Is It a Buyer’s Market in Baton Rouge?

1. Market Conditions & Inventory

• Rising Inventory: As of May 2025, Baton Rouge had 3,347 active listings—an 11.2% increase year-over-year—with around 4.5 months of supply, up 9.8%.

• Sales Slowing Slightly: In May, 245 homes sold, a 9.9% drop year-over-year, spending a median of 27 days on market, compared to 38 days the year before.

• Pricing Trends: The median sale price rose sharply to around $250,000, up 33.6% year-over-year. Meanwhile, the median listing price has fallen roughly 13.2%, suggesting fewer new high-end listings being added while existing ones sell strong.

Bottom line: The market is leaning slightly toward buyers, thanks to rising inventory and slower sales—even though price growth and limited supply still give sellers some control.

2. Affordability Snapshot

• Home prices: Baton Rouge’s median home price (~$250K) is about 43% below the national median, with a cost of living approximately 8% lower than the U.S. average.

• Statewide affordability: Louisiana’s affordability index dropped by 4.2% over the last year and is now 29% less affordable than it was in 2021.

• Single-income buyers: Louisiana remains relatively affordable, with many homes ranging from $270K–$400K and average mortgage payments under $2,000/month.

While Baton Rouge remains more affordable than many other cities, rising prices and insurance costs are tightening the window for first-time and budget-conscious buyers.

3. The Insurance Factor: A New Challenge

Rising homeowners insurance premiums are now a major factor affecting affordability.

Baton Rouge Insurance Snapshot

• Average premiums range from $2,000 to $3,700 per year, or $170–$310/month.

• These figures are well above the national average, driven by increased storm risk, reinsurance costs, and the age of many homes.

Statewide Insurance Pressure

• Louisiana homeowners could see a 27% jump in premiums in 2025.

• In some cases, costs may soar up to $14,000 annually, especially in high-risk zones or for older homes.

• Flood, wind, and roof-related surcharges are increasingly common and necessary for full coverage.

This surge in premiums is already impacting the market, with some buyers walking away from deals due to unaffordable insurance quotes.

4. Verdict: Buyer’s Market?

• Rising inventory and longer days on market give buyers more negotiating power.

• But home prices are up over 30%, and insurance premiums are eating into affordability.

• Conclusion:

  • Short-term: It’s a mild buyer’s market—but only for those who are informed, prepared, and flexible.

  • Long-term: Insurance pressure and affordability concerns could soon shift the market back in favor of sellers.

5. Tips for Buyers in This Market

1. Start insurance quotes early — before submitting offers.

2. Look at newer homes — often built to modern codes, which can lower premiums.

3. Use negotiation leverage — especially on listings sitting longer than average.

4. Budget for total monthly costs — not just mortgage, but insurance and potential flood coverage.

5. Explore local incentives — grants or retrofit programs may reduce your insurance costs.

📊 Baton Rouge Real Estate At-a-Glance:

✅ Final Takeaway:

Yes, Baton Rouge is currently leaning toward a buyer’s market—but it’s a narrow window. If you’re looking to buy, act strategically, shop your insurance early, and take advantage of rising inventory while it lasts. If you are looking to buy or sell, give me a call, I would love to help you.