Whether you’re an old time investor or not, you’re probably looking for the best location to invest in the new coming year. Here’s a suggestion for you: New Orleans. There’s been some great news for New Orleans real estate investing this past year; and it’s expected to run along the new year as well! So, read on to get the gist about New Orleans real estate market and receive some tips.
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New Orleans Real Estate Investing Current Status
In a nutshell, the New Orleans real estate investing market is promising. Home prices were up this past year compared to the previous few years; one-year appreciation rates of 10.9% by far exceeded that of the national average at 4.9%; and yet, property prices continue to be among the most affordable in the country.
Top that information with it’s expanding diversified economy. New Orleans is a growing hub for business, movie industry, entrepreneurial activity, and medicine field. Therefore, it continues to draw in a wide variety of employees with ages that are high enough to meet the high rents.
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With the city’s tourist magnetism, architecture, and unique history, rent is considered high there. This means decent success and profit for you as a potential investor. The New Orleans real estate investing market is currently seeing most of its success in the Lakeview area and its surroundings, in addition to West St. Tammany. Real estate investors are also seeing most success with single-family homes, which are most in demand.
This current success in the New Orleans real estate investing market is expected to continue along the new year. It all depends on mortgage interest rates, employees’ wages, and the overall economy of South Louisiana. With that being said, there are no expected hurdles along the way for these factors that may interrupt the current success for New Orleans real estate investing market.
New Orleans Real Estate Investing Ideas
If you’re a real estate investor that is new to New Orleans, then traditional real estate investing would be a good idea for you based on the market’s current success, which the new year expects to follow. But, there are some other fun ideas out there for you too.
People are obsessed with historical buildings in New Orleans. With its French, Spanish, and Creole influence, the architecture is to die for! You can use that to your advantage and invest in flipping houses in New Orleans. You can find an old, historical building, renovate it, and then sell it for a decent profit.
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You can also list your property on Airbnb or another vacation rental website. It was actually just in October 2016 that short-term rental regulations were approved in the city’s council. With that being said, keep in mind that there’s a limit of 90 days per year on whole-home renting for out-of-town guests. But, the Airbnb platform is currently working with the city council to extend the period of time. Just make sure you stay in line with the city’s laws on short terms rentals.
Related Article: Real Estate Investing: Traditional vs. Airbnb Investments
With that being said, if you’ve already invested in New Orleans real estate investing market, now is a perfect time for you to “cash out.” It’s something to consider, depending on your goals, because now is a great time for you to sell at a great deal. Buyers are met with low interest rates right now, and as a seller you would make great profit.
Where To Invest In New Orleans?
These are the top neighborhoods to invest in for either traditional or Airbnb investment properties.
1. French Quarter
- Median Price: $649,500
- Average Traditional Rental Income: $1,988/mo
- Average Airbnb Rental Income: $4,050/mo
- Airbnb Occupancy Rate: 54.79%
- Median Price: $484,000
- Average Traditional Rental Income: $1,732/mo
- Average Airbnb Rental Income: $3,053/mo
- Airbnb Occupancy Rate: 50.68%
- Median Price: $375,500
- Average Traditional Rental Income: $3,309/mo
- Average Airbnb Rental Income: $2,381/mo
- Airbnb Occupancy Rate: 50.66%
3. Lower Garden District
- Median Price: $391,663.00
- Average Traditional Rental Income: $2,464/mo
- Average Airbnb Rental Income: $2,323/mo
- Airbnb Occupancy Rate: 49.69%
4. Seventh Ward
- Median Price: $172,000
- Average Traditional Rental Income: $1,052/mo
- Average Airbnb Rental Income: $2,884/mo
- Airbnb Occupancy Rate: 59.05%
5. Tremé– Lafitte
- Median Price: $275,000
- Average Traditional Rental Income: $1,646/mo
- Average Airbnb Rental Income: $2,053/mo
- Airbnb Occupancy Rate: 56.25%
Search more neighborhoods on Mashvisor to view potential properties and rental comps.
The Bottom Line…
The New Orleans real estate investing marketing has seen a great year in 2016! With the city’s current overall economic development, there is no reason to expect a stop in success in 2017. For that reason, New Orleans will be a great location to consider for real estate investing. Whether, you want to get a little creative in real estate and flip houses or list your property on Airbnb, or simply opt for traditional real estate investing, you will most likely be met with success if done right.