Cost of Living in Kentucky

The cost of living in Kentucky is 8% lower than the national average
Cost of Living in Kentucky Compared to National Average
Housing (Buy and Rent) 23% lower
Utilities (Monthly) 3% higher
Food 7% lower
Healthcare 12% lower
Transportation 9% higher
Goods & Services 3% lower
Summary

The cost of living in Kentucky is 8% lower than the national average. Housing is 23% lower than the national average, while utilities are 3% higher. When it comes to basic necessities such as food and clothing, groceries are around 7% lower than in the rest of the country, while clothing costs 3% lower.

Healthcare services such as doctor check-ups and dentistry cost 12% lower in Kentucky compared to the national average. At the same time, non-necessary expenses such as entertainment and grooming services are 3% lower.

The cost of living in Kentucky varies depending on the city you live in. The priciest city in Kentucky is Louisville, where the cost of living is 5% higher compared to the state average and 4% lower than in the rest of the U.S. The cheapest major city in Kentucky is Covington, with a cost of living 5% lower below the state average and 13% lower than the national average.
City, State Compared to State Average Compared to National Average
Louisville, KY 5% higher 4% lower
Lexington, KY 2% higher 7% lower
Covington, KY 5% lower 13% lower
What is a cost of living calculator?

The cost of living calculator tells you how much money you need to maintain your current standard of living in a different city. The cost of living comparison is based on your income and the price of basic necessities such as housing, transportation or food in the two cities you selected. Use the calculator to find out what income you will need in a new city and how much more or less you’ll need to budget for basic expenses.

Where does the data come from?

Consumer goods, services and home prices are sourced from The Cost of Living Index published by the Council for Community and Economic Research (C2ER).
The data on this page is updated bi-annually and it was last published in September 2025.

Average rent data is our in-house proprietary data from Yardi Matrix, where available. For the remaining locations, C2ER rent data was used. Yardi Matrix is a business development and asset management tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily, office, industrial and self-storage sectors, a division of Yardi Systems, Inc.

Household income data is sourced from the U.S. Census Bureau’s most recent estimates.

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