By Greg LaRose – May 23, 2014
The latest seasonal report on apartment occupancy shows renters have absorbed nearly all the available inventory in almost every corner of the New Orleans market. That’s allowing landlords to keep lease rates at an all-time high.
The spring edition of the Greater New Orleans Multi-Family Report keeps tabs on more than 300 rental communities and lists the average rent for an apartment in the region at $909. Total occupancy across the eight markets covered in the report was 94 percent.
The most expensive units and most popular are in the Historic Center — French Quarter, Warehouse District, St. Charles Avenue, Mid-City and downtown — where the average rent was $1,379 and occupancy was at 96 percent. Compared with rates in the fall, prices in the submarket went up $50 per month.
The lowest rates were in Eastern New Orleans, where the average rent was $709, nearly unchanged for the fall. The inventory in that submarket is 91 percent occupied.
The only submarket in the New Orleans area with an occupancy rate less than 90 percent was Kenner, where 84 percent of its units are rented at an average of $830 per month. Occupancy there was up from 81 percent at the same time last year.
The report notes that 1,021 units are under construction at five developments in the metropolitan area, including 264 at Bella Ridge in Harahan, 206 at The Paramount in South Market District and another 96 at the 144 Elk development. In downtown New Orleans alone, another 848 apartments will come online in the next 12 to 18 months, providing a 22 percent increase in inventory.
The Greater New Orleans Multi-Family Report is a collaborative effort from The Multi-Family Advisory Group, an apartment industry consultant; Madderra & Cazalot, the mortgage banking and real estate advisory firm; and Larry G. Schedler & Associates, a multifamily property brokerage.