New Orleans, LA Housing Market Report

The New Orleans housing market is currently experiencing a notable shift toward buyer-friendly conditions as of December 2025. With the median home value sitting at $236,241, the market has seen a 3.51% decrease over the past year. This cooling trend is further evidenced by an increase in active inventory, which has risen to 5,715 units, and a lengthening of the average time a property stays on the market to 103 days. The sale-to-list ratio of 0.97 suggests that buyers are successfully negotiating prices below the original asking amounts, a clear indicator that the frantic pace of previous years has subsided.

Price trends over the last six months reveal a consistent downward trajectory. After peaking slightly in August 2025 at $240,206, values have declined for four consecutive months. This depreciation is likely driven by a combination of increased supply and higher carrying costs, such as insurance and interest rates, which are weighing on local demand. While the sales market cools, the rental market remains remarkably stable, with the median rent rising slightly to $1,627. This divergence suggests that while some residents are hesitating to purchase, the fundamental demand for housing in the Metairie-New Orleans metro area remains intact.

Looking ahead, the outlook for the New Orleans market suggests continued stabilization rather than a rapid rebound. For buyers, the current environment offers a rare window of opportunity to leverage higher inventory levels and longer market times to secure better terms. Sellers, conversely, must be prepared for a more competitive landscape. Success for sellers in 2026 will depend on realistic pricing and ensuring properties are in peak condition to stand out among the growing number of listings. As the market finds its new floor, both parties should keep a close eye on local economic factors and insurance premium trends which continue to influence regional affordability.