The land market in Kentucky's Bluegrass region is undergoing a dynamic transformation. Stephen J B Davis, Land Specialist with Christie's International Real Estate Bluegrass, has compiled the Five-Year Bluegrass Land Report Snapshot. This vital resource details key trends, projections, and insights from five years of raw land sales across 16 Central Kentucky counties. We have compiled five key takeaways from this report for landowners, buyers, and investors.
1. Widespread Appreciation Across All Segments
Land as an asset presents enormous promise and future value, with prices appreciating across every market segment over the past five years. Central Kentucky is currently in a growth mode, attracting new companies and jobs, which increases overall demand for property.
2. The 5-to-20-acre Parcel is King
The most dominant and competitive segment of the regional market is the 5 to 20-acre range, which represented over 50% of all land sales in the previous five years. The demand in this category is immense, leading to a remarkable 69% appreciation in price per acre. This growth is largely influenced by buyers seeking a more rural, quieter, and small-town lifestyle.
3. Premium Acreage Leads in Price Growth
While volatile, the 50+ acre premium market segment had the largest appreciation of all, with a massive 120% growth in price per acre over the five-year period. This appreciation is often driven by wealthy investors, recreational buyers, and the volatility introduced by development pressure for large subdivisions.
4. This Appreciation is Driven by Three Key Forces
The overall price growth is being fueled by a confluence of factors, including:
- Development pressure as more people move to the area and require new housing.
- Agricultural cycles, such as the market shifts from tobacco to horse and cattle operations.
- A post-COVID cultural shift toward remote work and the desire for a deeper connection to nature, self-sufficiency, and rural living.
5. Investment Opportunities Vary by County
Based on your specific investment goals, the report offers recommendations on where to focus your efforts. For example, Harrison, Mercer, and Anderson counties reflected stable volume and moderate appreciation that may be appealing for a conservative investment. Scott, Bourbon, and Jessamine counties offer the most appreciation but higher volatility, potentially the best choice for a “growth investment.”
Take the Next Step
This report's information is a starting point that buyers, sellers, and investors can use to inform their personal decision-making. For additional context into the report and current dynamics in the Central Kentucky market, connect with the author, Land Specialist and residential Realtor® Stephen J B Davis. Stephen is fueled by a passion for land and bringing his core values of collaboration, knowledge, and process to his clients.