Is it a good idea to invest in Airbnb New Orleans in 2022, or is it better to invest in long-term rentals instead?

Following the 2021 surge in demand for secondary homes across the US, the New Orleans real estate market has become one of the most lucrative markets to invest in.

In this article, we will take a deep look at the housing market in New Orleans LA to see what investment opportunities can be found there.

The real estate market in New Orleans, just like most other US markets, saw a significant increase in demand in 2020 and 2021.

This was due to a number of reasons, but mainly due to the reduced interest rates on mortgages which have rejuvenated the market and resulted in an increased demand for second homes.

This increase in demand mostly affected rural areas outside of busy city centers as people wanted to stay away from crowded areas due to the COVID-19 pandemic.

Of course, in order to understand if investing in Airbnb New Orleans is a good idea or not, it’s important to look first at the stats of the overall market in the past year. These stats include:

  • The median listing price of homes in New Orleans, LA, was 7.7% higher in December 2021 than the same month in the previous year.
  • The prices of duplexes, triplexes, condos, and townhomes were considered affordable compared to other markets.
  • Homes in New Orleans were selling after 78 days on the market, on average.

Now that we have an idea of how the New Orleans market performed in 2021, let’s take a look at the market’s stats in 2022.

New Orleans LA Real Estate Market

The following data on the New Orleans rental market is from Mashvisor, and it showcases the main performance stats of the market as a whole, including traditional rentals and Airbnb New Orleans 2022:

  • Median Property Price: $546,176
  • Average Price per Square Foot: $333
  • Traditional Monthly Rental Income: $1,888
  • Traditional Cash on Cash Return: 2.16%
  • Price-to-Rent Ratio: 24
  • Monthly Airbnb Rental Income: $3,268
  • Airbnb Cash on Cash Return: 3.66%
  • Airbnb Daily Rate: $204
  • Airbnb Occupancy Rate: 58%
  • Days on Market: 72
  • Walkscore: 56

Related: The Best Comparative Market Analysis Tools for Beginner Investors

As you can see in this data, when looking at the overall New Orleans housing market, it doesn’t seem like an outstanding investment opportunity.

However, it is when you look deeper at the neighborhoods within the city that you will find the best investment opportunities in Airbnb New Orleans in 2022.

To learn more about how we will help you make faster and smarter real estate investment decisions, click here.

But before exploring a few of the best neighborhoods for investing in New Orleans Airbnb, let’s first answer a very important question.

Is It Legal to Own Airbnb New Orleans?

This is a question that any investor should ask themselves before investing in any real estate market.

However, this is especially important in the case of Airbnb New Orleans since the “ban” on short-term renting that was introduced in 2019.

While short-term rentals faced severe restrictions based on the new laws that were introduced that year, it doesn’t mean that it isn’t possible to rent out an Airbnb in the city.

How Is a Short-Term Rental Defined?

Before talking about the different licenses that you could obtain to run and operate a vacation rental in New Orleans, it’s important to define what qualifies as a short-term rental there:

  • A short-term rental can’t be an outdoors space, a recreational vehicle or an accessory structure.
  • A property manager must be present in the city if the owner is not present during a guest’s stay.
  • The rental property must not cause any disturbance to the community or neighborhood in which it is located.

So, before owning an Airbnb New Orleans, you must make sure that these characteristics apply to the house you’re renting out.

Types of Short-Term Rental Licenses

Since the 2019 laws were introduces, three different types of licenses became required in order to be able to rent out your home to short-term guests using platforms such as Airbnb:

Type A (Accessory) License

This license allows home owners to rent out a room or part of a property that they are a permanent resident of.

  • This lets you rent out up to three bedrooms or up to six guests
  • You must show proof of your homestead exemption
  • You must get an approval from the department of Safety and Permits

Type C (Commercial) License

This license will let you operate an Airbnb or vacation rental property that you own as a commercial business in a non-residential district. With this license, you:

  • Are allowed to rent out up to five rooms or up to 10 guests
  • Must get an approval from Safety and Permits
  • Will need to get a change of use permit as well as a permitted use in most non-residential districts
  • Must at least have one parking space for every two guestrooms, as well as one bicycle space per dwelling

Type T (Temporary) License

This license allows the property owner to rent out the entire dwelling for up to 90 days – hence the temporary part.

  • This lets you rent up to five rooms or 10 guests
  • Must obtain approval from Safety and Permits
  • Must get a temporary use permit
  • The owner of the property does not need to be present during the time the property is being rented out
  • If the owner is not present, then a property manager or a current renter must be present in their stead (if rental arbitrage is being used)

What’s It Like to Live in New Orleans LA?

Another important aspect to look at when discussing Airbnb New Orleans is the lifestyle and attractions that lead guests to come into the city.

Since vacation rentals are the most popular type of short-term rentals, their performance will be tied to the activities and attractions that surround them.

So, before we jump into the section in which we showcase the top performing neighborhoods in New Orleans, let’s first take a look at what makes some of these locations popular.

Festivals

There are tens of festivals that take place in New Orleans each year.

With themes spanning everything, from pop-music to tomatoes and Tennessee Williams, this is a city that offers its visitors a wide range of colorful events and joyful festivities almost every weekend of the year.

Night Life

The night life is one of the biggest attractors when it comes to Airbnb New Orleans.

This is because the city likes to stay up late, and it is known as the birthplace of jazz and cocktails.

Music plays a big role in the city’s culture, and New Orleans nights are filled with opportunities to listen to live music and dance and enjoy lively and unforgettable nights.

French Quarter

The French Quarter is one of the most iconic locations in New Orleans.

