In a July analysis, where researchers evaluated over 50 metro areas in the United States, New Orleans ranked No. 1 as the easiest city to build apartments.
Conducted by Hoyt Advisory Services, the National Multifamily Housing Council and the National Apartment Association made the argument that the United States needs to double-down on supplying housing. Based on current trends, the United States will need to build at least 4.6 million apartments by 2030 to keep up with skyrocketing metro populations.
Based on current trends, the New Orleans metro area will add 7,000 apartments by 2030, which, compared to other metros, is a slow increase in multifamily homes.
In particular to New Orleans, the analyst noted that new rental households will be geared towards those who are 35 and older, but will generally have low income. In fact, a third of renters in New Orleans, around 50,000 people, earn less than $20,000/year.
Hoyt Advisory found that New Orleans renters, along with those in Los Angeles, New York, and Orlando, are spending more than 35 percent of their income on rent.
Out of the 50 metro areas in the study, New Orleans has an index score of -5.9. The score considered any regulatory obstructions that would halt the proposal and development of new apartment complexes. Honolulu, Hawaii, scored the highest at 19.5. The average metro area scored a 2.
While apartment housing may be on the rise, so is the rent. New Orleans ranked as the city with highest rent hikes over the last six months.
- U.S. Apartment Demand - A forward Look [weareapartments.org]
- New Orleans Metro Area [Weareapartments.org]
- New Orleans ranks as city with highest rent hike over the past six months [Curbed NOLA]