If you are a Korean family considering a move to Lexington, Kentucky, you might be wondering whether to buy a home or start with renting.

To get straight to the point, I see Lexington as a neutral market, but slightly leaning towards buying a home.

These days, if you calculate the average rent at about $1,400 per month and the median home price at around $285,000, it's quite interesting.

Dividing the home price of $285,000 by the annual rent of $16,800 gives a Price-to-Rent Ratio of about 17.

Typically, a ratio below 15 suggests buying is favorable, while above 21 indicates renting is better, so 17 falls right in the middle.

However, we need to consider the actual money coming out of your pocket.

If you put 20% down on a $285,000 home, you'll need an initial $57,000.

Borrowing the remaining $228,000 at a fixed rate of 6.75% for 30 years would result in a principal and interest payment of about $1,479 per month.

Adding property taxes and homeowners insurance, your total monthly housing cost would be approximately $1,766. Compared to the rent of $1,400, that's an extra $366 each month.

Buying a home doesn't end there. If the air conditioning breaks, you have to fix it, and there will be various expenses for the roof, plumbing, and other issues.

Additionally, you have to consider the initial $57,000 you invested.

If you assume you could have invested that money at an average annual return of 7%, you would incur an opportunity cost of $3,990 per year, or about $333 per month.

So, if you plan to live here for just 2-3 years before moving to another city, I wonder if it's really necessary to buy a home right away. There are costs involved in buying and selling a home as well.

On the other hand, if you plan to stay for 5 or 10 years, the situation changes. Lexington has the University of Kentucky and many healthcare-related jobs, plus it's known for the horse industry, so there's a steady influx and outflow of people. If you have a stable job for the long term, buying a home is definitely worth considering.

I was also curious about how many Koreans live here.

The population of Lexington is about 330,000, with an estimated 0.4% being of Korean descent.

That's roughly around 1,300 people. While it's not enough to form a Korean town like in LA or Atlanta, it's not a city where you'd have trouble finding Koreans either.

In fact, there are Korean associations and churches, and there is demand for Korean food and products. In 2026, the city of Lexington will officially declare Korean American Day for the first time, indicating that the presence of the Korean community is gradually growing.

Interestingly, Lexington has a sister city relationship with Jeju, which means that even though the community is small, the atmosphere is different from other small American cities that have no Korean community at all.

If I were moving to Lexington for a job, I would start with renting for 1-2 years. I need to see which neighborhoods are comfortable and whether I'll continue at my job.

However, if I have a stable job at the University of Kentucky or a hospital and am considering my children's schooling, I would likely lean towards buying a home if I plan to stay for more than 5 years.

Ultimately, Lexington is not a city where home prices are so high that you have to give up on buying, nor is it a place where rent is so expensive that you must buy a home immediately.

So, the calculations are actually quite simple. If you're staying temporarily, rent; if you're planning to settle down, buy. This seems to be the most realistic standard in Lexington.