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 $1,600 and average occupancy in the 91 to 94 percent range.
The suburban market of Jefferson Parish (Eastbank) has approximately 25 percent of the metro’s multifamily inventory and is reporting monthly rents of $1,300 and average occupancy in the 92 to 94 percent range. The Westbank of Jefferson Parish (west of the Mississippi River) is reporting occupancy in the 91 to 95 percent range with average rents of $1,200 per month.
The highest suburban rents being realized are in West and East St. Tammany Parish (Slidell, Covington, Mandeville and Madisonville), which is north of Lake Pontchartrain. St. Tammany Parish has an inventory of only 8,000 units and represents the majority of the new suburban inventory in the New Orleans market. Monthly rents average $1,395 and reported occupancy is in the 94 to 96 percent range.
Given the availability of developable land in St. Tammany Parish, along with the highes average household income levels in the state, this submarket, along with the I-12 corridor, is the future of the New Orleans metro suburban market.
The most affordable submarkets in the metro are in Orleans Parish, (East New Orleans and Algiers) each having an inventory of approximately 4,000 units, with the average vintage being mid- to late-1970s construction. New Orleans East rents average $1,000 per month, with average occupancy in the 74 to 76 percent range, due to approximately 25 to 30 percent of the inventory being “off-line” while major renovations are currently underway.
The need for affordable housing is also being met in the metropolitan area in the submarket of Algiers, which has an inventory of approximately 4,000 units. Algiers is located across the Mississippi River from the New Orleans CBD and is reporting average occupancy in the 90 to 92 percent range, with rents averaging $1,000 per month.
Sales activity
Since the beginning of 2026, sales activity has been strong with 3,500 units sold. Approximately 50 percent of the conveyances were distressed situations. In January, the portfolio sale of four New Orleans East properties totaling 1,500 units took place and sold for $26.4 million to the LYND Cos. The East also saw the sale of the Willows Apartments (263 units) to the Lee Adrion Co. for $3.8 million. Both transactions will undergo a major renovation and repositioning and put a significant amount of workforce housing units back in commerce.
Other noteworthy sales include the Cleary Point Apartments (104 units) in Metairie to Cypress Communities for $5.7 million and the sale of the 168-unit Aviary on West Napoleon Apartments to Fairfield Realty LLC.
200 Carondelet in Downtown New Orleans was recently sold to VPG Enterprises for $27.2 million. This historic property was originally an office building and was converted to a mixed-income residential community. Another sale worth noting is the bond-financed Parc Fontaine Apartments (704 units) in Algiers from Global Ministries Foundation to The Mary Fund.
New construction
Although interest rates are at a 20-year high, we are seeing a modest amount of construction activity across the metro area. Three noteworthy developments include:
The Waters @ Covington, a 336-unit, garden-style apartment community being developed in St. Tammany Parish in Covington by The STOA Group of Hammond, La.
The property was designed by Fifth Dimension Architecture and is projected to be completed in March 2027. The Waters will consist of one-, two-and three-bedroom floorplans with anticipated rents from $1,472 to $2,176.
The Lauricella Co., in partnership with Felicity Property Co., is developing The Francis, a 251-unit, Class A mid-rise property in Elmwood in Jefferson Parish.
Soon to be breaking ground is The Rivana, a $100 million, 220-unit mixed-income community to be developed in the River District near the New Orleans Ernest N. Morial Convention Center. The property is being developed by Providence Community Housing, along with VPG Enterprises.
In conclusion, interest in multifamily product remains strong. Most owners/investors anticipate little change in interest rates over the next 9 to 12 months and have adjusted their underwriting accordingly. The fundamentals of constrained supply and increasing demand provide a promising outlook going forward.
As always, the pendulum will inevitably swing back to a more robust market.
— By Larry Schedler and Christian Schedler, principals, Larry G. Schedler & Associates Inc./ Cushman & Wakefield Sunbelt Multifamily Advisory Group. This article was originally published in the October 2026 issue of Southeast Real Estate Business.