Louisiana Housing Market

Learn more about the housing market in Louisiana

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Louisiana Housing Market Trends & Forecast

July 2, 2024

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Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.  

Louisiana Housing Market Overview 

From jazz music to Marti Gras to jambalaya, Louisiana’s rich cultural, culinary, and creative history reflects the state’s diverse heritage. 

But when it comes to the housing market, the Pelican State is relatively uncompetitive compared to other states. Prices are generally quite a bit lower than national averages in this deep South state. 

However, energy sector growth is keeping Louisiana’s economy and housing market afloat. Louisiana produces the third most natural gas in the country and has the fifth highest proved natural gas reserves, according to the U.S. Energy Information Administration (EIA). Additionally, Louisiana accounts for at least 10% of the nation’s total marketed natural gas production. The natural gas and energy industries more broadly have caused growth in Louisiana’s overall economy, which also affects the housing market. 

The biggest thing Louisiana’s housing market has going for it is its affordability. Homes are priced much less than the national average here, and owning is feasible and often smarter than renting here for many people. This leads to high demand for housing in Louisiana, lots of prospective buyers, and room for investors to flourish in the coming years. 

Regarding appreciation, Louisiana’s one-year rate is 11.2%. Appreciation has been slower in Louisiana compared to the rest of the U.S. over the past decade, and it’s unlikely to change massively anytime soon. While U.S. is forecasted to experience a 17.3% increase in home values this year, LA is not expected to exceed last year’s 11%. 

That’s not to say investing in Louisiana properties won’t lead to good returns, however, The LA real estate market favors investing strategies like wholesaling, rehabbing, flipping, and BRRRRs. It also boasts strong opportunities for short-term rental investing in high volume tourist cities like New Orleans. 

Louisiana Housing Market Trends 

To understand the Louisiana real estate market, it’s important to keep up with trends. Let’s look at some key ones in Louisiana: 

Note: These statistics are based on Redfin’s monthly housing data from April 2024. 

Median Home Price 

Louisiana’s median sale price is one of the lowest in the country according to Redfin’s monthly housing market data, at $254,200 as of April 2024. Prices are up 2.1% compared to this time last year, likely due at least in part to limited inventory. 

Number of Homes Sold in April 2024 

3,393 homes were sold in Louisiana in April of this year, down 3.0% from last year according to the Redfin dataset. This metric gives us a good picture of the current sales volume in Louisiana. However, keep in mind that this number might be inflated compared to other months since nationally speaking, sales usually peak during the spring and summer months and slow in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%. 

Median Days on Market (DOM) 

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer’s market as sales are slower and sellers have less leverage. 

The current median days on market (DOM) in Louisiana is 60 days. This means Louisiana homes stay on the market about two months on average, demonstrating that the state’s market is less competitive. 

New Supply Statistics 

On average, there were about 4.14 new residential construction permits per 1,000 people in Louisiana in 2021. This means new inventory is growing, but at a slower pace. An increase in inventory is predicted to ease demand and lower prices across the U.S. in 2024. 

Property Tax Rate 

The average property tax rate in Louisiana is 0.56%, according to Rocket Mortgage. This places Louisiana’s average property tax rate as the 5th lowest in the U.S. However, keep in mind that property taxes vary widely depending on the specific county of Louisiana and the value of the home. 

Foreclosure Rate in Q1 of 2024 

In the first quarter of 2024, 1 in every 1,919 homes experienced a foreclosure filing (according to recent data from ATTOM). Based on this data, Louisiana’s foreclosure rate is about average compared to other states. 

Hottest Local Markets in Louisiana 

If you’re interested in real estate, there are several Louisiana cities to keep your eye on this year. Some of Louisiana’s best cities for real estate according to Fortune Builders include Baton Rouge, Lafayette, Lake Charles, New Orleans, and Shreveport. Let’s take a closer look at a few of these markets: 

  1. Baton Rouge

The capital of Louisiana boasts a vibrant culture and cuisine. Homes here currently sell for a median price of $254,000, about the same as the state-wide median. This makes housing affordable in the capital city even as residents enjoy the benefits of a warm, subtropical climate and proximity to the Gulf Coast. 

  1. Greater New Orleans

New Orleans saw more than 17 million visitors in 2022 alone. Those tourists spent over nine billion dollars in the city. As one of the most popular tourist destinations in the U.S., New Orleans is an ideal place for short-term rentals and other types of real estate investments. High demand keeps the New Orleans metro area a stable market with diverse options, a low cost of living, and tax benefits.

Metairie, a suburb of New Orleans, is often cited as a great area for real estate investing. This upscale community features historic homes, shops, and cultural celebrations. Homes here sell for a median price of $333,500. 

  1. Shreveport

This northwestern city is known for being the cultural and geographical hub of the Ark-La-Tex region. The median sale price in Shreveport is $200,000, up almost 10% since this time last year. However, prices remain very affordable in this area, opening opportunities for homeowners and investors. 

