NEW ORLEANS — Today’s real estate market is more of a buyer’s market than it was last summer, but industry experts say it’s the investors who are reaping the rewards.
Real estate experts say affordable rental properties could increase by at least 50% in the city’s metropolitan areas. Demand for rental properties is the reason investors buy apartments in the city.
David Favret, president of the New Orleans Metropolitan Association of REALTORS, said investors recognize the need to rent and are capitalizing on that need.
“Single-family home inventories are rising and more investment properties are hitting the market. Right now, the biggest struggles for buyers are interest rates and affordable insurance.”
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Many people are now renting as market factors have made homeownership unaffordable.
“The market is so strong for renters that investors see the opportunity to acquire property as a sure way to make money,” said Favret.
The New Orleans Association of Urban Realtors found 1,812 new properties on the market this July. Last year it was 2,162, a decrease of 16% and demand is soaring.
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Professor Will Bradshaw of Tulane University says the need for rental properties is increasing as more people rent due to increased employment. Why Real Estate Investors Target New Orleans.
Professor Bradshaw says investors are “trying to put upward pressure on pricing, which will make it harder to buy homes and rental properties.”
Expert advice is available for those considering buying an investment property. They say to get all the funding done up front so you’re ready to take action. Also, make sure you have a good agent.