New Orleans homeowners are spending nearly a third of their income on mortgages

New Orleans homeowners are increasingly burdened by housing costs, spending nearly a third of their income on mortgages, making the city one of the most house-poor in the nation. Even with home values below the national average, New Orleans ranks third in the country for the share of income devoted to housing, outpacing cities like Los Angeles, Miami, and Honolulu. Rising insurance premiums and higher interest rates have slowed the housing market and limited homeowners’ ability to build equity. Between 2020 and 2024, the share of the median household’s income going toward housing climbed past 28 percent. As monthly costs grow faster than incomes, the idea of homeownership as a reliable wealth-building tool is increasingly in doubt, particularly for new buyers who face rising expenses with little expectation of price appreciation. Ken Johnson, Endowed Chair of Real Estate and Professor of Finance at the University of Mississippi, joins Newell to discuss it.