Homebuying activity in Louisiana between 2018 and 2023 underwent significant shifts, especially for households earning under $250,000 annually. This income bracket encompasses the vast majority of Louisiana’s homebuyers and thus reflects broader market trends. During this period, Louisiana’s housing market saw record-low interest rates fueling a frenzy, followed by a sharp rise in rates that cooled demand, all against the backdrop of low inventory and economic uncertainty.
Types of Homes Purchased: Size, Style, and New vs. Existing
Louisiana homebuyers earning under $250K predominantly purchase single-family homes, often modest in size and price. Statewide data show that single-family houses make up the vast bulk of home sales, whereas townhouses and condos represent only a small fraction of purchases even in urban areas. In 2024, townhomes/condos accounted for under 9% of sales in the New Orleans area (the highest share in the state).
Home Size and Features
Many under-$250K households purchase mid-sized homes suitable for families. In recent years, demand was especially high for mid-range properties. Homes priced roughly in the $150K–$225K range (often 3-bedroom starter homes) tended to sell fastest – in 2024 this price bracket had the shortest average time on market (around 64 days).
By contrast, the smallest, most affordable homes (under ~$150K, often older or needing work) became harder to find. The number of homes sold below $149,000 dropped over 8% from 2023 to 2024. This suggests that the supply of “starter” homes has dwindled, whether due to investors snapping them up or owners holding onto them.
For this income group, the sweet spot has been modest single-family houses, often 1,500–2,000 sq. ft., with enough space for a family but still within budget.
New Construction vs. Existing Homes
Most sub-$250K buyers in Louisiana purchase existing homes, as new construction in their price range is limited. Louisiana has historically underbuilt housing since the late 2000s, meaning newly built homes are relatively scarce and often priced above what moderate-income buyers can afford.
By 2025, new constructions made up only about 12% of home sales in Louisiana, implying nearly 9 in 10 purchases were existing homes. New developments that do target this income segment tend to be starter-home communities on suburban fringes, offering simpler finishes and smaller lots to keep prices down.
Older homes (sometimes decades old) are very common in Louisiana’s sales, given the state’s rich history and slower growth. Buyers under $250K often buy homes built in the mid-20th century or earlier, especially in cities like New Orleans and Baton Rouge where charming historic houses (shotgun homes, bungalows, Acadian-style cottages, etc.) are plentiful in the affordable range.
Home Style Preferences
In terms of style and features, Louisiana buyers under $250K generally prioritize functionality over luxury. Three-bedroom, two-bath layouts are standard. Many seek homes with modern updates or energy-efficient features, but given budget constraints, they may accept older appliances or finishings and plan to update gradually.
Manufactured homes also play a role in rural parts of Louisiana – some moderate-income buyers opt for manufactured or mobile homes on land as a more affordable path to homeownership, although these are a minority of sales and not always captured in Realtor sales data.
Where in Louisiana They Are Buying: Regional Patterns
Homebuying trends for this income group vary across Louisiana’s cities, suburbs, and rural areas. Overall, most sales occur in the state’s population centers – the Greater New Orleans area, Baton Rouge metro, Lafayette/Acadiana, and Shreveport/Bossier – but each region has distinct dynamics.
New Orleans Metro
This area has a mix of buyers, including many under $250K households purchasing their primary homes. Through 2018–2023, New Orleans saw strong demand and rising prices until the pandemic boom cooled. By 2022–2023, the New Orleans market was softening relative to other regions, partly due to insurance costs and out-migration.
In 2024, home sales in the district covering New Orleans fell by over 10%, the steepest drop in the state. Still, many sub-$250K buyers purchased in suburban parts of the metro (e.g., Kenner, Metairie on the Jefferson Parish side, or the West Bank) where prices are lower than the historic core.
Baton Rouge Area
Baton Rouge has been relatively stable and steady in homebuying trends. It’s the state capital and home to LSU, with many government and university jobs anchoring the economy. Households under $250K here have been active in both the city and its suburban outskirts (like Livingston and Ascension Parishes).
Unlike New Orleans, Baton Rouge did not see a significant post-2020 downturn in sales – in fact, by 2024 the Baton Rouge region slightly increased home sales versus the prior year. Buyers in this area often seek suburban single-family homes in family-friendly communities.
During 2018–2023, southeastern Baton Rouge and suburbs like Denham Springs and Prairieville grew in popularity, offering newer homes under $300K (some dipping below $250K for smaller models).