This neighborhood includes a reimagined French Market with modern boutiques and artisan cocktails that attract tourists from all around the nation.

The neighborhood also includes the St. Louis Cathedral, Madame LaLaurie’s mansion, among other pieces of architectural art.

It should be noted here that there are special regulations for Airbnb New Orlanes French Quarter, as all licenses are prohibited in that neighborhood except for type C license holders with properties in the Bourbon Street.

Other Attractions

These are only a few reasons that make New Orleans Airbnb popular and brings so many tourists to the city.

But the city is known for its history and beauty, and it has a long intimate relationship with things like music and cultural arts.

The city also takes pride in its popular sports scene and several tour spots, including hiking trails and other outdoors activities.

Best Neighborhoods for Investing in Airbnb New Orleans 2022

Now that you know what makes New Orleans such an attractive and busy market when it comes to vacation rentals, let’s take a look at some of the best performing neighborhoods in the city.

If you’re looking for the best Airbnb investment locations, these top neighborhoods all have good cash on cash return and cap rate, and are relatively affordable compared to the market as a whole.

So here are the best places to buy Airbnb property in New Orleans:

B.W. Cooper

  • Number of Airbnb Listings: 827
  • Airbnb Cash on Cash Return: $2,195
  • Airbnb Daily Rate: $219
  • Airbnb Occupancy Rate: 61%
  • Median Property Price: $150,000
  • Average Price per Square Foot: $110
  • Walkscore: 48

St. Roch

  • Number of Airbnb Listings: 428
  • Airbnb Cash on Cash Return: 6.96%
  • Airbnb Daily Rate: $179
  • Airbnb Occupancy Rate: 63%
  • Median Property Price: $182,667
  • Average Price per Square Foot: $214
  • Walkscore: 67

McDonogh

  • Number of Airbnb Listings: 267
  • Airbnb Cash on Cash Return: $3,448
  • Airbnb Daily Rate: $222
  • Airbnb Occupancy Rate: 55
  • Median Property Price: $324,900
  • Average Price per Square Foot: $224
  • Walkscore: 46

St. Claude

  • Number of Airbnb Listings: 348
  • Airbnb Cash on Cash Return: 5.87%
  • Airbnb Daily Rate: $176
  • Airbnb Occupancy Rate: 64%
  • Median Property Price: $367,500
  • Average Price per Square Foot: $202
  • Walkscore: 70

Dixon

  • Number of Airbnb Listings: 232
  • Airbnb Cash on Cash Return: 5.69%
  • Airbnb Daily Rate: $165
  • Airbnb Occupancy Rate: 65%
  • Median Property Price: $403,000
  • Average Price per Square Foot: $232
  • Walkscore: 60

Related: How to Find the Best Area for Airbnb Investment

As you can see from Mashvisor’s data analytics, these neighborhoods are some of the most promising locations to buy Airbnb property.

With an investment property that is much more affordable than the city’s average, you will have the potential to achieve a much higher cash on cash return from your New Orleans Airbnb.

So, are you ready to start your search for your next investment in New Orleans?

Let’s talk about the easiest way for you to find an investment property anywhere in the US based on market Airbnb analysis.

How to Find Airbnb New Orleans Investment Properties?

If you found the data above useful and you’re wondering how to invest in real estate using real estate data like that, the answer is simple: use Mashvisor.

Mashvisor is a real estate platform that was created to help real estate investors find the best investment property to purchase and rent out based on housing market data analysis.

To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.

The platform offers a variety of tools and features that can help you throughout your journey.

From the moment you decide to learn how to invest in real estate, to the moment you buy your first investment property.

Mashvisor will help you estimate Airbnb income from any rental property in any market that you want, and it will help you find the best Airbnb investment locations that you can afford.

Investment Property Finder

Using Mashvisor’s Property Finder tool, you will be able to search through any US market for properties that match your investment criteria such as:

  • The property type
  • Optimal rental strategy (traditional or Airbnb)
  • Return on investment
  • Listing price
  • Market availability

By entering the name of up to five cities in the search bar, our AI will look through all listed properties in these locations and give you a list of homes for sale that match your search criteria and have good cash on cash return.

Airbnb New Orleans Investment Property Finder

Mashvisor’s Property Finder lets you search for properties in up to five US cities at the same time.

Real Estate Heatmap

Another great tool that can help you with your Airbnb analysis is Mashvisor’s real estate heatmap.

The heatmap feature lets you search for properties on a map tool while applying a layer that colors areas based on the filter you have selected to showcase how each area is performing for the chosen stat:

  • Traditional rental income
  • Traditional cash on cash return
  • Airbnb rental income
  • Airbnb cash on cash return
  • Airbnb occupancy rate
  • Property listing price

This tool can help you identify the best Airbnb investment locations by focusing your search on areas that you know have potential for a good cash on cash return in New Orleans Airbnb market.

Related: This Heatmap Will Show You Where to Invest in Real Estate

Airbnb New Orleans Real Estate Heatmap

Mashvisor’s Real Estate Heatmap highlights the best (green) and worst (red) parts of a city based on your selected metric.

Bottom Line

Investing in Airbnb New Orleans can be a very lucrative investment decision with potential for substantial profits.

Although the city as a whole saw a sharp increase in property prices over the past two years, Mashvisor’s data shows us that there are neighborhoods in the city that have great potential for investment.

So, if you’re looking to buy Airbnb property with good cash on cash return in New Orleans, start your search today with Mashvisor’s Property Finder and real estate heatmap tools to estimate Airbnb income and make your Airbnb analysis easier than ever.




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