes or removes. Everybody needs to work together.”
State lawmakers are also reviewing housing initiatives during this legislative session, aiming to address affordability and accessibility across Kentucky.
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