Acadiana (Lafayette & Lake Charles regions)
South-central and southwestern Louisiana had a rollercoaster 2018–2023. Lafayette’s economy (often tied to oil and gas) suffered a downturn around 2016 but recovered by late 2010s, boosting home sales to locals under $250K. Many buyers here purchase ranch-style homes or Acadian cottages typical of the region.
Hurricane impacts in 2020 hit Lake Charles hard (Hurricane Laura and Delta), devastating housing stock. In the aftermath, some households in that area took insurance money and moved elsewhere, while others under $250K had to compete for the limited undamaged homes or temporary new builds.
As rebuilding progressed, Lake Charles and surrounding Calcasieu Parish saw an influx of construction and by 2022–2023 there was increased supply of brand-new homes priced for moderate incomes (often aided by disaster recovery funds).
Northern and Rural Louisiana
In the state’s northern half, home prices are generally lower, so households under $250K essentially are the market majority. Regions like Shreveport-Bossier have struggled with economic stagnation in the 2010s, resulting in flat or declining population.
Yet interestingly, by 2023–2024 some of these areas showed resilience in home sales. For instance, the district covering Monroe/Alexandria (northeastern and central LA) actually saw a 2.7% increase in closed sales in 2024, bucking the statewide cooling trend.
In Shreveport, buyers under $250K can find ample choices under $200K – often brick ranch homes or older Victorian-era houses. By 2023, Shreveport/Bossier had roughly 5+ months of inventory, higher than the state’s southern metros. This gave under-$250K buyers up north more negotiating power.
Regional Price Differences
Across the state, regional price differences are notable. The median sale price in Louisiana was about $240,000 in 2022, but this masks the spread: New Orleans metro’s median is higher (often $300K+), whereas many rural parishes have medians under $150K.
Thus, what a <$250K income household can buy varies widely by location. For example, $200,000 might barely fetch a small starter home in suburban New Orleans, but could buy a sizable 4-bedroom in Monroe.
Buyer Profiles: Demographics and Buying Motivations
Who are the homebuyers in Louisiana’s under-$250K cohort? In a word: diverse. This group includes young couples searching for their first home, single professionals deciding to buy instead of rent, growing families trading up to a larger house, and older homeowners downsizing for retirement.
Age Trends
Homebuyers have skewed older in recent years. Nationally, the median first-time buyer age hit a record 38 in 2023, up from 35 just a year prior. Repeat buyers’ median age climbed to 61. Louisiana likely reflects this aging trend.
Millennials (born 1981–1996) were entering their prime homebuying years during 2018–2023, but many delayed purchases until their 30s or even 40s due to the challenges of student debt, the aftermath of the 2008 recession, and then rapidly rising home prices.
Older buyers (Baby Boomers and Gen X in their 50s, 60s, even 70s) have become a larger share of the market. Some are downsizing from a larger family home into a smaller one that’s easier to maintain or into a condo. Others are relocating to be closer to family or health care.
Household Composition
The majority of homebuyers in this income range are married couples, but single buyers make up a substantial segment. National data for 2023 shows married couples constituted about 62% of all buyers.
Single women in particular have become a notable force in the market. Single female buyers accounted for 20% of home purchases nationwide in 2023 – a share that has edged up – and single men were around 8%.
The trend of single women (often professional women or single mothers) buying homes on their own has been evident in Louisiana’s cities. Unmarried couples (around 6% of buyers) also contribute, often pooling two moderate incomes to afford their first house.
Race and Ethnicity
Louisiana’s population is roughly 33% Black, 5% Hispanic, 3% Asian, with the remainder White non-Hispanic. Homebuying in this income bracket includes all races, but disparities are notable.
Black homebuyers form an important part of the market, especially given the large Black population in cities like New Orleans, Baton Rouge, and Shreveport. Encouragingly, Black homeownership in New Orleans rose to about 50% by 2023, up from much lower decades ago.
Still, a significant gap remains: only about half of Black householders own homes versus roughly two-thirds (or more) of White householders. This is attributable to income disparities (the median Black household income in LA is far below that of White households) and historical barriers.
Income and Financing
By definition, we’re focusing on households earning under $250,000. For context, the median household income in Louisiana is about $55,000 – well below the national median. Many buyers in this cohort have incomes in the $50K–$120K range.
Nationally, the typical homebuyer’s income has surged – by 2023 the median homebuyer income was $108,000, which is nearly double Louisiana’s overall median income. This reflects that homeownership is increasingly achievable mainly for those substantially above median income.
Many use FHA loans (with 3.5% down) or VA loans (zero down, common among our many veterans). Others go with conventional loans with 5-15% down. First-time buyers here frequently tap into down payment assistance from the Louisiana Housing Corporation or local grants.
