LEXINGTON, Ky. (LEX18) — Lexington city leaders held a groundbreaking on Wednesday morning for a new affordable housing unit being built in an emerging Lexington neighborhood.
High mortgage rates and increasing rents have made it almost impossible for the average person to live comfortably in Lexington.
According to SmartAsset.com, a single adult to live comfortably in Kentucky needs to have an average income of $83,000, and an income for a family of four needs to be $192,000.
However, with three new apartment buildings set to be available by December 2026, that could soon change. The buildings will be located on Delaware Avenue near the intersection of Winchester and Liberty roads.
"After living here for 13 years, I wanted to do something that was going to give back and create an impact here in the city. And I felt like what I was doing before wasn't doing that," said Will Hanrahan, who is the real estate developer for The Railyard.
Hanrahan says the building will mix affordable housing with market-rate apartments. It will be 32 units as a whole, with 12 of those units for income-restricted residents. This means the resident will need to make 80% or less of the Area Median Income (AMI), which is $62,908. Those 12 units will be capped for 20 years.
As of now, Lexington needs a total of 22,500 more housing units to meet the current demand, and 17,005 of those should be affordable housing.
"Taking an underutilized lot of land and creating mixed-use housing and commercial space for the neighborhood," said Liz Sheehan, who is the District 5 council member. "I want anybody who is interested in developing housing, particularly affordable housing, in our community to look at this project and know it can be done."
Since 2024, most residents have had to pay more than 30% of their income on housing. The hope is that this will reduce that.
"I think what it really comes down to is the community here in Lexington. Despite not being from here, but having lived here for 13 years, I quickly got the sense that this was the place I wanted to do it. The people I've met, the friends I've made, the relationships I've built have kept me here," Hanrahan explains.
The space will also offer community through coffee shops and gathering places in the area.
The goal is to have the complex completed by December 2026.
