The Lafayette Parish is one of the hottest real estate markets in the state of Louisiana. Since 2010, its population increased by more than 9%. This was much faster than the state's population growth of 2.7%.
Local residents cite many reasons why they live in Lafayette. It is a business-friendly city with lots of employment opportunities. Lafayette is rich in culture, history, and entertainment.
The city's university keeps the city alive and affords businesses with highly educated workers. Many of these students and graduates need temporary or permanent housing.
Read on for a comprehensive guide to the Lafayette real estate market. Explore topics such as shopping for homes for sale in Lafayette and important real estate trends.
Local Factors
Before buying an investment property or relocating your family, it is important to understand local factors. Considerations need to be made for the local economy, schools, crime, and more.
The Lafayette Economic Development Authority (LEDA) is making the city attractive to businesses and investors. Many businesses are relocating or expanding operations in Lafayette.
The unemployment rate in the Lafayette Metro area is 3.2%. The city has added jobs over the past year. Favorable employment statistics have a correlating positive impact on other metrics such as crime, home prices, business revenue, and more.
The city is home to the University of Louisiana (UL) at Lafayette. This means that many college students look for apartments and single-family homes after graduation. Businesses enjoy hiring highly qualified grads from UL Lafayette.
Lafayette is rich in culture and history. The city boasts entertainment, nightlife, and southern cuisine that makes living here more enjoyable.
Supply and Demand
The Lafayette housing market resembles the rest of the United States. Due to economic pressures related to interest rates, home sales have slowed down.
Fewer people want to move because they have a low interest rate. For many, there is little sense in exchanging a sub-4% mortgage rate for one closer to 8%.
This means there are fewer homes going up for sale. With less supply, Lafayette real estate is still a seller's market.
Sellers can remain patient and wait for an offer that meets their expectations. As a result, home prices remain near record highs.
In particular, first-time homebuyers struggle with the current housing market. They do not have an existing asset to leverage its equity. This forces them into the rental market, where they have no choice but to pay high monthly rents.
The lack of home sales is good for landlords. They have greater demand and can increase revenues with rising rents.
Your Guide to the Lafayette Real Estate Market
You are now ready to shop for homes and apartments for sale in Lafayette. Looking forward, Lafayette's real estate growth is projected to continue. The parish's population continues to rise, and macroeconomic factors remain strong.
PMI Integrity Properties has the expertise to help you find residential or investment properties in the greater Lafayette area. If you need help navigating the Lafayette real estate market, contact us at PMI Integrity Properties to speak with an experienced professional.