During 2020–2021’s hot market, FHA buyers sometimes lost out to cash or conventional offers, but when the market cooled in 2022–2023, these financed buyers had better chances again.
Buying Motivations
Each sub-group of this diverse cohort has different reasons for buying. A significant portion are first-time buyers, often moving from renting to owning for more stability and to build equity. First-timers (who historically made up around 30-40% of buyers) hit a low nationally – just 24% of recent buyers were first-timers in 2022 – indicating how tough the market became for newcomers.
On the other end, downsizers are usually older empty-nesters. Between 2018 and 2023, more Boomers reached retirement and some chose to sell their larger homes (often to higher-income buyers) and then buy a smaller one with cash or a tiny mortgage.
Relocations are another factor. Some buyers in this group are relocating within Louisiana – say, moving from a rural parish to Baton Rouge for a job, or vice versa if remote work allows a move to a cheaper area. Others are out-of-state transplants moving into Louisiana, bringing perhaps new demand.
A smaller but notable subset are returning Louisianans – people who grew up here, moved away, and later returned (perhaps drawn back by family or a lower cost of living).
Market Influences: Interest Rates, Affordability, and Inventory Constraints
Several external factors dramatically affected homebuying for Louisiana’s sub-$250K households between 2018 and 2023. Chief among them were mortgage interest rates, housing affordability, and the supply (inventory) of homes.
Interest Rates’ Whiplash Effect
The period 2018–2023 saw wild swings in mortgage rates that directly impacted affordability for our target buyers. In 2018, 30-year fixed mortgage rates were around 4.5%, which was a headwind for buyers but still historically moderate.
In 2020 and 2021, as the Federal Reserve slashed rates to stimulate the pandemic-struck economy, mortgage rates hit record lows. Many qualified Louisiana buyers locked in 30-year loans below 3% interest – something almost unimaginable a decade prior.
However, this environment quickly changed. Starting in mid-2021 and accelerating in 2022, inflationary pressures led the Fed to hike interest rates, which sent mortgage rates soaring. By late 2022, the average 30-year mortgage rate had jumped above 7%, reaching levels not seen in two decades. In October 2023, rates briefly hit around 8%, a 24-year high.
In practical terms, consider a $200,000 mortgage: at 3%, the monthly principal+interest is ~$843; at 7%, it’s ~$1,330 – a huge difference for a middle-income household. Thus, interest rates dictated demand. 2020–2021 saw a frenzy of buying (and refinancing) as families rushed to capitalize on cheap loans.
Then, in 2022–2023, transactions plummeted – Louisiana’s closed sales fell by 27% in 2022 and another ~22% in 2023 as rate hikes priced out buyers.
Housing Affordability and Price Trends
Affordability is the intersection of home prices, interest rates, and incomes. Even before the rate spikes, home prices themselves were climbing in Louisiana. From 2018 to mid-2022, the state saw substantial home price appreciation, which outpaced income growth for many under-$250K families.
The median sale price in Louisiana rose from roughly $195,000 in 2019 to about $240,000 in 2022 – roughly a 23% increase in just a few years. Much of that jump occurred during the pandemic housing boom: median price went from $230K in 2020 to $245K in 2021 (+6.5%), and stayed around the mid-$240Ks in 2022.
However, Louisiana’s price growth was more modest than the national average. Nationally, existing-home prices rose ~45% from 2016 to 2022, whereas Louisiana’s median only rose about 4% between 2020 and 2023 (from $230K to $240K).
The Louisiana Realtors Association’s Housing Affordability Index – which measures whether a typical family earns enough to qualify for a median-priced home – vividly illustrates the affordability challenge. The index for Louisiana was around 160 in 2019 (meaning the median income was 160% of what’s needed for the median home), but it plummeted to the 110s by 2023.
This decline means that the typical Louisiana family barely earned what was necessary to afford the median home – a stark change from a few years prior when they earned much more than needed.
Inventory Constraints and Market Competition
Another major factor was the supply of homes for sale. In Louisiana, as in most of the country, the late 2010s saw inventory gradually tighten, and by the pandemic boom it reached historic lows.
Louisiana’s inventory hit its tightest point around 2021. In that year, the state had only about 1.6 months of supply on average – an extremely low level. This means that virtually every reasonably priced listing would get snapped up quickly, often with multiple offers.
The causes of low inventory were multi-fold: a construction deficit (builders hadn’t caught up from the 2008 crash), homeowners staying put (especially older folks aging in place), and in 2020-2021, people reluctant to sell during a pandemic.
By 2023, new listings in Louisiana had fallen for two consecutive years, reaching their lowest levels in at least a decade.
