August 29, 2005 — a day no New Orleanian will forget: Hurricane Katrina.
It has been two decades since the levees were breached and flood waters took over the city’s streets, homes and businesses. It was an event that changed the trajectory of the city of New Orleans.
Twenty years later and the resiliency of New Orleans to always push on is evidenced by the stability of our multifamily market. Through a period of demolition, renovation and rebuilding, the overall market remains stable.
The barriers to entry in the Metro New Orleans multifamily market are significant, and today as in the past, the equilibrium between supply and demand remains in sync. Like other Sun Belt markets, insurance premiums, interest rates and affordability are factors. However, they have not been a deterrent to the viability of the market or interest from investors and the capital markets.
Our inventory of more than 55,000 units (professionally managed) spread out over seven parishes, remains strong. Overall metro occupancy is being reported between 92 to 94 percent with average rents of $1,300 per month.
Parish by parish
Eastern New Orleans and Algiers, which each have an inventory of approximately 4,000 units, offers the most affordable options for renters. Average reported occupancy in Algiers is in the 92 to 94 percent range while New Orleans East reports occupancy around 71 to 73 percent. This is due to the large number of units out of commerce while being renovated. Rental rates in Algiers range from $875 to $1,400, and New Orleans East averages $825 to $1,210.
The East Bank of Jefferson Parish is dominated by three legacy owners. It has been, and continues to be, a submarket of stability. The majority of the inventory is late-1970s to mid-1990s product; however, ownership has continuously upgraded these communities, thereby significantly lowering their effective age. Rental rates range from $1,100 to $1,800. Due to the scarcity of developable land, current reported occupancy is in the 93 to 95 percent range.
The West Bank of Jefferson Parish (south of the Mississippi River), despite having available land, has had only a moderate amount of new development. The lack of new inventory over the years has fostered a very stable submarket. Occupancy is in the 92 to 94 percent range with average rental rates of $1,025 to $1,500.
The future of the Metro New Orleans suburban market lies along the I-12 corridor in St. Tammany Parish, which includes cities Covington, Mandeville, Madisonville and Slidell. This corridor, 24 miles north of New Orleans, boasts the highest household income in the state, along with the greatest availability of developable land. Although once a bedroom community to downtown New Orleans, St. Tammany Parish has seen a significant migration of businesses relocating to the area.
Although the inventory only sits at 8,500 units, it is certainly a submarket that has the attention of developers and investors. It should also be noted that the communities in this submarket represent the newest inventory in the metro area. Occupancy in east and west St. Tammany Parish averages 93 to 95 percent with rents ranging from $1,200 to $2,825.
The highest reported rents in the metro are in the Downtown/ Warehouse District submarket. Most of this inventory is adaptive reuse of office buildings or warehouses. The location in this area provides tenants with proximity to the historic French Quarter, Downtown New Orleans, Caesars Casino and the Caesars Superdome. Occupancy is reported in the 93 to 95 percent range, with rents averaging between $1,750 to $3,750.
Developments underway
Nationally, construction starts are down and Metro New Orleans is no exception. Currently there are four developments underway exceeding 100 units: The Alluvia (260 units) on the East Bank of Jefferson Parish being developed by 1st Lake Properties; Charity Hospital Redevelopment (250 units) by Domain Cos. and L+M Development; The Jackson (205 units) being developed by the Kailas Companies.
The fourth development is The Waters at Promenade (324 units) in Marrero (West Bank of Jefferson Parish). The developer, The STOA Group of Hammond, La., has been extremely active throughout Louisiana, as well as the Sun Belt. The property will offer one-, two- and three-bedroom floor plans with monthly rents going from approximately $1,586 to $2,336. The expected completion of this development is September 2026. B1 Bank is providing construction financing for the project.
Sales picking up
Sales activity has picked up significantly with the following sales to report: The Saulet (703 units) in New Orleans; Brookstone Park (240 units) in Covington; The Marquis (250 units) in New Orleans; Local at Severn (161 units) in Metairie; and Arbor Place (136 units) in Terrytown.
The outlook for metro New Orleans over the next 18 to 24 months holds much promise. The restrained development over the past few years should further strengthen occupancy and rent growth.
The easing we have seen in insurance rates, and hopefully a further reduction in 10-year Treasuries, will certainly lay the track for continued interest from investors and developers.
— By Larry Schedler and Christian Schedler, principals at Larry G. Schedler & Associates/Cushman & Wakefield Sunbelt Multifamily Advisory Group. This article was originally published in the October 2025 issue of Southeast Real Estate Business.