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Where to Invest in the New Orleans Housing Market

by Heba BakerJun 19, 2019December 18, 2023

If you’re considering a rental property investment in the New Orleans housing market, do yourself a favor and read up on the best place to invest in real estate.

The New Orleans Real Estate Market: How’s It Looking?

Before we tell you where to invest in real estate for your best chances at a profitable New Orleans investment property, let’s cover some basic housing market trends first. It’s always important to keep track of the trends of a prospective investment market so you’re ready to seize any opportunities at the right time.

Some Key Trends to Know About the New Orleans Housing Market

The median home value for New Orleans houses for sale is currently $178,700. Things are in favor of investors this year as the New Orleans housing market is currently a buyer’s market. This means that there is a good inventory of housing stock on the market; investors have won’t have a difficult time searching for New Orleans houses for sale.
According to NeighborhoodScout.com, the New Orleans housing market has experienced an average annual appreciation rate of 3.44 percent over the last ten years. A New Orleans real estate investment will be a stable addition to your portfolio as it is considered to be in the top 20 percent for real estate appreciation nationally.
New Orleans’ population is composed of a mixture of both homeowners and renters, with people primarily living in single-family homes. This makes sense as single-family homes make up 44.55 percent of New Orleans’ housing units.
Homes in the New Orleans housing market typically sell 4 percent below listing price. The average sales price of houses in the city is around $285,000; this number is 0.88 percent higher than last year.

So now you have a better idea of how the New Orleans housing market is looking. This is information that an interested investor should generally have when analyzing a market for a real estate investment. However, this isn’t enough to make a sound decision and settle on a location. For that, you’re going to need Mashvisor’s data.

Mashvisor’s Data for New Orleans

Using our investment property calculator, we’ve put together a list of the key return on investment metrics and rental market performance data. This is critical data for any real estate investor looking to make a smart investment decision. You can gain access to these real estate analytics to assess any property or location by starting a free trial right now (and get 20% off!).

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New Orleans Real Estate Market Forecast

Median Property Price: $451,728
Price per Square Foot: $246
Price to Rent Ratio: 24
Average Days on Market: 105
Monthly Traditional Rental Income: $1,597
Traditional Cash on Cash Return: 2%
Monthly Airbnb Rental Income: $3,396
Airbnb Cash on Cash Return: 6%
Airbnb Occupancy Rate: 53%

Here you have a more in-depth analysis of the New Orleans housing market. Notice how there are metrics for rental property performance under both the long term (traditional) and the short term (Airbnb) rental strategy. It’s important to make the distinction between the two as each has different factors for success. So much so that the optimal rental strategy in the New Orleans housing market differs based on the neighborhood you’re investing in. So we will be listing the best neighborhoods in New Orleans shortly. First, however, we need to cover one of the important factors affecting a successful Airbnb New Orleans investment- Airbnb regulations.

Is Airbnb Legal in New Orleans?

Short answer- yes. Unfortunately, things aren’t quite that simple. The city council approved a set of Airbnb regulations in New Orleans in January. Although these regulations were motivated by the uncontrolled spread of Airbnbs across the city, they apply to all short term rentals. The important things investors need to know are:

Short term rental operators must apply for a license and include the license number in their Airbnb listing as any listing without a license number is out of compliance.
Short term rentals aren’t allowed outdoors, in a recreational vehicle, or in an accessory structure (shed, garage, etc.).
You can only host one party of guests per short term rental.
Short term rentals must outwardly appear as a residential dwelling.
Temporary short term rentals (a maximum of 90 rental nights per year) can be rented out without the presence of the property owner.
Commercial short term rentals do not have a limit of rental nights per year and do not require the presence of the property owner during the rental period. However, they must be in a non-residential zoning district. Click here for more details on where short term rentals are allowed in the New Orleans housing market.

If you’d like to know more about short term rentals in New Orleans, click here.

Now that you know what to expect from the law, here are the best neighborhoods for a successful Airbnb investment in the New Orleans housing market.

Best Neighborhoods for Airbnb Rentals

Read Blvd. West

Median Property Price: $175,925
Price per Square Foot: $89
Price to Rent Ratio: 10
Average Days on Market: 19
Monthly Airbnb Rental Income: $3,213
Airbnb Cash on Cash Return: 12%
Airbnb Occupancy Rate: 47%

Algeirs Point

Median Property Price: $250,600
Price per Square Foot: $143
Price to Rent Ratio: 16
Average Days on Market: 97
Monthly Airbnb Rental Income: $3,698
Airbnb Cash on Cash Return: 15%
Airbnb Occupancy Rate: 66%

Holly Grove

Median Property Price: $152,725
Price per Square Foot: $121
Price to Rent Ratio: 11
Average Days on Market: 170
Monthly Airbnb Rental Income: $3,119
Airbnb Cash on Cash Return: 18%
Airbnb Occupancy Rate: 59%

Best Neighborhoods for Traditional Rentals

Whitney

Median Property Price: $85,000
Price per Square Foot: $62
Price to Rent Ratio: 6
Monthly Traditional Rental Income: $1,241
Traditional Cash on Cash Return: 8%

Florida

Median Property Price: $259,933
Price per Square Foot: $102
Price to Rent Ratio: 12
Average Days on Market: 39
Monthly Traditional Rental Income: $1,746
Traditional Cash on Cash Return: 7%

Plum Orchard

Median Property Price: $95,500
Price per Square Foot: $96
Price to Rent Ratio: 7
Monthly Traditional Rental Income: $1,103
Traditional Cash on Cash Return: 6%

To start searching for real estate properties in the New Orleans housing market, click here. To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.

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