Why is New Orleans real estate cheap? The short answer is, it’s not.
Once upon a time, New Orleans had cheap real estate. There are many reasons that it has become largely unaffordable for people who live there. Some will blame Airbnb, others will saddle the movie industry with this burden. And I think both are true in their own ways.
Here’s what you should know: people moved here from other places and said, “WOW! This is CHEAP!”, and then started buying up property and turning it into short-term rentals, because at the time, New Orleans didn’t have many laws regarding this type of thing. To be fair, wealthier locals got in on this action because it didn’t really affect them, as it wasn’t happening in their neighborhoods.
Because of this situation, housing prices soared while wages never did. Unless you were in a higher tax bracket, working-class neighborhoods like the Irish Channel were out of reach for many locals to purchase homes in.
Aren’t there plenty of locals who buy houses there?
Sure, there are! But many of these people can no longer afford to buy in the neighborhoods they have been renting in for years. The “walkable” neighborhoods are too expensive for most New Orleanians.
Wealth disparity
There is a very large gap in wealth disparity in New Orleans. The people who run our entire hospitality industry, though the backbone of this city, were forced to move farther and farther out of the city. For me, this ruins the city’s true essence. We are truly a melting pot, and I see far less diversity in certain neighborhoods than we used to.
What would we like to see change in our New Orleans neighborhoods?
I would like to see more neighborhoods in New Orleans that are considered “walkable.” It would be amazing for many folks to walk to a bodega and grab some fresh fruit or have a little bistro down the block. All of this used to exist in our neighborhoods decades ago. Let’s get this back!
Until then…
If you’re looking for “cheap” real estate in New Orleans, you may have to venture into neighborhoods you’re less familiar with. Have you explored Hollygrove, Algiers (not Algiers Point), Gert Town, Central City, Leonidas, or Pontchartrain Park? All of these areas offer more budget-friendly options! And, let me add, they are not BAD locations! Are you going to walk to a Michelin-starred restaurant from here? No. But you can own a home, live in New Orleans, and still be 15-20 minutes (at most) from whatever you want.
If you don’t like these neighborhoods, then we would suggest checking out some of the suburbs. Now, not all of these are very cheap either – but some are more so than others.
Last option: buy a fixer-upper in your favorite location and get to work. This will require patience, cash, and/or a renovation loan, too. And just because you’re looking for a house that needs work, does not mean this property will be “cheap.” It’s just less expensive than the already renovated houses in the area!
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