In the late 70’s, there was a huge demand for apartment complexes in Lexington. At that same time, much of the land available for development was in the 40517 zip code. That is why you see so many of them on Tates Creek Road outside Man O War and over towards Alumni Drive.
In the 80’s, interest rates went through the roof. Our best example of what interest rates do to new construction can be found in Belleau Woods. Every wondered why those larger houses you see from Wilson-Downing are nothing like the rest of the neighborhood? That is because Belleau Woods was originally going to be an upscale neighborhood. Those few houses you see from Wilson-Downing were built before the interest rates went sky high. Once the rates rose, nobody could afford them. Smaller homes became more popular to build.
A similar thing happen in The Home Place when the housing bubble burst. In about 2008-2010, it was much safer to buy a smaller house, so that is what was build. Now that the market is better, you are seeing much larger and fancier houses going up out there.
Summerfield? That was originally going to be large luxury homes like Tuscany or West Wynd. One of the smartest moves I’ve seen since I’ve been a realtor was turning that into medium sized upscale homes in the $250-300k range. That was just what the market wanted. Perfect timing.
So, here we are today. The Dow is high, gas is cheap, jobs are being created, and Americans are no longer afraid to spend. What is happening with new construction in Lexington? A lot of luxury homes. Tuscany is selling well after spending most of the past 6-8 years having been forgotten. Jimmy Nash took a neighborhood full of large lots that nobody wanted and turned it into the hottest place to drop $750k or more on a house.
All of which brings me to where I am going with this. The market is good, the economy is good. The available land is out by Winchester Road. That area is quickly becoming the high end spot to live, much like Tates Creek was in the 80’s and Harrodsburg Road was in the 90’s.
Why? Because builders will build whatever the market demands on whatever land is available.