Baton Rouge’s housing market is among the highest-depreciating in the country, according to a recent analysis of 349 metropolitan statistical areas by Veros Real Estate Solutions, which also found Louisiana is home to more depreciating housing markets than any other state.
The analysis reveals the bottom 10 MSAs, or those with home prices that will depreciate the most in the next 12 months. Five of Louisiana’s nine MSAs were included in the list, meaning half of the country’s worst-ranking areas are located in the state.
Overall, Baton Rouge ranks fourth-worst in the U.S., with a projected 0.8% depreciation in the next year. The metro area only fares better than fellow Louisiana cities Alexandria (-1.9%) and Hammond (-1.2%), as well as Danville, Illinois (-1.1%). It trails slightly behind Lafayette and Shreveport-Bossier City (both -0.7%).
Industry experts attribute Louisiana’s poor market performance to high unemployment and the lingering effects of a recession that ultimately left 23,000 residents jobless. Because the national recession was slower to hit Louisiana than other states, it was also slower to leave—not doing so until late 2017, according to an LSU report.
Job growth is equally slow. In 2010, Louisiana’s unemployment rate was 7.7%—lower than both the U.S. (9.9%) and Texas (8.3%). But this past March, state unemployment was at 4.7%, while both Texas and the country dropped to 3.8%.
