T
he Baton Rouge residential real estate market is showing signs of stability, with 2025 expected to mirror last year's trends. According to Tom Cook of Cook, Moore, Davenport and Associates, total dollar volume rose by 2.29% in 2024 to $2.65 billion, following a peak near $3.8 billion in 2021.
Dollar volume dropped by 24.35% from 2022 to 2023, but median home prices experienced a slight increase of 2.28%. Inventory levels surged by over 30%, with Livingston Parish seeing a 15% rise in dollar volume, outpacing East Baton Rouge (5%) and Ascension Parish (12%). New home prices in Ascension jumped by 10.45%.
Cook attributed the decline in new home prices to builders offering more affordable options due to higher interest rates. He noted that Jackson, Mississippi, saw a 28.7% increase in median sale price, while Chattanooga, Tennessee, posted an 18% rise.
The inventory of homes in Baton Rouge increased by over 30%, and the median days on market rose from 19 to 28, a 47.37% increase. However, Cook considers this timeframe manageable. Residential permits in Ascension Parish reached a record low of 579 in 2024, while East Baton Rouge parish saw a 58.49% increase.
Looking ahead, Cook expects interest rates to drop slightly but not significantly impact the market. Uncertainty surrounding tariffs could affect prices, as builders are stockpiling materials due to potential trade restrictions. If tariffs come into effect and aren't modified, Cook predicts price increases. He forecasts that 2025 will be more of the same, with no dramatic changes expected.
