If you're a New Orleans real estate investor, you're probably crying out for a return to the good old days. After all, last year saw both rents and house prices drop considerably across the area, reversing the gains of previous years.
While we cannot tell you what will happen in 2024, we can offer our expert insights into the local market. If you're wondering what to do with your portfolio in the year ahead, check out our roundup of emerging real estate trends set to shape the market.
A Small Revival for Commercial Real Estate
While housing market trends might offer more of the same for Nola in 2024, the same cannot be said for commercial real estate. The return-to-office movement is finally gathering pace, with large numbers of America's biggest employers ordering workers back to their desks at the tail-end of 2023.
While we will likely never see anything like pre-pandemic levels of office occupation, analysts are confident that rates for high-quality, well-located commercial space will grow healthily in the year ahead. If you own downtown office space, now could be the time to start advertising.
A Buyer's Market in New Orleans
While many are hoping that falling mortgage rates will prove a boon to investors in 2024, it seems clear that New Orleans' fortunes will depend on who is buying and selling. Experts recently ranked New Orleans dead last on its list of the hottest and coldest real estate markets in 2024.
Demand will not be buoyed by the Fed cutting rates, and house prices are predicted to fall even more than they did last year. It's a house hunter's paradise in New Orleans once again.
Improving Rental Yields
However, there is some room for optimism. Tight housing supply across the city - especially in high-demand areas such as the Garden District, CBD, and Mid-City, means that rents will likely climb.
Young professionals continue to move to the city, meaning that investors sitting on centrally-located rentals with good amenities stand to benefit the most. Now is the time to get your rental strategy in place and put together a tenant screening process that works for your portfolio.
A Cautious Approach
Much like 2023, we anticipate that investors will be taking fewer risks in 2024. Although inflationary pressures will ease, it will take a while for investors to regain their confidence.
On top of this, there is no telling what will happen in the wider world - could another geopolitical crisis dampen demand even further? While now is a good time to be cautious, keep in mind that when everyone else is too scared to invest, there can be some great bargains to be had.
We Help You Take Advantage of Real Estate Trends
Understanding real estate trends will help you create a more proactive strategy for your portfolio, which is key to long-term profitability. For this, we've got you covered.
At PMI New Orleans, we leverage our experts to help you take advantage of trends you cannot control. Get in touch to find out exactly how we can help you.
