Multifamily

Over the past two decades, the multifamily sector, both nationally and locally, has had relatively calm seas, expanding demand, low predictable interest rates and, in the case of metropolitan New Orleans, significant barriers to entry. As a result, the headwinds that New Orleans has faced have been primarily due to national factors (interest rates, inflation) as opposed to any significant local factors. The metro New Orleans market is holding up surprisingly well despite some challenges. Demand is strong, new supply is restrained and although rent growth has been flat, occupancy remains relatively stable.  Metro New Orleans is reporting overall occupancy in the 91 to 95 percent range. Average rents are $1,325 per month, with the highest being reported in Downtown New Orleans and St. Tammany Parish. It should be noted that the actual occupancy is at least 100 basis points higher as the metro has a significant number of units off-line as they undergo major renovations.  The highest reported rents are in the Central Business District (CBD)/Warehouse District, which consists of predominately mid- and high-rise developments. Rents average $1,985 per month, with reported occupancy in the 92 to 94 percent range. The Mid-City market is reporting average monthly rents of …