T
he multifamily real estate market in Baton Rouge is experiencing a slowdown after several years of strong growth. According to industry experts, this shift can be attributed to slower absorption rates and an increase in new apartment construction. The local vacancy rate has risen from 5.36% to 7.46% over the past year, while rents have increased by nearly 5% to reach $1.31 per square foot.

    A significant contributor to the rising vacancy rate is the influx of new units entering the market. In 2024 alone, more than 2,000 new units were delivered, and another 1,793 are currently under construction and expected to be completed this year or next. This wave of new supply marks the latest phase in a decade-long construction boom that has seen 12,934 units delivered since 2015.

    Job growth remains crucial for absorbing new supply, but Baton Rouge's job market has largely recovered from the COVID-19 pandemic-induced decline in 2020. Unemployment is now at a historic low of 4%, although total employment dipped slightly year over year by the end of 2024.