Louisiana’s housing market continues to show resilience, even as affordability pressures and sluggish building activity signal deepening challenges for both policymakers and homebuyers. According to Realtor.com’s latest State-by-State Housing Report Card, part of the ongoing Let America Build campaign, the state earned a B−, reflecting a market that remains accessible but is increasingly tested by rising insurance premiums, construction costs, and post-disaster recovery slowdowns.
The state’s score places it firmly in the middle of national rankings—an indicator that Louisiana has advantages worth protecting, but also emerging vulnerabilities that demand new policy momentum. These findings raise a critical question: Can Governor Jeff Landry build on existing strengths to accelerate new home development and preserve affordability?
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Louisiana’s challenges exist within a nationwide construction slowdown that has drawn federal-level attention. President Donald Trump recently criticized major builders for failing to increase housing supply fast enough.
In an early October Truth Social post, Trump accused large homebuilders of withholding inventory to drive up prices—comparing them to global oil cartels.
“They’re my friends ... but now, they can get Financing, and they have to start building Homes. They’re sitting on 2 Million empty lots, A RECORD,” Trump wrote. He urged Fannie Mae and Freddie Mac to “get Big Homebuilders going” to “restore the American Dream.”
The remark underscores pressure across states—including Louisiana—to boost development and ease supply constraints.
Louisiana’s overall score of 61.3 reflects a market with manageable price points.
These numbers indicate many residents can still purchase homes, though rising insurance premiums following years of hurricanes, floods, and severe weather continue to shrink budgets.
Affordability remains one of the state’s strongest competitive advantages, especially compared with high-cost coastal markets. But industry analysts warn that stability could erode if insurance costs continue climbing faster than wages.
Homebuilding in Louisiana is steady but not accelerating enough to meet long-term demand. The state accounted for roughly 1% of all new permits nationwide—proportionate to its population but not expanding beyond that.
The new construction premium—the cost difference between new builds and existing homes—was measured at 11.4%, a manageable gap that suggests buyers still value new builds despite rising material and labor costs.
But the broader concern remains: without rapid expansion, the state risks falling behind the pace of population needs, especially as surrounding southern states continue to grow.
Realtor.com’s New Construction Insights report again positioned the South as the most active and affordable region for new housing in the country.
Louisiana benefits from the South’s overall construction-friendly environment: land availability, competitive labor costs, and consistent demand. But the state’s unique challenges—storm recovery timelines, growing insurance risk, and financing hurdles—continue to restrain growth compared to faster-moving states like Texas or Florida.
National Association of Realtors® executive Shannon McGahn highlighted the urgency of boosting supply:
“America is short more than 4.7 million homes, and every new home built helps close that gap while fueling local economies.”
She added that “Expanding housing supply creates jobs, supports small businesses, and affords families the opportunity to build generational wealth.”
While Governor Jeff Landry has not yet released a comprehensive statewide homebuilding strategy, his administration has backed projects through the Louisiana Housing Corporation (LHC), which is gradually expanding affordable housing capacity.
Faubourg Lafitte Phase VII – New Orleans
City Square 162 Phase II (Winn-Dixie Phase II)
These projects reflect incremental progress, but not yet the kind of broad-scale expansion needed to offset long-term shortages.
Housing analysts say the state must address three critical areas to maintain affordability and accelerate growth:
Louisiana has the land, demand, and price accessibility to remain competitive—but emerging pressures could shift the balance if supply does not increase.
With the semiquincentennial approaching and national housing shortages intensifying, the state’s next moves under Governor Landry will determine whether Louisiana gains momentum or risks sliding backward.
Originally reported by The Realtor. Com.
