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ew Orleans (WVUE) - After years of struggling with skyrocketing homeowners insurance premiums, relief may finally be on the horizon, but it won't come quickly. The ongoing crisis is also affecting the New Orleans real estate market.

    "You can't buy or sell a house if you can't afford the insurance," said Ron Henderson, Louisiana's deputy commissioner of insurance. He emphasized that the insurance crisis is the main reason for the stagnant real estate market.

    The crisis began when over 30 insurance companies either left the state or collapsed following the devastating 2020 and 2021 hurricane seasons. Henderson pointed to building stronger homes and fortifying roofs as key strategies for lowering premiums, but warned it may take five years for meaningful relief.

    Since Hurricane Ida, more than $22 billion worth of roofs have been installed in Louisiana, but many are not fortified. Homeowners with newer roofs that aren't fortified can either retrofit their roof or obtain a wind mitigation survey to qualify for discounts or incentives. However, there's no guarantee insurance rates will decrease.

    High insurance costs are forcing some homeowners to make difficult decisions, such as selling their homes due to unaffordable premiums. Even those who can afford insurance are hesitant to move, further stalling the market. Some property owners have taken drastic measures by dropping their insurance altogether.

    Henderson acknowledged the tough position many homeowners face and expressed optimism about new companies entering the Louisiana market. Five to seven insurers are currently going through the application process, which he hopes will bring more options in the near future.