How to Buy a House in Baton Rouge Without Sweating a Hot Market

Hugging the Mississippi River, Baton Rouge, the capital city of Louisiana with over 300 years of history, embraces a compassionate community, Cajun cuisine, and a Tiger spirit. Whether you want to hear some peppy Zydeco music or visit Sing the River Sculpture, Baton Rouge offers a family-friendly, cool vibe. “The Red Stick” also has many choices for settling down. If you’re ready to purchase your next home in a city that knows how to celebrate Mardi Gras while staying true to its hometown roots, Baton Rouge is waiting for you.

All these qualities, and a growing economy, add up to a hot seller’s market. Between June 2020 and June 2021 the inventory decreased to 1.4 months compared to the previous 3.8 months. During this same timeframe, the median home price rose to $243,300, a 13.2% increase, according to The Greater Baton Rouge Association of Realtors. This median price is still considerably lower than the June 2021 U.S. average of existing homes of $363,300, according to the National Association of Realtors.

This means sellers are getting their asking price or above with few or no concessions, says Amanda Allen, an award-winning Baton Rouge-area real estate agent. Buyers are working harder to find their sweet, southern home in one of the 30 Baton Rouge neighborhoods and parishes that abound.

According to Allen, in the competitive market of Baton Rouge, most houses are selling within five days, considerably less than the national average of 17 days. But this isn’t a problem when you have the right people to help you. We’ve consulted real estate professionals who have the inside information about the current seller’s market in Baton Rouge, and conducted extensive research about the top neighborhoods and the community to arm you with the knowledge you’ll need to buy a house in Baton Rouge.

Your budget in Baton Rouge

A plan that is solid and focused will get you closer to hearing the jingle of those house keys. This starts with strategic planning. Know your home ownership goals, determine how much you can afford, review your budget, and understand how much it costs to buy a house in Baton Rouge. Budgeting for your mortgage payment is only one piece of the puzzle.

Property taxes

Property taxes are relatively low in Louisiana, which enjoys an average property tax rate of 0.53% of the assessed home value. This is the fifth lowest rate compared to any other U.S. state. Baton Rouge is somewhat higher in comparison, with an average 0.610% rate, but is still significantly lower than the average national rate of 1.070%.

This means the property taxes you pay on a $243,295 home in Baton Rouge would cost $1,484 per year compared to $2,603 nationally. The property taxes in Baton Rouge can vary in different locations depending on if your taxes include fire protection, garbage, and street lighting. All homeowners can apply for a homestead exemption, potentially saving $750 to $800 per year with a maximum exemption of $7,500.

Homeowners insurance

Homeowners insurance rates in Baton Rouge depend on the value of your home. They are based on location, your home’s condition, how much coverage you need, and the deductible you’re willing to pay. Louisiana’s Department of Insurance created a consumer guide that explores all these variables and shows how to shop for insurance that best fits your situation.

Flood insurance

Typically, flood insurance isn’t included as part of your regular homeowners insurance policy when you buy a house in Baton Rouge. It can be purchased separately, either through the National Flood Insurance Program (NFIP) or through private insurance. The NFIP program will cover a maximum of $250,000 for the house and $100,000 for contents inside the home. NFIP also covers flooding from hurricanes and other weather events, whereas private policies don’t always offer the same coverage caused by natural disasters. On average, the cost of NFIP flood insurance is $664 per year in Louisiana versus $700 nationally.

Homeowners association fees

Depending on where you buy a house in Baton Rouge you may be part of a homeowners association. Each association sets its own fees. Nationally, they average around $200 to $300 per month, but the average home association fees in Baton Rouge are closer to $50 per month.

Getting a pre-approval letter makes home shopping easier

Before beginning your home search, Allen recommends getting a mortgage pre-approval. It not only gives you an idea of where you stand financially, but also tells the seller that you’re serious about buying their home.

“Having that pre-approval letter is a must. A lot of these offers we’re sending in, if you don’t have a pre-approval, you’re not going to win,” Allen says. “You have to have that ready to go, or proof of funds if you’re paying cash.”

Allen also says she prefers to speak directly to local lenders, as she has found it can help speed up the process.

