Market Intelligence · KY / Lexington

Lexington, KY 40517 Housing Market

The typical home value in Lexington, KY 40517 is $254,176, up 3.3% over the past year. The median list price stands at $285,000, with homes spending a median 38 days on market as of September 2026.

Updated September 2026Median value$254K

The median home value in Lexington, KY 40517 is $254K as of September 2026, up 3.3% year over year, according to Zillow ZHVI. For a read on your own home, start with a free consultation: a licensed local pro will walk you through your numbers and your options, with no obligation.

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Typical 40517 range

$234K to $275K

This is an automated estimate, not an appraisal. Actual value is determined by current market conditions and professional evaluation. It is provided for informational purposes only and is not an offer to buy or a promise of value.

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12-month value trend

+3.3% over 12 months

Sep 2025$246K

Low $246KHigh $254K

Sep 2026$254K

The numbers

What is the 40517 housing market like?

As of September 2026

Typical home value

$254K

3.3%YoY

Median list price

$285K

1.7%MoM

Days on market

11.8%MoM

Homes for sale

7.5%MoM

Price cuts

29.2%

19.5%MoM

New listings

5.0%MoM

Sources · Zillow ZHVI (September 2026) / Realtor.com (September 2026) / FRED (October 2026)

The outlook

40517 housing market forecast 2027

+2.0%

Zillow forecast, 12 months to September 2027

Zillow forecasts typical home values in 40517 to rise 2.0% by September 2027.

Over the 12 months through September 2026, typical home values in 40517 rose 3.3%, per the Zillow Home Value Index.

Will home prices drop in 40517?

Zillow's forecast does not call for a drop: it expects typical home values in 40517 to rise 2.0% by September 2027, after a 3.3% rise over the past 12 months. Forecasts are not guarantees: mortgage rates, inventory, and the wider economy can move values either way.

Forecast: Zillow Home Value Forecast, published October 2026. A forecast, not a guarantee.

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The comparison

How do 40517 home prices compare?

40517$254,176
Lexington$356,800
Kentucky$168,346
United States$285,347

Median Zillow home value (ZHVI), as of September 2026. Comparison levels are medians across every ZIP code with Zillow data (Lexington: 14 ZIPs; Kentucky: 598 ZIPs; United States: 26,262 ZIPs).

Context

The ZIP code had 57 homes for sale in September 2026, with 38 new listings added to the market. Buyer interest remains steady given the inventory level and pace of sales. However, 29.2% of listings have seen a price cut, suggesting some sellers are adjusting expectations as the market stabilizes. While appreciation has continued, the combination of slower movement and price reductions signals that sellers should price carefully and be realistic about timing.

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Down payment20% · $50,835

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Common questions

What people ask us.

What is the typical home value in 40517?

The typical home value is $254,176 as of September 2026, up 3.3% over the past year.

How long do homes stay on the market in 40517?

The median days on market is 38 as of September 2026.

What share of homes have had price cuts?

29.2% of listings have seen a price cut as of September 2026.

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Nearby ZIP markets.

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