Cost of Living in Lexington: What You Need to Know
Welcome to Lexington, Kentucky, where the horses run fast, the bourbon flows smooth, and the cost of living won’t leave you crying into your mint julep. Known as the “Horse Capital of the World,” this city offers an irresistible mix of southern charm, urban amenities, and affordability. Let’s saddle up and explore what it costs to live in this vibrant Bluegrass paradise—and have a little fun while we’re at it.
Housing Costs
Finding a place to call home in Lexington is as easy as finding sweet tea in the South. The median home price is around $250,000, which is lower than the national average. Renters, rejoice! A one-bedroom apartment in the city center averages $950, and suburban spots can go for around $800. That’s less than what some cities charge for a parking spot—looking at you, New York.
Neighborhoods like Chevy Chase and Beaumont are perfect for families, offering beautiful homes and access to top schools. For budget-friendly options, check out Masterson Station and Cardinal Valley. They’re great places to save a buck while still living your best Bluegrass life.
Utilities and Energy Costs
Utilities in Lexington are pretty moderate. Expect to pay about $150-$200 per month for your basic services. That leaves you with enough extra cash to finally splurge on that fancy bourbon barrel coffee table you’ve been eyeing.
Internet will add $50-$75 to your monthly expenses. Consider it your ticket to streaming horse races and endless Kentucky cooking tutorials.
Transportation
Lexington is a car-lover’s city, but if you prefer to let someone else do the driving, Lextran has you covered. A monthly bus pass costs just $30. For drivers, parking downtown is affordable, with monthly passes ranging from $25-$70. And guess what? Your commute here is likely shorter than the time it takes a Thoroughbred to run the Kentucky Derby.
Food and Dining
Lexington’s food scene is a culinary derby, and everyone’s a winner. Groceries for a family of four average $800-$1,000per month. For locally sourced produce, check out Good Foods Co-op, a staple in Lexington's local food scene. And don’t forget to wave at your friendly farmer—it’s the Lexington way.
When dining out, Lexington delivers deliciousness at every turn. Try Bella Cafe and Grille for a romantic night out, or Carson’s Food & Drink for elevated pub fare. If you’re feeling fancy, Omakase serves sushi that’s worth every penny. Even For a casual and comforting experience, head to Minton's for Southern-inspired dishes, or try Epping's on Eastsidefor a modern twist on farm-to-table cuisine. If you're in the mood for steak and bourbon, Cole's on Main is an unforgettable choice.
Healthcare
Healthcare in Lexington is top-notch, with prices that won’t have you breaking into your kid’s college fund. A typical doctor’s visit costs around $100-$150, and dental checkups average $75-$100. Institutions like Baptist Health Lexingtonand the University of Kentucky’s healthcare system ensure you’ll be in good hands—even if you need a hand after a particularly ambitious bourbon-tasting session.
Education
Lexington takes its education seriously, but don’t worry, there’s still plenty of recess. The Fayette County Public Schoolsdistrict is highly rated, with top schools like Paul Laurence Dunbar High School and Henry Clay High School. Private schools such as Sayre School and The Lexington School cater to families looking for specialized education—with tuition costs ranging from $16,000-$24,000 at Sayre School and $14,000-$20,000 at The Lexington School.
University of Kentucky Sports
In Lexington, sports are more than just a pastime—they’re a way of life, and nothing captures that better than the University of Kentucky’s legendary athletics. UK basketball is practically a religion here, with Rupp Arena transforming into a sea of blue and white on game days. The energy is electric, the fans are passionate, and the pride is palpable. Whether you're cheering from the stands or joining a watch party, it's an experience that bonds the entire city.
Football at Kroger Field also draws a spirited crowd, especially during SEC matchups. Tailgating is an art form in Lexington, complete with barbecue, bourbon, and plenty of Big Blue Nation spirit. Game days are a city-wide celebration, bringing together students, alumni, and locals alike for a shared love of Wildcats sports.
Recreation and Entertainment
From horse racing to hiking, Lexington knows how to entertain. Keeneland, one of the top things to do in Lexingtonoffers live racing that’s more thrilling than a mint julep in July. The Spring Meet (April 4-26, 2025) and Fall Meet (October 3-25, 2025) are calendar highlights.
Art lovers will enjoy the Lexington Art League, while nature enthusiasts can explore Raven Run Nature Sanctuary. And if you need a break from all that excitement, the soon-to-open Town Branch Park, a highlight of Lexington's revitalization efforts will be a serene spot to relax and reflect on how great life in Lexington really is.
Shopping
Lexington’s shopping scene is a treasure trove of unique finds and local gems. Topping the list is Worlds Apart, the best gift shop in Lexington, where you can find everything from artisanal candles to one-of-a-kind home decor. Whether you're hunting for the perfect present or treating yourself, Worlds Apart guarantees a delightful experience. For fashionistas, boutique stores in Chevy Chase and The Summit at Fritz Farm offers stylish options that rival big-city shopping destinations. Explore popular shops like Anthropologie, Pottery Barn, and Lush Cosmetics, alongside local favorites such as Honeywood for dining and trendy boutiques like Marine Layer, as well as nationally loved brands like Lululemon and Vineyard Vines.
Taxes
Kentucky’s flat income tax rate is 5%, and property taxes average $1,240 per $100,000 of assessed value. That’s a pretty sweet deal—more money for bourbon and biscuits.
Lexington, Kentucky, is a city that’s as friendly as it is affordable. Whether you’re here to immerse yourself in the thrill of horse racing, savor the culinary delights, or shop at unique local spots like Worlds Apart, you’ll find a lifestyle that’s second to none. So grab your cowboy boots, mark your calendar for a Keeneland race, and come see why Lexington is the best-kept secret in the Bluegrass State!