Now you’re ready to have some fun house hunting

With your pre-approval letter in hand, now it’s time to shop!

“I would say every month is a good month to buy in our area,” says Allen. She explains that many buyers are taking advantage of the low interest rates as of July 2021 and the demand for housing has made the market extremely active.

The housing styles in Baton Rouge range from historic with the first subdivision, Roseland Terrace, established in 1911, to contemporary construction built today. The majority of the housing in Baton Rouge was constructed between 1940 and 1999, with single-family homes dominating the market. Condominiums and townhomes are also popular.

Of course, since the name of the city is Baton Rouge, it’s not surprising to find homes with French architectural influence, each offering different features. For instance, if you’re looking for a perfect place for sipping sweet tea on a calm summer evening, a single-story Acadian home with a long-covered porch could do the trick. Most of the Acadian homes can be found in the Woodstone and Oak Hills areas. Or you could choose a French Creole style with lots of ornate ironwork and a second story balcony view, which was a popular choice in the 1940s and 1950s.

There’s also the stately look of a French Provincial manor with lots of stonework for that castle feeling. New construction of this style can be found at University Club and The Lakes at Highland. And if none of these options appeal to you, there are also traditional, ranch, and cottage styles that feature brick or hardiplank siding. The cottage style is found in the Garden Heights and Southdowns areas. Ranch and traditional styles are typically found in several subdivisions throughout Baton Rouge, such as the Shenandoah area.

Top neighborhoods

Some of the most popular spots to buy a house in Baton Rouge are in the Highland and Shenandoah areas.

The Highland Road area is attractive because it’s close to Louisiana State University. The closer you get to the university itself, generally the more homes cost ─ usually in the $500,000 range. However, the advantage of this area is its proximity to the campus and being able to walk or bike to the university with easy access to the stadium, concerts, or University Lake.

Paul Angrisano, a certified residential appraiser in the Baton Rouge area says, on average, the areas closest to the university are where the greatest stability is for higher housing prices, especially the LSU Lakes area. Opportunities for new developments tend to be further out in Ascension Parish and Zachary areas where land isn’t as expensive as Baton Rouge.

If you travel 20 miles southeast of University Lake, you’ll reach the Shenandoah area where home prices are generally less expensive ─ averaging $255,000 for a single-family, four-bedroom home. This is an established suburban neighborhood with plenty of restaurants nearby, Antioch Boulevard Park, and the highly rated Shenandoah Elementary School.

Prairieville is about 8 miles south of Shenandoah, and Geismar another 6 miles further south. Both areas are popular due to their proximity to Baton Rouge as they are located in Ascension Parish.

“Geismar, the schools are top notch in our parish, we all have great schools but this is the top of the top and we see a lot of people wanting to stay close to the Baton Rouge Parish line,” Allen says.

The cost of a single-family, four-bedroom home in Prairieville averages $270,000, while homes in Geismar average around $280,000.

Thriving job market

The healthy job market is a big draw for people who want to buy a house in Baton Rouge. According to the Baton Rouge Area Economic Summary, the unemployment rate was 6% as of May 2021. This was slightly higher than the U.S. unemployment rate of 5.5%, but considerably lower than the area’s 12.4% unemployment rate in May of 2020.

Contributors to the recovery are the area’s three top employment sectors: government, education, and the utility industry. This includes jobs at the capitol, Louisiana State University, Entergy, and Future Pipe Industries.

“I mean LSU is a city unto itself with 30 or 40,000 people depending on the time of year and what’s going on,” says Angrisano.

Other traits of Baton Rouge: community, culture, and cuisine

Community

Whether it’s neighbors getting together for a cookout, donating to Our Lady of the Lake Children’s Hospital, or lending a hand when disasters strike, the Baton Rouge community is unified.

“People love to share and I would say everybody’s very gracious,” Allen says. “We’ve had a lot of natural disasters ─ flooding, hurricanes ─ and it’s amazing to see how something like that can bring such good, coming together to help their neighbors. That’s what makes us so unique.”

