NEW ORLEANS — The real estate market is more of a buyers market today than it was last summer, however industry experts tell us it’s investors who are reaping the rewards.
Real estate experts say the city’s metro area could use at least a 50% increase in affordable rental properties. The demand for rental properties is the reason investors are purchasing multi-family homes across the city.
David Favret, President of the New Orleans Metropolitan Association of REALTORS says investors are seeing the need for rentals and are capitalizing of that need.
“Inventory is increasing in single family homes, we are seeing more investment properties hit the market,” Favret said. “The biggest struggles for buyers right now are the interest rates and affordable insurance.”
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Many people are renting right now because market factors are putting homeownership out of reach.
“The market is very strong for renters so investors see the opportunity to acquire real estate as a means for a money making proposition for sure,” Favret said.
The New Orleans Metropolitan Association of REALTORS found in July this year there were 1,812 new listings on the market. Last year there was 2,162, that’s a 16% decrease, making demand skyrocket.
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Professor Will Bradshaw from Tulane University says employment growth brings renters, thus a greater need for rental properties. The reason property investors are targeting New Orleans.
Professor Bradshaw saying investors are, “Going to put upward pressure on pricing and they’re going to make it harder mum and pop or regular folk to buy a house or a rental property.”
For those looking to buy an investment property, the advice from the experts is to be prepared. They say to have all your financing done ahead of time so you’re ready to spring into action, also make sure you have a good agent.