Did you know that the Louisiana real estate space has a homeownership rate of 66.6%? The total owner-occupied housing units sum up to 1,157,652, while the renter-occupied units add up to 583,424 units.
The energy sector has driven the economy of Louisiana in recent years, contributing to its modest gains. Affordability is one factor that has favored the Louisiana real estate market big time.
The median home value records way below the national average in Louisiana. So, it’s considerably more affordable to own in most of Louisiana than it is to rent a house.
Read on to learn the top Louisiana real estate trends in 2022.
Table of Contents
Median Home Prices
Today, the median home value in Louisiana stands at $201,414. Even with its current level, the average home selling price keeps testing new highs every month.
The Louisiana home buying market has failed to keep pace with national appreciation trends. This state enjoys relative affordability as far as home buying in Louisiana is a matter of concern.
So, this advantage will likely spur more home buying activity. Although they are historically high, Louisiana cash home buyers have the chance to capitalize on today’s prices.
Median Rent Prices
The latest increase in Louisiana home values has had an extended impact on the local rental market. The pricing out of more people from the home buying market has seen more renters competing for the few available properties.
Since landlords have found themselves in a position of power in this state, their asking prices reflect as much. The upsurge in rents has outperformed the home value appreciation over the previous year.
So, you may start to witness rent increases rage as home values catch up.
Just like every other place, foreclosures in Louisiana are on the rising trend. Compared to last year, foreclosure rates have increased significantly, and this trend won’t stop anytime soon.
With more banks having the mandate to initiate the foreclosure process, numbers of distressed homeowners across the state will likely increase. Having said so, real estate investors in Louisiana should start seeking financing options.
Having immediate access to funding can facilitate real estate investors in this state to help troubled homeowners secure a deal.
Housing Market Predictions
In Louisiana, the borrowing costs are set to increase. To limit inflation, the federal government proclaimed that it’d increase interest rates throughout 2022.
Increasing interest rates should prompt buyers to act sooner than later. This may even lead to an increase in home selling prices than expected.
Prices in the Louisiana real estate space will continue to increase. Even though the prices will continue rising, they will happen at slower rates.
Louisiana Real Estate Market
The Louisiana real estate market has done well despite the challenges on its way. Economic conditions seem to be doing great in the recent past.
This allows more individuals the opportunity to participate in the housing market. More Louisiana residents are now buying homes, which should trigger more encouraging activities.
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