This income bracket encompasses the vast majority of Louisianas homebuyers and thus reflects broader market trends.
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.
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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.
The number of homes sold below $149,000 dropped over 8% from 2023 to 2024.
For this income group, the sweet spot has been modest single-family houses, often 1,5002,000 sq.
ft., with enough space for a family but still within budget.
New Construction vs. are plentiful in the affordable range.
Three-bedroom, two-bath layouts are standard.
Through 20182023, New Orleans saw strong demand and rising prices until the pandemic boom cooled.
Baton Rouge Area
Baton Rouge has been relatively stable and steady in homebuying trends.
Its the state capital and home to LSU, with many government and university jobs anchoring the economy.
Buyers in this area often seek suburban single-family homes in family-friendly communities.
Acadiana (Lafayette & Lake Charles regions)
South-central and southwestern Louisiana had a rollercoaster 20182023.
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.
Regions like Shreveport-Bossier have struggled with economic stagnation in the 2010s, resulting in flat or declining population.
Yet interestingly, by 20232024 some of these areas showed resilience in home sales.
By 2023, Shreveport/Bossier had roughly 5+ months of inventory, higher than the states southern metros.
This gave under-$250K buyers up north more negotiating power.
Regional Price Differences
Across the state, regional price differences are notable.
Thus, what a <$250K income household can buy varies widely by location.
Buyer Profiles: Demographics and Buying Motivations
Who are the homebuyers in Louisianas under-$250K cohort?
In a word: diverse.
Age Trends
Homebuyers have skewed older in recent years.
Repeat buyers median age climbed to 61.
Louisiana likely reflects this aging trend.
Others are relocating to be closer to family or health care.
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.
Homebuying in this income bracket includes all races, but disparities are notable.
Income and Financing
By definition, were 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.
This reflects that homeownership is increasingly achievable mainly for those substantially above median income.
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.
Buying Motivations
Each sub-group of this diverse cohort has different reasons for buying.
On the other end, downsizers are usually older empty-nesters.
Relocations are another factor.
Others are out-of-state transplants moving into Louisiana, bringing perhaps new demand.
Chief among them were mortgage interest rates, housing affordability, and the supply (inventory) of homes.
Many qualified Louisiana buyers locked in 30-year loans below 3% interest something almost unimaginable a decade prior.
However, this environment quickly changed.
In October 2023, rates briefly hit around 8%, a 24-year high.
Thus, interest rates dictated demand.
20202021 saw a frenzy of buying (and refinancing) as families rushed to capitalize on cheap loans.
Even before the rate spikes, home prices themselves were climbing in Louisiana.
However, Louisianas price growth was more modest than the national average.
Inventory Constraints and Market Competition
Another major factor was the supply of homes for sale.
Louisianas 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.
However, the quality of inventory was an issue.
From 20082017, homeownership rates in Louisiana were recovering slowly from post-Hurricane Katrina lows and the national foreclosure crisis.
By contrast, 20182023 saw homeownership demand roar back when conditions allowed (low rates).
Millennials who had delayed buying finally started entering the market en masse around 20152020.
It wasnt until the mid-2010s that Louisianas home prices surpassed their mid-2000s peak.
Fast forward to 20182023: prices were generally higher and rose faster (especially 202021).
Interest Rates and Mortgage Access
In 2008, 30-year rates were ~6.5%.
So the 20082017 buyers enjoyed generally declining interest rates (aside from a spike around 20132014).
A big difference was mortgage credit availability.
After the subprime crisis, lenders tightened standards significantly.
In conclusion, households under $250K in 20182023 faced a very different landscape than those in 20082017.
They also had to deal with tighter supply and higher home prices relative to income.
