A new study from Bankrate finds Louisiana has a cool housing market and New Orleans and Shreveport are among the coldest for their market size in the country. Data analyst Bankrate Alex Gailey says high homeowners’ insurance rates is one reason why it’s tough to sell a home in Louisiana.
“Which have surged due to increasing weather-related risks insurers pulling out from higher-risk areas so this is pushing up total housing costs,” Gailey said.
Gailey says the Bankrate Housing Heat Index looks at data from a variety of sources and Louisiana ranks below average in every category.
“Home prices have declined about three percent year over year. Homes are taking longer and longer to sell and it’s just not experiencing much population growth,” Gailey said.
Gailey says they also found many Louisiana residents can not afford to own a home.
“You need a median household income of at least $76,000 per year to afford a typical home in Louisiana and we have found that in our own research and a lot of families just don’t make enough money to buy a home,” Gailey said.
Gailey says on the flip side, a cool housing market is good for buyers as it means more options, you can negotiate more and get concessions from the seller.
