Demand is lower, but prices aren’t.
That about sums up the real estate market right now — both residential and commercial.
According to the National Association of Realtors’ Commercial Real Estate Report for the New Orleans/Metairie Metro Area, from first-quarter 2024 to first-quarter 2025, demand for office, multifamily, retail and industrial spaces in the metro area was weaker here than in other metros nationwide, yet prices for all but office spaces rose faster than the nationwide averages.
In the New Orleans Metro, office vacancy rates climbed from 6.8% to 7.5% while avgerage market rents remained at $21 per square foot. In multifamily, vacancy rates rose from 8.1% to 8.7% and average rents per unit increased from $1,288 to $1,308.
Vacancy rates in retail also rose from 3% to 3.7%, along with average market rents — $22 to $23 per square foot. And in industrial, vacancy rates rose from 3.5% to 3.9% while market rents per square foot increased from $10 to $11. Total sales volume for industrial saw a deep decline — from $13.68 million in the first quarter of 2024 to $5.35 million in the first quarter of 2025.
On the residential side, according to the NOMAR Market Local Market Update for the New Orleans Metro, from July 2024 to July 2025, new listings decreased 5.4%, and average days on market increased from 61 to 68. Average sales prices, however, were up 4.2% (from $348,167 to $362,892).
With nervousness around the economy, paired with increased prices on building supplies and a continuing insurance crisis, the real estate industry is being hit on all fronts. Yet, this year’s group of industry influencers remains cautiously optimistic and focused on helping individuals and businesses continue to move forward toward their goals.
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