New Orleans Real Estate Market Trends

by Reve | Realtors

Colorful homes in the French Quarter of New Orleans.

New Orleans real estate is beautiful and popular, and the New Orleans housing market is hot right now. Because of all that New Orleans has to offer -from its beautiful architecture to its thriving arts and culture, to its history- a lot of people want to live in this gorgeous city.

We’ve identified many individual neighborhoods and regions within New Orleans that would make ideal places for young families, established families, newlyweds, singles, and retirees. These neighborhoods include such charming places as Bayou St. John, The Garden District, Mid-City, Metairie, and many many more. But if we’re looking at the larger trends that are affecting all of New Orleans generally, there are some numbers we can consider, too.

New Orleans Home Values

Home values in New Orleans are very strong right now, with the median listing being approximately $400,000. This price is up 8.7% compared to June of 2021, indicating that demand is high and that homes will (at least for now) continue to bring in a very good price.

The market across the country has been very strong for the past several years due, in large part, to the low interest rates on mortgages. This is changing now, so we expect to see some slowdown, but demand remains very high.

There is currently a shortage of homes compared to the number of buyers, making this very much a seller’s market. Generally, New Orleans hasn’t been as expensive or volatile as some of the other cities in the United States. But homes for sale remain in all neighborhoods, and the home prices in New Orleans remain good.

How Competitive is the New Orleans, LA Housing Market?

The market in New Orleans is considered competitive, but perhaps not as fast-paced as other parts of the country. Homes are selling almost exactly for their list price (about 2% below list price on average) and remain on the market for an average of 14 days.

According to Redfin, 27.5% of New Orleans homes were sold above list price in the last year, while 39.8% sold below list price.

The sale-to-list price rate of 98.5% has remained very steady in New Orleans for the last five years, which would indicate that New Orleans is a very safe market for housing. We are not seeing the volatility in New Orleans real estate news that we see in other cities over the course of five years.

This stability is very important as it signifies that, in the event of a real estate bubble in other parts of the country where prices have skyrocketed over the past two to three years, there doesn’t appear to be the possibility of a bubble in New Orleans.

New Orleans Climate and Its Effect on Home Buyers

The primary weather concern in New Orleans is flooding. But while 23% of homes in New Orleans are required to have flood insurance, the likelihood of flooding is considered very low (0.2% likelihood per year for the 50,000 homes in the flood areas.)

Storm risk in New Orleans is high, as is usual for this city on the coast of the Gulf of Mexico, but 2021’s average cost of flooding damage was approximately $1200 for single family homes.

Lifestyle in New Orleans

The lifestyle in New Orleans is one of the main draws for newcomers to the city (and one of the reasons why longtime residents are in no hurry to leave). New Orleans is considered to be a very walkable city, with the French Quarter and Marigny rating very high for walkable neighborhoods in New Orleans, followed by the Central Business District, Lower Garden District, and East Riverdale.

On the other hand, if you need to commute, the most transit-friendly neighborhoods in New Orleans are Iberville, Central Business District, the French Quarter, Tulane-Gravier, and Treme-Lafitte.

And, if you’re looking to get out and ride, the most bikeable neighborhoods are Treme-Lafitte, Iberville, Bayou St. John, Black Pearl, and Mid-City.

Conclusion

No matter what you’re looking for, New Orleans real estate has something for you. With a large number of homes bought and sold every year, buyers and sellers are both happy, and getting into a typical home won’t break the bank. The metro area is accessible and the culture of the city is infectious and vibrant. So come on down to New Orleans and see what it holds in store for you.