Economic Factors Impacting the Louisiana Housing Market 

A holistic view of the Louisiana housing market requires a basic understanding of the main economic drivers affecting the market. Let’s look at a few critical ones below: 

Mortgage Rates 

High mortgage rates are a continuing challenge for would-be homeowners in the U.S. Louisiana’s average rates for 30-year mortgages in June of 2024 are currently 7.25%, up to par with the national average. Higher interest rates deter borrowing and discourage those who already own homes from putting their homes on the market. Many homeowners report feeling “locked in” to their current homes, as it is unlikely they will secure a mortgage rate as low as their current one on their next property. Prospective buyers in Louisiana should monitor mortgage rates in the coming months for a better understanding of how they impact the housing market. 

Inflation and Cost of Living 

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Louisiana. This means fewer people can truly afford to limit housing costs to less than 30% of their monthly income. 

Population Changes and Demographics 

Population, migration, employment, and other demographic factors can each influence the housing market. Increased migration can lead to inflated prices and rents as demand increases, while slowing population growth can lead to more affordability for residents. Louisiana has recently seen population decline due to out migration, which could be due to lack of education opportunities, employment prospects, or other economic factors. 

Income levels can also influence housing. The median household income in Louisiana is $57,852. An influx of high-paying jobs or sectors can increase home sales volume and even inflate pricing in key markets. 

Other Factors for Louisiana: Climate and Hurricane Damage 

Climate change and environmental hazard risks are impacting property values and affordability across the U.S. This is especially the case in states like Louisiana as well as California and Florida, which are all experiencing an insurance crisis due to an increased risk of floods, earthquakes, storm surges, and other natural disasters. 

In many southern coastal areas, Louisiana residents struggle to afford homes due to high insurance premiums caused by high flood risk. In fact, 42% of Louisiana is designated as a flood risk zone. Much of New Orleans already rests below sea level and is losing land as quickly as 25 square miles per year, increasing the odds of property damage and complete loss over time. Millions of Louisianans will soon have to contend with increasing insurance costs, loss of viable land, and the question of how and where to find safe areas to invest in a home in the state. 

Louisiana Housing Market Forecast 

Like the rest of the U.S., high interest rates and inflation in Louisiana have boosted home prices and decreased sales, pricing more prospective buyers out of the market. Louisiana buyers are waiting for rate cuts this year to make a move on properties.  

However, many analysts are optimistic about Louisiana’s housing market for the remainder of the year. With the promise of better interest rates on the horizon, homeowners are interested in the area’s many affordable homes and homeowners are hopeful about continued appreciation. Stable prices, new construction, and a booming energy-based economy contribute to a promising outlook for Louisiana this year. 

Likelihood of Louisiana Housing Market Crash  

A housing market crash in Louisiana is unlikely. Due to the market’s stability and its source of economic strength via energy and manufacturing industries, in addition to the state’s steady tourism, it is unlikely that this state will experience a housing market crash this year. 

Forecast for The U.S. Housing Market 

Now that we’ve looked at Louisiana’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years? 

The United States’s current median existing-home sale price is around $384,500 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 2.9. 

We’re currently in a seller’s market with buyers looking at continued rising house prices. The same trend can be seen with renters. Housing continues to appreciate, in general.  

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In five years, however, he predicts a more balanced market, in which neither party has a built-in advantage. Thus, the market will shift to a case-by-case basis to determine what kinds of deals people can get. 

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth. 

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Higher mortgage rates and inflation (affecting price of materials) were the main causes.  

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.  

Louisiana Rental Market 

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.  

Rents were more unaffordable than ever in 2021 and 2022. In 2022, 22.4 million households paying rent said it was unaffordable, which is the highest that figure has ever been, according to a January report from the Joint Center for Housing Studies at Harvard University. The study found that half of all renters in the United States spent over 30% of their income on rent and utilities.  

The markets cooled in 2023, though, due to new units and decelerating demand. But a serious problem persists: Rent increases are still outpacing income gains.  

Moreover, high interest rates are keeping borrowing and transaction activity down. Over half the banks surveyed by the Federal Reserve reported that demand for multifamily loans decreased year-over-year. 

The pandemic caused a housing disparity that isn’t going away anytime soon. Unaffordable housing is a serious issue across America. Whether high rents or low income is the main cause doesn’t change the fact that this problem is widespread.  

This short summary leads directly into Louisiana’s current rental market, based on data from Zillow below. 

Louisiana Rental Market Key Trends 

  • Median rent: $1,500  
  • Month-over-month rent change: $0 
  • Year-over-year rent change: $0 
  • Available rentals: 5,994 


The Louisiana housing market in 2024 is marked by a blend of stability and growth, making it crucial for potential buyers and sellers to stay informed about market trends. Whether you’re looking to purchase a home soon or sell your property in Louisiana, the macro- and micro- economic trends outlined above will affect your decision-making. Market dynamics like changes in home prices, inventory levels, and interest rates will continue to be critical for stakeholders in Louisiana real estate.

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