Why Millennials Love New Orleans

Millennials are looking for smaller cities to live in due to the increasing housing prices and job market competition. New Orleans is a city the millennial generation is falling in love with and for many good reasons.

Many have moved to the city for work and pleasure over the past 300 years.

The millennial generation is defined by those born between 1982 and 2004. Basically, home buyers age 35 and under, which is the next big generation of buyers to take over the real estate market.

5th Fastest-Growing City in the Country for Millennials

New Orleans has been rated as the 5th fastest-growing city in the country for millennials, based on a TIME analysis and research provides by the Urban Land Institute. CNN/Money also put New Orleans at the top of the list when it came to millennial homebuyers.

This is due to the population of millennials in New Orleans growing between 2010 and 2015. It has continued to grow, as well. In addition, the percentage of this generation with a new mortgage is higher in New Orleans than other cities across the country.

Reasons Millennials are Flocking to New Orleans

Outside of the fact that New Orleans is one of the most unique cities in the country, millennials have found a number of great reasons to flock to the city. Some of the top reasons include:

•          The incredible culture and history
•          More affordable real estate prices compared to other areas of the country.
•          More options for first-time homebuyers compared to other cities and decades past
•          Plenty of state tax credits and incentives to bring new businesses to the area
•          Growing economy with many larger companies opening new locations in New Orleans including GE Capital, DXC Technology and others

In addition, the city’s local companies continue to grow. Luci and Geocent are both tech companies born in New Orleans and growing fast.

Which New Orleans Neighborhoods are Millennials Loving the Most?

Millennials typically want to be close to the things they need, such as work, shopping, dining and entertainment. Many of the New Orleans neighborhoods offer this, but they may not offer the price range a millennial can handle.

Higher priced areas, such as Mid-City and Uptown don’t exactly draw millennial buyers. However, some do come to these areas because of the increasing inventory of renovated properties. Plus, the top neighborhoods are close to the hottest places for the younger buyers to enjoy.

According to Niche.com, these are the top neighborhoods found in New Orleans for millennial buyers:

•          Uptown
•          East Riverside
•          Black Pearl
•          West Riverside
•          Tuoro
•          Marlyville/Fountainbleau
•          Irish Channel
•          East Carrollton
•          Broadmoor
•          Lakeview
•          City Park
•          Lower Garden District
•          West End
•          Milan
•          Marigny

These neighborhoods offer a balance of affordability with high walkability and convenience. For millennials, these are the top spots because of the price range and the close proximity to top restaurants and attractions.

Hesitating Millennial Buyers Across the Country

While New Orleans is faring better than many other cities with millennials, there’s still hesitation with this generation when it comes to buying a home. One of the leading reasons is the uncertainty of the economy and the financial future of the country.

Another huge reason driving the hesitation is student loan debt. This type of debt has tripled since 2004 and sits at more than $1.2 trillion in total.

Other barriers include believing it could be very difficult to afford a mortgage payment or save for the down payment.

While New Orleans is an attractive city for many millennial home buyers, many are still on the fence. The possibility of a natural disaster still keeps some from coming, but the city still has done very well compared to the rest of the country with this new generation of home buyers.

While the millennial generation may be showing some love for New Orleans, the city still has a ways to go to attract this generation completely. Some areas of the city are in need of improvements in the eyes of a millennial. However, this isn’t a new thing as the hesitation to buy from this generation has been seen all across the nation.

Many of the largest cities in the country are struggling to attract millennial buyers. New Orleans isn’t one of those cities. While it can still improve with this generation, it’s getting the love from millennials other cities are not.