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If you're deciding whether to buy or rent a home in in 2026, you're not alone. What used to be a simple answer has become more difficult as the economy continues to drift from historical norms.

Previously, it was that buying was the more affordable choice, with long-term benefits generally outweighing the initial costs. But that assumption has shifted. After the pandemic threw housing markets , prices ballooned and climbed, straining affordability nationwide. Now, the typical buyer needs to earn than the typical renter to afford a median-priced home in many cities, leading the homeowner population to .

So what does buying vs. renting look like in Louisville right now? To find out, looked at the income required to afford a typical home over a typical apartment—called the "income premium." For example, an income premium of 10% means a household needs to earn 10% more to buy than to rent, while a premium of -10% means renting is cheaper than buying.

Note: All data is a monthly average for the month of December 2025. Rental data comes from a partnership with Zillow; median income data comes from the U.S. Census.

Buying vs. renting: Louisville

• Income premium to afford typical home over typical apartment: 33.5%
• Income needed to buy: $72,089
• Income needed to rent: $53,982
• Median sale price: $275,950
• Median rent price: $1,350
• Median household income: $80,509

Buying vs. renting: National

• Income premium to afford typical home over typical apartment: 46.3%
• Income needed to buy: $111,252
• Income needed to rent: $76,020
• Median sale price: $426,747
• Median rent price: $1,901
• Median household income: $86,185