Culture

Baton Rouge also has plenty to do for fun. Perhaps you’ll want to live near the tallest capitol building in the U.S., stroll through the local farmers market, or experience LSU’s Tiger Stadium, one of the largest stadiums in the world! Or you can visit ancient Egypt and stargaze at the planetarium at the Louisiana Art & Science Museum. If you’re an art lover, LSU’s Museum of Art has over 6,500 objects featuring various mediums, including Louisiana silver and landscapes.

You can embrace your animal spirit and say hello to the giraffes, tigers, and a spectacled bear at the Baton Rouge Zoo. If you like the idea of oars gently skimming the river you could also try navigating a paddle board. If you don’t feel like driving there’s several bus tours at Baton Rouge Tours and Red Stick Adventures. When the sun goes down the fun doesn’t stop. You can dance to some live music at the The Texas Club or try your luck at the L’Auberge Casino.

Cuisine

Food is also a big deal in Baton Rouge. (Allen recommends getting a pair of stretchy pants after relocating to the area because it’s that good!) Seafood is plentiful and you can fill up on fried shrimp at Lagniappe or hearty gumbo at Parrains. If you’re in the mood for Italian food, check out Anthony’s. Or if you prefer something more upscale, you won’t want to miss Mansurs on the Boulevard.

Things to keep in mind before your purchase

Amenities that are cool

Hot, humid weather averaging 85 degrees between May and September is non-negotiable in Baton Rouge and so is inadequate air conditioning. Allen recommends if the home is more than 15 years old, that buyers should pay close attention to the air-conditioning system during an inspection, as a new system typically costs between $6,000 and $10,000.

Swimming pools are also popular in Baton Rouge because it’s another way to cool off and can be used 10 months out of the year. In 2021, they’re especially valuable, too, adding an average of $30,829 in South Central area homes, according to Top Agents Insights for 2021. This is an increase of $8,571 from 2020.

Flooding considerations

Baton Rouge is 80 miles northwest of New Orleans via Highway 61. In 2005, when Hurricane Katrina struck New Orleans, many people migrated to Baton Rouge, which didn’t endure the same catastrophic flooding. Residents from New Orleans and other surrounding areas evacuated the Gulf Coast region and found refuge in the welcoming community of Baton Rouge, whose metropolitan area grew from 400,000 to 600,000 people. After evacuees were advised they could safely return, many decided to stay and make Baton Rouge their permanent home.

Since the city of Baton Rouge is considered to be in Hurricane Alley, flooding is something to be aware of when buying a home. Allen says because of this, some parishes, such as Ascension Parish, have enacted a hold for constructing new developments. Only projects that received approval prior to this pause can continue to build.

This combined with the increased cost of building supplies and labor shortages in 2021 has made the market even tighter. Production during the pandemic slowed, but demand increased for remodeling existing homes. The increase of lumber costs between April of 2020 and July of 2021 added an additional $29,833 to the cost of building a single-family home.

Home inspections

These factors make it important to have a professional home inspection when you buy a house in Baton Rouge. Typically it costs about $300 to inspect a 2,000-square-foot home here.

Angrisano notes that sometimes when he is appraising a house he’ll notice something obvious, like termites, and turns to an inspector to better understand the extent of the damage.

“Sometimes we need another professional’s report in order to do an accurate evaluation and we’ll just condition appraisals on those,” he says.

Allen says that even in a competitive market she advises buyers to proceed with caution if a home inspection uncovers multiple flooding events, meaning the house has experienced more than 3 feet of water from flooding and may be a sign that it would flood again.

Homebuyers also should be particularly careful of foundation issues as houses can shift and settle. Allen says she considers major problems like foundation, non-working air conditioning, or electrical issues to be “non-negotiable.” And if those issues aren’t repaired by the seller, Allen says she would advise her buyers not to move forward.

Finding a top buyer’s agent in Baton Rouge

In a super competitive market like Baton Rouge, you want to put your best foot forward to successfully buy your next home. The top 3% of the agents in Baton Rouge have sold 420 homes within 48 days. Their expertise will give you all the information you need to present a winning offer that protects your biggest investment ─ your home!

Now that you have explored the area, know the ins and outs of Baton Rouge’s hot market, the next step is to find a top buyer’s agent who will have you sipping that sweet tea in no time.

Your swimming pool is waiting for you! Reach out and talk to your qualified buyer’s agent today.

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