Louisiana Housing: Why It’s Still a Bargain Despite Rising Rates

SHREVEPORT, LA

Home prices are up, interest rates have climbed, and economic uncertainty continues to cloud the housing market. Yet despite all of these pressures, Louisiana, particularly Northwest Louisiana, remains one of the most affordable places to buy a home in the country. 

Get our free mobile app

Scott Hughes of the Northwest Louisiana Association of Realtors recently told KEEL News what buyers, sellers, and builders are facing, and why Shreveport-Bossier’s market is still strong compared to national trends. 

Home Prices and Interest Rates Are Reshaping Buyer Expectations 

Over the past five or six years, the average home price has climbed sharply. What used to cost $150,000 is now often in the $240,000 to $250,000 range. Factor in mortgage rates hovering between 6% and 7%, and buyers are finding it harder to afford the homes they want. 

Still, Hughes said historical perspective is important. "If you look at interest rates over the last 100 years, 6% to 7% is normal," he explained. "It’s just that this generation grew up with artificially low rates. My parents bought their home at 13% back in the Carter years." 

Even with higher rates, Hughes emphasized that owning a home still beats renting. "Rent is 100% interest," he said. "You’re building no equity at all." 

Builders Focusing on Higher-End Homes 

Builders face their own challenges. With rising construction costs and tight profit margins, it is much less common today for builders to construct homes in the $150,000 to $200,000 range. Instead, most are focusing on higher-end homes where they can maintain profitability. 

Affordable housing, by traditional American standards, has become harder to find, not just because of prices but because it simply isn’t being built at the same pace. 

Louisiana Still Offers Some of the Best Housing Prices 

Compared to much of the country, Louisiana remains in a strong position. "Our state is still the third most affordable in America," Hughes said. "And locally, we are way better off than major markets like Dallas, where the average home is now $450,000, or California, where you’ll pay over a million for an 1,800-square-foot house." 

He added that while some local buyers feel squeezed, on the national scale, Northwest Louisiana continues to offer tremendous value. 

Low Mortgage Rates Keep Homeowners From Selling 

One trend impacting inventory is the large number of homeowners who refinanced a few years ago at record-low mortgage rates. Hughes pointed out that many locals, himself included, locked in 15-year loans at rates below 3%. 

"There’s just no incentive to move," he said. "You can’t replace a 2.3% mortgage today. That’s why a lot of bigger homes aren’t coming onto the market, even as people become empty nesters." 

Still, Hughes shared some good news: local inventory levels have started rising. "We’re seeing more homes come available, which gives buyers more choices," he said. "And that’s always a good thing for the market."