LOUISVILLE, Ky. — A new neighborhood in Jeffersonville is supposed to be perfect for first time homebuyers according to the mayor.
There is a national trend of rising home costs, making the starter home a part of the past.
However, Mike Moore said the neighborhood of new homes will start at $260,000.
"As we've seen through COVID and everything else, the price of housing has gone up drastically," Moore said. "People are always asking for affordable housing and you know what, Jeffersonville is a city that's got options for everybody."
Ten homes are expected to open in the fall, and most will have three bedrooms.
Moore said a few developers told him it couldn't be done.
"I had a couple of developers come to me within the last two years wanting to do 500-square-foot houses. I'm like, 'no, Jeffersonville is not getting in the tiny home business' and they're like, 'mayor that's the only way we can build a house for under $200,000'," Moore said.
The new Spring Meadow subdivision is opening off of 10th Street in Jeffersonville near Colonial Park Drive.
According to an Indiana University study, home sales in 2023 went down nearly 16% in just one year. The number of single-family building permits also went down.
Less homes being built and mortgage rates rising have led many young adults to apartment life.
The same can be said for Kentucky; according to Zillow, the average home value has gone up about 5% and the average rental price has gone up more than $100 in a year.
However, Louisville Mayor Craig Greenberg highlighted city programs designed to help first-time homeowners.
One of them is Louisville's Revert Program, or Restoring Each Viable Economically Redlined Territory.
It's a Metro Government-funded program to help families realize the dream of homeownership while restoring neighborhoods impacted by redlining.
Since the program started 18 months ago, its helped 17 people own their own homes.
Officials said the goal of the revert program is to reach 216 Louisvillians and help them become homeowners.
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