House Rentals in High Demand in New Orleans
House rentals are in high demand in New Orleans, pushing rents to levels that require renters to spend much of their monthly income for rent, according to a study conducted by the Greater New Orleans Community Data Center.
Using data from the U.S. Census Bureau, the center also found that renters in New Orleans spent more for rent and utility bills than renters in the other cities studied in 2008, including Las Vegas, Baltimore, New York City, Milwaukee, Memphis, Phoenix and San Antonio.
Out of all New Orleans renters, 41 percent spent at least half of their pre-tax salaries for their rental housing.
In Jefferson Parish and Saint Tammany, 27 percent of households spent 50 percent of their income for rent.
Last year, the median monthly rent in Saint Tammany was $982. The median in New Orleans was $908 and the median in Jefferson was $854.
According to affordable housing advocates, the burden of paying rental costs in New Orleans is heavier because of increases in costs of living in the metro area.
Landlords in New Orleans also explained that they have to increase their rents because they spent high costs in building and maintaining their house rentals after the Katrina disaster.
Homeowners in New Orleans also bear heavier housing burdens than other cities because of increases in the costs of insurance premiums, taxes and utilities in the metro area.
In Saint Tammany, 27 percent of homeowners spent more than 33 percent of their monthly income on housing costs while Jefferson homeowners spent 26 percent – lower than the nationwide average of 31 percent.
Among lower-income New Orleans homeowners, 36 percent spent more than 33 percent of their income on housing costs. Low-income homeowners particularly have been suffering because 81 percent of them spent more than 33 percent of their monthly income on housing costs.
Housing advocates cite the difficulties of the low- and lower-income families in paying their monthly home loan payments as major reasons for foreclosures in the city. They said that post-Katrina salaries have not increased to keep pace with the increase in rents.
According to the Data Center, the rise in New Orleans housing costs to unaffordable levels is a clear indicator that the city needs to step up its affordable housing programs.
But the State Bond Commission decided to stop subsidizing affordable construction in the city in September until a comprehensive market study on house rentals and affordable housing is completed.
