Home to 533,366 residents across 6 counties, the Lexington MSA is Kentucky’s second-largest metro and a thriving center for education, equine industries, advanced manufacturing, and healthcare. Strategically located in Central Kentucky along major interstate corridors, Lexington offers a pro-business climate, exceptional quality of life, and convenient access to two-thirds of the U.S. population within a day’s drive.

Lexington’s economy is driven by key sectors including higher education, healthcare, equine/agriculture, and advanced manufacturing. The region is home to the University of Kentucky—the state’s flagship university—with 36,161 students and 35,000 employees, including UK HealthCare, a top-tier academic medical center. Other major healthcare providers include Baptist Health Lexington and CHI Saint Joseph Health, supporting a combined total of more than 1,000 licensed beds and thousands of jobs.

The region is a national leader in equine-related industries, with world-renowned facilities like Keeneland Race Course and the Kentucky Horse Park. In addition, the metro supports a robust manufacturing base with employers such as Toyota Motor Manufacturing Kentucky (TMMK) in nearby Georgetown, the largest Toyota plant in the world, employing 10,000.

Retail hubs such as Fayette Mall, The Summit at Fritz Farm, and Hamburg Pavilion serve the region’s growing and diverse population.

The Lexington MSA includes approximately 255 multifamily properties with more than 42,000 units.

 

Lexington Economy

The Lexington–Fayette County MSA features a diverse and steadily expanding economy anchored by higher education, healthcare, advanced manufacturing, equine industries, and professional services. The metro’s Gross Metropolitan Product is roughly $39 billion, supported by a strategic central location, highly educated workforce, and a strong employer base. Since March 2020, the Lexington metro has added nearly 20,000 jobs, reflecting a labor force growth of 5.5%.

Major Industries

The Lexington MSA is economically well-balanced, with significant contributions from the following sectors:

Education & Research

Lexington is home to the University of Kentucky, a Carnegie R1 research institution and the region’s largest employer.

  • UK employs 35,000 people across its academic, medical, and research divisions

  • Over 36,000 students enrolled, supporting a highly skilled local talent pipeline

Healthcare & Life Sciences

Lexington serves as a key healthcare center for Central and Eastern Kentucky.

  • Major providers include UK HealthCare, Baptist Health Lexington, and CHI Saint Joseph Health

  • Healthcare sector employs more than 40,000 people in the region

  • Combined, the major health systems manage nearly 2,000 licensed hospital beds

Equine, Agriculture & Tourism

Known as the “Horse Capital of the World,” Lexington’s equine industry is globally renowned.

  • Home to Keeneland Race Course, the Kentucky Horse Park, and dozens of major breeding farms

  • The equine/agriculture sector generates over $3 billion in regional economic impact

  • Equine-related tourism and events attract hundreds of thousands of visitors annually

Manufacturing & Advanced Industry

Lexington has a strong manufacturing base with a focus on automotive, aerospace, and advanced materials.

  • Toyota Motor Manufacturing Kentucky (TMMK) in nearby Georgetown employs 10,000

  • Other major employers include Lexmark, Lockheed Martin, and Hitachi Automotive Systems

  • Advanced manufacturing accounts for over 13% of regional employment

Professional & Business Services

Lexington’s highly educated population supports strong growth in professional services, finance, and tech-enabled sectors.

  • Over 50,000 employed in business services, finance, insurance, and IT

  • A growing cluster of fintech, SaaS, and consulting firms is emerging

  • Continued investment in downtown revitalization and innovation hubs like the UK Innovation & Entrepreneur Center is attracting new employers and startups

Population Analysis

 

Lexington MSA Population

The Lexington MSA had a 2024 population of 533,366, led by Fayette County (Lexington – 329,437). While the MSA as a whole grew 3.08% from 2020-24, the fastest-growing counties in the MSA during that same time period were:

  • Scott – 7.24%
  • Jessamine – 6.56%

Demographics

Total Population (MSA)
533,366
Unemployment Rate (May 2025)
4.1%
Population Growth (2020-24)
3.08%

Multifamily Highlights

Lexington Multifamily Analysis

 

The Lexington MSA has 255 apartments of over 50+ units, for a total of 42,762 units. Vacancy in Lexington’s multifamily sector is down from 7.5% in 2024 to a projected 6.9% by the end of 2025 (CoStar). A minimal development pipeline is anticipated to compress vacancies even further to a projected 6.6% by the end of 2029 (CoStar). The Average Rent in Lexington is $1,240 with a 12-Month rent growth of 3.3% (CoStar). Based on an analysis of multifamily properties in Lexington, Average Expenses are $5,069 per unit (TKC’s Expense Averager Tool).

 

Major Employers

  1. University of Kentucky

    26,000 Jobs / 36,161 Enrollment  | Learn More
  2. UK HealthCare

    9,000 Jobs / 910 Beds  | Learn More
  3. Toyota Kentucky

    10,000 Jobs  | Learn More
  4. Baptist Health

    3,189 Jobs / 434 Beds  | Learn More
  5. Amazon

    3,000 Jobs  | Learn More
  6. Veterans Medical Center

    2,384 Jobs / 190 Beds  | Learn More
  7. CHI Saint Joseph Health

    2,029 Jobs / 650 Beds  | Learn More
  8. Eastern Kentucky University

    1,800 Jobs / 14,565 Enrollment  | Learn More
  9. Hyster-Yale Group

    1,661 Jobs  | Learn More
  10. Lexington Clinic

    1,490 Jobs  | Learn More
  11. Hitachi Automotive Systems

    1,325 Jobs  | Learn More
  12. Lockheed Martin

    1,276 Jobs  | Learn More

Other Demand Drivers

  1. Fayette Mall

    1,158,536 SF & 150 stores; Dillard's, Macy's, JCPenney, Dick's  | Learn More
  2. Hamburg Pavilion

    980,000 SF & 75 stores; Best Buy, Big Lots, Dick's, Kohl's, Michaels, Old Navy, Ross, Regal, Target  | Learn More
  3. Blue Grass Airport

    1,571,805 passengers in 2024; 4 major airlines  | Learn More
  4. Keeneland Race Course

    Home to several famous horse races  | Learn More
  5. Kentucky Horse Park

    1,200 acres; founded in 1978  | Learn More
  6. Bourbon Distilleries

    15 distilleries within 45 minutes of Lexington  | Learn More

Sources & Comments

1. The Lexington-Fayette Metropolitan Statistical Area consists of 6 counties: (1) Bourbon (2) Clark (3) Fayette (4) Jessamine (5) Scott (6) Woodford

2. Primary Sources: (1) https://fred.stlouisfed.org/ (2) CoStar (3) MSCI Real Capital Analytics

3. Sales Comps are from July 2024-July 2025

4. This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy