Earning roughly the top 1% of incomes in the state, these affluent buyers have unique homebuying patterns.
The Profile of High-Income Homeowners
Louisianas $500K+ earners are an elite cohort.
In fact, earning $500K annually places a household well within the top 1% of Louisiana earners.
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Housing Affordability and Wealth
$500K+ households can afford homes far above the states typical price points.
Louisianas median home value is about $209K, but affluent buyers often transact in the seven-figure range.
Their housing choices and budgets mean they play in the luxury segment of the market.
In the post-recession 2010s and into the 2020s, this segment has grown.
These high-end homes are within reach for $500K earners, who often have homebuying budgets in the millions.
Most $500K+ households purchase spacious single-family homes, often in exclusive neighborhoods or on large lots.
In Baton Rouge, high earners gravitate to neighborhoods like Bocage and University Club with expansive homes.
In downtown New Orleans, luxury condo developments have attracted wealthy buyers (both local empty-nesters and out-of-towners).
Affluent buyers choose luxury condos for lifestyle convenience trading yards and maintenance for amenities, views, and walkability.
Waterfront and Vacation Properties
Luxury waterfront and vacation properties are another piece of the puzzle.
Nationwide data confirms that second-home purchases are largely a high-income phenomenon.
Nearly nine in ten of those second-home mortgages went to high-income buyers.
Homebuying Behaviors: Upsizing, Downsizing, or Adding Second Homes?
The answer varies by life stage and personal goals, but data from 20182023 reveal several clear trends.
With growing families and rising incomes, they sought more space and luxury features.
This often means selling a large suburban house and moving into a luxury condo or a smaller high-end home.
Many want to be closer to urban amenities, travel more, or simply avoid maintaining a huge property.
So, in 20222023, some of Louisianas high earners indeed went from country estates back to city condos.
Rather than relocating permanently, many high-income Louisianans augmented their housing portfolio.
Within Louisiana, 2020 also saw more purchases of camps and rural retreats as second homes.
This contributes to the phenomenon of multiple homeownership among the rich.
These households are not evenly spread across the state; they cluster in certain metropolitan areas and affluent enclaves.
New Orleans Metro Area
The New Orleans area is a major center of high-income homebuying.
It combines old wealth and new money, and offers the largest inventory of luxury properties in the state.
Nearby parishes like St. Martin or Iberia see occasional estate purchases, but volume is limited.
Bossier Parish has an average income of ~$91K and has seen growth in upscale suburban developments.
Shreveport proper (Caddo Parish) has long-standing wealthy neighborhoods like Southern Trace and Pierremont.
A few other pockets deserve mention.
Executives and engineers moving in led to more home purchases in the $500K+ range in Calcasieu Parish.
Unfortunately, back-to-back hurricanes in 2020 (Laura and Delta) devastated Lake Charles, disrupting its housing market.
Louisiana was somewhat insulated compared to Sunbelt bubble markets, but still saw a slowdown.
Fewer high-end homes were being purchased in those years.
Luxury Segment Growth
The late 2010s saw the luxury segment in Louisiana finally surpassing pre-2008 levels.
Coming out of the Great Recession, Louisianas home prices grew modestly year by year.
Another key difference was homeowner mobility.
In 20082017, high-income homeowners in Louisiana were relatively less mobile.
Many were rebuilding after Katrina or staying put as housing values slowly recovered.
By 20182023, we see greater mobility and multiple homeownership.
Louisianas luxury housing sector is now more robust, with greater inventory and participation than in the early 2010s.
