New Orleans and LA real estate

For each of the past two days, Nola.com has featured articles on the state of the N.O. and LA residential real estate market. (links below) The first cited a study from the University of MS which ranked LA dead last of 100 cities and BR 92nd. Today, the article was a forecast from Zillow, their 12 month expectation being that six LA cities would have the worst declines of the 300 largest U.S. cities.

quote:

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Among the 300 largest housing markets in the country, New Orleans, Lafayette, Shreveport, Alexandria, Houma and Lake Charles are forecast see to the greatest declines in home value index from May 2025-May 2026.

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Ken Johnson, of the University of MS said this.

quote:

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"There is one bright and shiny hope for New Orleans," Johnson said:

"A key data point — the price to rent ratios — are very low. That typically signals soon-to-be property appreciation. So, in New Orleans, we might well be at the right buying point."

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He could be correct on that point, but I also think that insurance is likely the cause of the price/rent ratio, and that may not change.

Curious to know how you are feeling about your N.O. or other LA real estate. I own a condo in downtown N.O., which was purchased after losing our home to Katrina. It's now an occasionally-used second home, but by my estimation, it has only appreciated 17% in nearly 20 years. We've had assessments and POA increases, with more likely on the way, much of it to do with insurance costs. I am hopeful that the rate of insurance increases has slowed to be no more than the CPI.

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