With Louisiana, many will think of New Orleans, jazz music, and beignets as merely being part of the culture of the state.
Interestingly enough, there is so much more to Louisiana that often gets forgotten. One of those things is the affordability of the housing market
Limitations of the Louisiana Housing Market
The Orange County Register interviewed economists to discuss the way that home prices have risen for the past several years with the burning question everyone has on their mind. Will the home prices continue to rise?
According to the article, the overall consensus is simply yes, that prices will rise, but are expected to slow down. The supply of homes cannot keep up with demand, resulting in potential bidding wars and higher costs.
Interest rates are also expected to increase which will also bring pause to home buying as overall expenses associated with home ownership are expected to grow.
So what does that mean about what to expect from the Louisiana housing market?
What to Expect in the Louisiana Housing Market
Buyers can expect to see housing inventory that has been on the market for an extended period. It is not unusual to see housing options have been on the market for more than three months, but that doesn’t necessarily mean the Louisiana housing market is suffering.
Contrary to that, Best Louisiana Homes reports that they expect that as the market slows down, supply will begin to get closer to reaching demand, but staying low enough to continue to drive pricing upwards.
Something else to consider is the rise of Millennials as they buy more homes in the coming year. This group of upcoming home buyers has a different set of expectations for their starter homes like upgraded countertops and other amenities that previous generations did not expect.
Along with the rise of Millennial purchasing power, there are also many options available to them when it comes to purchasing their first home, even if they have student loan debt. The increase in options available to those looking to purchase their first home translates to a boost in demand that will ultimately lead to higher prices.
Finding Affordability in Louisiana
Louisiana is more than Cajun food and Mardi Gras parades. Buyers will benefit from looking in other places around the state that offer affordable costs of living while providing somewhere to call home.
Lake Charles, LA
Lake Charles is known for being a well-rounded city that puts importance on education, getting outdoors, and appreciating art.
Newcomers will also find excitement in the midst of various casinos in the area. As a bonus, residents also do not have to have high-paying jobs to afford a lovely home.
Median home values are right around $130k, making Lake Charles a viable option for many that are searching for a new home.
Baton Rouge, LA
Baton Rouge is the state capital and has a thriving economy based on cargo transportation, petrochemicals, and healthcare.
Residents find themselves in the middle of historic plantations, a variety of cuisine, and affordable housing.
In fact, the median home price in this part of the Louisiana housing market is around $156k, a significant amount lower than the national average.
If home buyers want the attractions that go along with New Orleans but don’t want the bustle of city life, then Slidell is the place to go.
A quieter town about 30 minutes away from New Orleans, Slidell is known for being family-oriented with outdoor movie nights, community concerts, and museums.
Median home prices in Slidell are lower than Baton Rouge, too, coming in at around $152k with a higher expected paycheck to boot.
Houma is one of the most affordable places to live in Louisiana and is not to be dismissed as a viable option.
The town is smaller compared to places like Lake Charles or Baton Rouge, but the cost of living is relatively low compared to the national average. With a median home price of right around $150k combined with a low cost of healthcare, utilities, as well as food, Houma is a prime location when it comes to affordability.
Residents also value their heritage as can be seen by local plantations that are reminiscent of the old South and Creole eateries in the area.
Housing Statistics in Louisiana
Housing statistics for Louisiana are favorable for those that are looking for more affordable housing. According to Zillow, the median home value is approximately $141k with home values rising steadily.
The median listed price per square foot is $118, with currently listed homes coming in at a median of $205k.
Buyers will find more expensive homes in places like Metairie and more inexpensive homes near Shreveport.