If you’re on the hunt for a great real estate investment, the New Orleans real estate market is your best shot at finding one. Why? We’ll tell you everything you need to know. Let’s get into the facts.
The New Orleans Real Estate Market 2019
Knowing where and when to invest all depends on how a market is trending. How is the New Orleans housing market 2019 trending? Let’s cover the main factors of the economy and industry that are affecting the market.
Real Estate Market Trends
- Prices are decreasing while housing inventory is increasing; low prices and a rise in houses for sale on the market have cooled it down to a buyer’s market.
- Although New Orleans home values don’t compare to the country’s more luxurious markets, its real estate is some of the most expensive in the Louisiana real estate market.
- New Orleans luxury homes are on the market for an average of 14 months.
- The median home value in New Orleans is $183,000 and it’s expected to rise 2.6 percent within the next year.
- The median price of homes that sold in the New Orleans real estate market is $232,900.
- Short term rentals make up one-tenth of the residential housing stock in some of the most popular New Orleans neighborhoods.
- The highest appreciating neighborhood since 2000 in the New Orleans real estate market is Saint Claude Ave/Alvar St.
Related: What Real Estate Market Trends to Look for Before Making an Investment
This positive housing market forecast doesn’t end here. There’s still one element buzzing around that needs to be considered before investing in New Orleans real estate if you want all your bases covered- Airbnb.
Short Term Rentals: Is Airbnb Legal in New Orleans?
Many investors are opting for vacation rentals nowadays from how profitable they’ve proven to be. There’s definitely a market for them and with popular booking platforms like Airbnb and VRBO now making it easier than ever for property owners to list their rental properties for rent, it’s a no-brainer. And, as a lot of people realized that, the market became flooded with Airbnb rentals to the point where cities have had to pass new laws to regain some order.
With city legislators putting more pressure on the legality of Airbnb rentals in cities across the nation, this is a valid question. We’ve been hearing a lot about tighter regulations on short term rentals in some of the bigger metro areas like New York and San Francisco, and many other cities are right behind them. But what about Airbnb New Orleans?
Related: Top 3 Cities in the US with Strict Airbnb Regulations
Airbnb New Orleans 2019
Two years ago, the city made efforts to legalize the industry in hopes of keeping tourism up while still protecting residents. And it worked. Airbnb was officially legalized in the New Orleans real estate market in 2016. However, recently there has been some criticism from opponents about the leniency of these laws; they’re saying Airbnb regulations need to be tightened in the New Orleans real estate market.
The issue was brought up to the City Council and they approved some changes. Currently, New Orleans homeowners can still rent part of the house they live in to vacationers, but there will be no new or renewed licenses for rentals of whole homes that are not occupied by the owner. So out-of-state investors might have a difficult time buying property in New Orleans for Airbnb investment right now. But things won’t be as strict in the later months of this year. The city only issued a 9-month moratorium on some rental licenses back in September. So it doesn’t look like there are any long term bans on short term rentals.
However, as it’s clear the city is trying to fight against investors operating short-term rentals, proceed with caution when it comes to this rental strategy and keep watch of any new laws and regulations that might pop up.
Luckily, long term rentals in New Orleans are still a profitable choice. Let’s look at the data for both rental strategies.
Related: Your Real Estate Investment Guide to Airbnb Rental Properties: Where Is Airbnb Legal?
New Orleans Housing Market 2019- Mashvisor’s Data
To really understand how New Orleans investment properties are performing, you need real estate data. Mashvisor’s investment property calculator has summarized the key figures for measuring investment return and property performance in the New Orleans real estate market. With data for both short term and long term rentals, investors will know exactly what to expect.
City-Level Data for the Average New Orleans Investment Property
- Median Property Price: $413,207
- Price per Square Foot: $220
- Average Days on Market: 130
- Price to Rent Ratio: 20
- Monthly Traditional Rental Income: $1,720
- Traditional Cash on Cash Return: 2%
- Monthly Airbnb Rental Income: $2,791
- Airbnb Cash on Cash Return: 4%
- Airbnb Occupancy Rate: 55%
If you want to find data like this on any city of your choosing, you can! To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.
Related: The Best Investment Property Calculator in 2019
If this wasn’t enough, we’ve also analyzed some of the top performing neighborhoods in the New Orleans real estate market so you know exactly where to start your search.
Best Neighborhoods in New Orleans
Here are the best neighborhoods for real estate investment in the New Orleans real estate market.
Best Neighborhoods for Airbnb Rentals
St. Bernard Area
- Median Property Price: $120,000
- Price per Square Foot: $82
- Average Days on Market: 90
- Monthly Airbnb Rental Income: $2,591
- Airbnb Cash on Cash Return: 13%
- Airbnb Occupancy Rate: 40%
B.W. Cooper
- Median Property Price: $233,000
- Price per Square Foot: $142
- Average Days on Market: 59
- Monthly Airbnb Rental Income: $2,530
- Airbnb Cash on Cash Return: 13%
- Airbnb Occupancy Rate: 65%
Seventh Ward
- Median Property Price: $259,909
- Price per Square Foot: $134
- Average Days on Market: 142
- Monthly Airbnb Rental Income: $2,481
- Airbnb Cash on Cash Return: 13%
- Airbnb Occupancy Rate: 59%
To start your search for Airbnb investment properties in the New Orleans real estate market, click here.
Best Neighborhoods for Traditional Rentals
Old Aurora
- Median Property Price: $143,225
- Price per Square Foot: $89
- Price to Rent Ratio: 10
- Monthly Traditional Rental Income: $1,149
- Traditional Cash on Cash Return: 4%
Behrman
- Median Property Price: $161,333
- Price per Square Foot: $97
- Price to Rent Ratio: 10
- Monthly Traditional Rental Income: $1,303
- Traditional Cash on Cash Return: 4%
Central City
- Median Property Price: $214,000
- Price per Square Foot: $121
- Price to Rent Ratio: 13
- Monthly Traditional Rental Income: $1,371
- Traditional Cash on Cash Return: 4%
To start your search for traditional investment properties in the New Orleans real estate market, click here.
Bottom Line
The New Orleans real estate market is a great place to invest for so many reasons. It has a wide range of rental properties, whether you rent out long term or short term. The data backs up the investments, and 2019 is displaying some positive market trends. To make sure you’re making the best real estate investment decisions, don’t forget to sign up for Mashvisor.