The Baton Rouge real estate market has mostly stabilized after pandemic-related disruptions such as inflation, supply chain delays and interest rate hikes upended sectors over the past two years.
That doesn’t mean there aren’t concerns. This year’s Greater Baton Rouge Association of Realtors’ TRENDS report—which is produced by real estate experts taking a deep dive into each sector—indicates that inflation and the resulting high interest rates remain hot topics within the Capital Region real estate market, especially with regard to the single-family and multifamily residential sectors.
For years, local real estate experts warned that the Capital Region wouldn’t be able to absorb the number of multifamily units under construction. It seems those fears have simmered as the vacancy rate for the multifamily sector dropped below 5% last year, compared to historic norms of 6% to 7%. With vacancies stabilizing, rent increases also eased last year, increasing just 2% as compared to 10% in 2021.
However, not every real estate sector has enough supply to meet demand.
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