As the market slowed in 2022–2023 due to high rates, inventory did increase somewhat – rising from the rock-bottom 1.6 months in 2021 up to ~3.4 months in 2022 and finally ~5.1 months by mid-2023. By late 2023 and 2024, Louisiana’s inventory was roughly back to a balanced level (~5 months supply).
However, the quality of inventory was an issue. A lot of what did come on the market were either very expensive homes (above this cohort’s range) or houses with issues (older, needing repair, in less desirable locations).
Comparing 2018–2023 to the 2008–2017 Decade
How do recent trends for this income group compare to the previous decade (2008–2017)? The contrast is striking in some ways: the earlier period included the housing bust and Great Recession, whereas 2018–2023 featured a boom and then a sharp rate spike.
Homeownership Rates and Buyer Confidence
The 2008–2010 crash shook confidence and kept many would-be buyers (especially younger ones) on the sidelines well into the 2010s. From 2008–2017, homeownership rates in Louisiana were recovering slowly from post-Hurricane Katrina lows and the national foreclosure crisis.
By contrast, 2018–2023 saw homeownership demand roar back when conditions allowed (low rates). Millennials who had delayed buying finally started entering the market en masse around 2015–2020.
Price Trajectory
Louisiana’s home prices in the 2008–2017 decade were relatively flat with modest growth, aside from local volatility from hurricanes. After peaking around 2007, prices dipped slightly during 2008–2010 (in New Orleans, average home prices fell ~3% annually during 2008–2010).
From 2011–2015, prices in Louisiana inched up about 1% per year on average – a very slow climb as the state worked through distressed properties. It wasn’t until the mid-2010s that Louisiana’s home prices surpassed their mid-2000s peak.
In that environment, households under $250K had more affordable options (relative to income) and could often find homes under $150K in many areas. Fast forward to 2018–2023: prices were generally higher and rose faster (especially 2020–21).
Interest Rates and Mortgage Access
In 2008, 30-year rates were ~6.5%. The Fed then cut rates drastically during the recession, bringing mortgage rates to ~5% by 2009 and even ~4% by 2012. So the 2008–2017 buyers enjoyed generally declining interest rates (aside from a spike around 2013–2014).
A big difference was mortgage credit availability. After the subprime crisis, lenders tightened standards significantly. Many under-$250K households in the early 2010s couldn’t get a loan due to stricter credit score and down payment requirements.
By the late 2010s, lending standards loosened somewhat (though nothing like pre-2008 subprime days), making it easier for moderate-income families to qualify, especially with FHA.
Inventory and New Construction
The late 2000s crash led to a glut of homes for a while – in 2008–2012 Louisiana often had plenty of listings (plus many foreclosures). Builders had overbuilt in some areas pre-2008 (or built replacements post-Katrina in NOLA), and then virtually halted building for years.
This meant that in the early 2010s, a household under $250K had lots of bargaining power – they could often get closing costs paid by the seller, and they had choices among inventory.
By the mid-2010s, that excess was absorbed but construction remained slow, laying the groundwork for the tight inventory of the 2020s. So comparing: 2008–2017 was a buyer’s market turning balanced, and 2018–2021 became a seller’s market due to inventory shortage.
In conclusion, households under $250K in 2018–2023 faced a very different landscape than those in 2008–2017. The earlier buyers contended with a recovering economy, easier prices but harder credit, and a market that gradually transitioned from buyer-friendly to balanced.
The recent buyers enjoyed a brief window of extraordinary financing ease and then were hit with one of the fastest interest rate shocks in history. They also had to deal with tighter supply and higher home prices relative to income.
Looking ahead, if interest rates stabilize and more homes come on the market (perhaps as new construction picks up), Louisiana’s under-$250K households could see improved opportunities. The fundamental desire for homeownership remained strong across both decades – and Louisiana families continued to find ways, in boom or bust, to make a home for themselves.
References
- Affordability remains a chief concern in Louisiana’s housing market for 2025
- New data shows Louisiana suffering from domestic migration outflow
- First-Time Home Buyers Shrink to Historic Low of 24% as Buyer Age Hits Record High
- US second home sales slide in pandemic-era vacation hot spots
- Comprehensive Housing Market Analysis for New Orleans, Louisiana
- Is Louisiana now gaining population?
- House Prices by State – Real Estate Data Analysis
- Who Lives in New Orleans and Metro Parishes Now?
- Louisiana Real Estate Market Overview – 2025
- Mortgage Rate History: 1970s To 2025
- Housing Affordability Index – National Association of REALTORS®
