Rents should drop in Baton Rouge, but when?
Several market forces should drive down rents in the Baton Rouge area in the coming months. Flooded residents are completing repairs to their homes, flooded apartment complexes are coming back online and yearlong leases signed after the flood last year are ending.
But a clear picture of when that will happen, and by how much, remains unknown.
“Rents are still high. We’re still seeing growth,” says Chad Rigby of Stream Realty. “The new supply appears to be being absorbed right now. … We’re heading down toward equilibrium.”
Because of the vast number of houses that flooded, Rigby says it’s likely the apartment market could see a sustained shift in demand and prices, if even a few thousand people don’t get back in their homes and choose to become full-time renters instead. Plus, if Hurricane Harvey’s impact on the Houston area shifts petrochemical demand to Baton Rouge, that could provide a temporary boost to demand here, he adds.