New Orleans Investment Property for Sale - 2024 Rental Home Appreciation

The New Orleans real estate market has all the markers for being an excellent long-term investment opportunity. It’s an affordable market with stable appreciation rates and above-average population growth. The city’s population growth fuels the demand for long-term rental properties and keeps real estate agents busy. Nola is also a vacation destination with a solid short-term vacation rental market. Real estate investors interested in a New Orleans rental property should act quickly. At the same time, the homes for sale are still affordable.

New Orleans's Attractive Housing Market

architecture, and Mardi Gras. New Orleans is a melting pot of cultures and people. It’s a great place to visit and live.

Real estate investors can find everything from foreclosures and new construction to commercial real estate and residential properties for sale in New Orleans. Whether you’re looking to invest in multi-family homes as a short-term rental property to list on Airbnb or single-family homes for long-term rental property, there’s a New Orleans rental property to help increase your cash flow.

The New Orleans area is home to many great suburbs and neighborhoods for investors to consider. They include Baton Rouge, French Quarter, Hammond, Lakeview, and Metairie.

• Baton Rouge: Baton Rouge is located 81 miles northwest of New Orleans along I-10. It’s the capital of Louisiana and the state’s 2nd largest city. The median listing price in Baton Rouge is $147/sqft, and the median sales price is $260,000. The median rent is $1,500/month.
• French Quarter: The French Quarter is located along the Mississippi River and surrounds Jackson Square. It’s perhaps New Orleans’ most famous neighborhood known for its Creole-style architecture, Mardi Gras, street cars, and Café du Monde. The median listing price in French Quarter is $496/sqft, and the median sales price is $435,500. The median rent is $2,250/month.
• Hammond: Hammond is located 55 miles north of New Orleans across Lake Pontchartrain along I-55. It’s known for its delicious strawberries and is home to Southeastern Louisiana University. The median listing price in Hammond is $128/sqft, and the median sales price is $215,000. The median rent is $1,100/month.
• Lakeview: Lakeview is between West Side and New Orleans City Park in north New Orleans. It’s known for its beautiful lakefront views, marinas, and seafood restaurants. The median listing price in Lakeview is $266/sqft, and the median sales price is $575,000. The median rent is $2,200/month.
• Metairie: Metairie is located 8 miles west of New Orleans along I-10. It’s located along the south shore of Lake Pontchartrain and is known for its great Cajun food, jazz, and nightlife. The neighborhood’s affordability and school district attract many families. The median listing price in Metairie is $191/sqft, and the median sales price is $330,000. The median rent is $1,850/month.

A few other neighborhoods worth noting are Gentilly, home to the University of New Orleans; Marigny, known for the Cajun bistros and bohemian bars that line Frenchmen Street; Mid-City, a residential neighborhood that’s home to the New Orleans Botanical Garden; and Uptown, home to Tulane University and Loyola University.

Rental Home Appreciation in New Orleans

New Orleans has a great rental market with demand for long-term and short-term vacation rentals. Over half (54%) of households in New Orleans are renter-occupied, and the city has a vacancy rate of just 2.4%.

According to Realtor, the median listing price in New Orleans is $238 per square foot with a median sale price of $374,900. Zillow’s Home Value Index reports an 11.1% change since last year. The median rent in New Orleans is $1,800 per month. What’s more, real estate experts estimate a cap rate of 6-7%. That creates many opportunities to increase cash flow from rental income.

New Orleans also has a strong vacation rental market. According to AirDNA, Charleston has an average Airbnb occupancy rate of 67%. Hosts generate an average of $3,500 a month in rental income.

With such a solid long and short-term rental market, a New Orleans rental property has the potential to yield significant returns for real estate investors and property management companies.

Economic Growth in New Orleans

New Orleans is the largest city in Louisiana. The city’s population took a hit after Hurricane Katrina but is bouncing back. It grew 11.7% between the 2010 and 2020 censuses, well above the national average of 7.4%. People from high-tax states like New York are drawn to the city’s rich history and affordability.

New Orleans is a tourism and education hub for the Gulf Coast. It’s home to the Port of New Orleans, a central cruise ship terminal, and over ten colleges and universities. They include Loyola University, Tulane University, and the University of New Orleans.

New Orleans’ primary industries are technology, advanced manufacturing, trade and logistics, and health sciences. East Jefferson General Hospital, Elmer Chocolate, Entergy Corporation, and Ernst & Young are the largest employers. CenturyLink is also headquartered in New Orleans. These employers provide jobs that attract new residents and fuel the city’s economy. In fact, New Orleans has an unemployment rate of 4.5%.

The New Orleans real estate market offers a lot to homeowners and real estate investors.