Multifamily Market Overview

Bowling Green, KY

The multifamily market in Bowling Green, KY, has seen rent prices rise by eight percent throughout the third quarter of 2022, averaging six percent over the past three years. In addition to the 940 units delivered in the past three years, there are currently 300 units in the pipeline as the metro readjusts to pre-pandemic levels. Bowling Green’s job growth is the strongest in over a year, with a gain of approximately 3,300 jobs.

Vacancy

With a 5.9 percent vacancy rate, Bowling Green is in a good position for expansion and construction. Vacancies in the metro have been somewhat below the 10-year average, as of 22 Q3, but have increased slightly in the past 12 months.

Rent

Rent has grown by seven percent in the trailing 12-month period and has posted an average annual gain of six percent over the past three years. Steady rent growth is anticipated to continue to meet growing demand stemming from recent payroll increases across the metro.

Construction

Units in the pipeline remain relatively low as the metro adjusts to a post-pandemic economic climate. There are 300 units in the pipeline from Keystone Commons, making up 4.1 percent of overall inventory. The multifamily property is two stories and is anticipated to be completed by October 2022.

Sales

In the past year, 13 market-rate transactions closed in Bowling Green. The metro’s tertiary apartment market has a small footprint compared to larger markets. Annual sales volume has averaged $56.4 million over the past five years, and the 12-month high in investment volume reached $188 million over that stretch. $88.2 million worth of multifamily assets have been sold in the past year, mostly involving mid-tier apartments. The market price is close to $110,000 per unit in Q3 2022, making Bowling Green more than 50 percent below the average multifamily price in the United States.