Rent vs buy in Louisiana
Buying wins in 3 of the 7 cities of 50,000+, renting wins in 2, and 2 are toss-ups, using today's numbers over 7 years.
Renting or buying in Louisiana's cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Shreveport | Buy | buying wins by $21k | year 4 | $145,457 | $1,149 |
Sources: the Zillow Home Value and Observed Rent indexes. Our rent vs buy method produced the verdicts, assuming a 20% down payment and a 7 year period.
The Louisiana view
In Louisiana, buying wins in 3 cities, renting wins in 2 and 2 are toss-ups. Rent in Shreveport runs $1,149 a month, while a typical home costs $145,457. Over 7 years you come out $21k ahead and break even in year 4. Homes in Bossier City cost more at $227,848, while rent jumps to $1,538. As a buyer, that leaves you $15k ahead and breaks even in year 5.
In Baton Rouge, you'll see the math flip. The home price is nearly the same at $228,438, yet rent is only $1,301. Over 7 years, renting puts $10k in your pocket, and buying doesn't reach break even until year 10. Lafayette tips toward renters by $8k, and that lasts until year 9. A home priced at $241,895 and rent of $1,633 in New Orleans sit just $1k apart, so you break even in year 8.
Statewide numbers move your budget in different directions. A typical home sits at $214k, and prices have grown 3.6% a year across the last 10 years. Across the US the rate is 0.94%, while the property tax you pay here is a low 0.55%. Even so, homeowners insurance runs $1,902 a year for you, versus $1,308 nationally. Nationally, 35% of households rent; here it's about 33%, and the median monthly rent of $1,064 sits under the $1,413 US mark.
Our view: in Louisiana, compare your area's rent with home prices before picking one over the other. If you'll stay in a high-rent place long enough to break even, buy; where monthly costs stay low, rent.