Why do people think New Orleans is expensive, COL-wise? (Jefferson: apartment, rent)

[whatisthedealwith]

Really I am curious. I am from NYC, and now live in the LA area. I am used to paying about $2k a month for my mortgage, and when I was renting, I paid a bit more than that. I am in New Orleans a lot for work, and I considered buying a condo. I found some great places in the $300K (or a bit less) range that would have worked fantastically. These same places would have been double if not triple their cost in most major US cities (think NYC, DC, LA, SF, Boston, etc.)

I read the threads on here and see how people complain about COL. I also read stats that puts NOLa right under the national average. For the entertainment options available, I think the city affords one a great bargain.

So, I am curious-- why does everyone say how expensive it is?

[rburnett]

It's not expensive compared to larger cities like NYC, Boston and LA, but its relatively expensive when compared to other southern cities with similar populations. New Orleans population is ~375,000. NYC is ~8,000,000. You have to compare apples to apples.

Also, insurance is much more expensive here (since Katrina) compared to other areas on the Gulf Coast.

[whatisthedealwith]

I can see that.. I guess I always think of New Orleans as being in the same league with some larger cities. For example, DC has a bigger population in the actual city limits, but is smaller in area and approaching three times the cost in some categories-- pre-Katrina, the cities were within striking distance in terms of population.

I lived in Santa Fe for a year while working on a film-- MUCH smaller population, much higher COL, esp in terms of housing. And Santa Fe does not really feel like a city (at least to me). New Orleans *feels* urban and bigger than it is. Personally, I think its a bargain. But my perspective is skewed by what I am used to.

[moiraesfate]

Originally Posted by whatisthedealwith

Really I am curious. I am from NYC, and now live in the LA area. I am used to paying about $2k a month for my mortgage, and when I was renting, I paid a bit more than that. I am in New Orleans a lot for work, and I considered buying a condo. I found some great places in the $300K (or a bit less) range that would have worked fantastically. These same places would have been double if not triple their cost in most major US cities (think NYC, DC, LA, SF, Boston, etc.)

I read the threads on here and see how people complain about COL. I also read stats that puts NOLa right under the national average. For the entertainment options available, I think the city affords one a great bargain.

So, I am curious-- why does everyone say how expensive it is?

Because probably 90% of the city can't afford 300k. That's cheap in NYC. Here, where most people make between $10 and $15 an hour, 300k is one heck of alot of money. Then factor in the insane cost of insurance (flood insurance alone can be almost as much as a small mortgage) and it's extremely expensive to live here. If you are lucky enough to afford $2000 a month without it stretching the bank, then I envy you and I wish I had your job. Between us, my husband and I make $55,000 and we can't afford 300k.

As well, when you do the research, NOLA has a lower standard of living than almost any other area of the country except for the north east.

[alsidw]

When you compare New Orleans to Jefferson Parish, St. Bernard Parish, Plaquemine Parish, St. Tammany Parish, etc etc. The cost of housing and utilities and insurance is higher.

[aab7855]

For the South and for the salaries we have to live with, it's pretty expensive.

[whatisthedealwith]

Originally Posted by moiraesfate

Because probably 90% of the city can't afford 300k. That's cheap in NYC. Here, where most people make between $10 and $15 an hour, 300k is one heck of alot of money. Then factor in the insane cost of insurance (flood insurance alone can be almost as much as a small mortgage) and it's extremely expensive to live here. If you are lucky enough to afford $2000 a month without it stretching the bank, then I envy you and I wish I had your job. Between us, my husband and I make $55,000 and we can't afford 300k.

As well, when you do the research, NOLA has a lower standard of living than almost any other area of the country except for the north east.

Wow, I had no idea household incomes were so low. I had read on another thread that wages were better in the area than other parts of the south.

[confusedasusual]

I think the stats are only estimates and are inaccurate-- according to them, my HH income is almost 4X the average. If that were true, I would be living in a mansion on St. Charles Ave.

[moiraesfate]

Originally Posted by whatisthedealwith

Wow, I had no idea household incomes were so low. I had read on another thread that wages were better in the area than other parts of the south.

Honestly, that may be but I doubt it. We have been trying to find jobs somewhere else in the country for a couple years now but no luck. Wages here are horrible. Before Katrina, things like rent were really really cheap. What happened after is that wages went up for a little while (to get people to come back), and rents went up to match. Now the wages have crashed back down but the rent hasn't joined it.

Very frustrating.

Try to watch what people say about New Orleans. They talk about how employment is good and the like. Well, that's not precisely true. Yes, it's good... but only compared to five years ago. What happened five years ago? Hurricane Katrina. Of course it's better. It would have to be.

[Morpheus79]

The cost of living is high compared to the wages. Before Katrina, things were more affordable. After Katrina, the prices skyrocketed, but the wages never moved. You used to be able to get a nice apartment for like $500, but now it's over $700 to live in the scariest of places. There are just not many good jobs down here. There are jobs, just not good ones. If you want the Midwest bang for your buck, St. Louis and Memphis offer matching prices for their low wages.