Cost of Living in Louisiana: Average Rent, Groceries, Utilities, and More

Considering a move to Louisiana? From bustling New Orleans to the slower pace of Lafayette, the state boasts diverse lifestyle options at various price points. Though Louisiana’s cost of living tends to be lower than the national average, housing, groceries, and other living expenses can vary greatly depending on location. In this guide, we’ll explore the essential factors shaping the cost of living in Louisiana, from housing prices and grocery costs to taxes and healthcare, to help you understand what it takes to live comfortably in the Pelican State.

Housing costs: Median home prices and average rent in Louisiana

Housing costs in Louisiana are generally more affordable than the national average, making it an attractive option for residents seeking a lower cost of living. The average rent in Louisiana is around $1,304 per month, significantly below the national average of $1,645. For those interested in purchasing a home, Louisiana’s median home sale price is approximately $248,200, offering competitive options compared to many other states. Cities like New Orleans and Baton Rouge tend to have higher housing costs, with popular areas driving up both rental and home prices due to demand. In contrast, cities such as Shreveport and Monroe offer more affordable options, with lower-than-average rents and home prices that appeal to budget-conscious residents.

Louisiana housing costs: Average rents and median home sale prices

Housing costs in popular cities in Louisiana

New Orleans

New Orleans is filled with history, one-of-a-kind music, and culture that draws people from around the world. The average rent for a one-bedroom apartment here is $1,587, while a two-bedroom goes for around $1,850. If you’re looking to buy, the median home sale price sits at $315,000, reflecting New Orleans’. Living in New Orleans means access to lively neighborhoods, unique architecture, and an amazing food scene. However, expect housing costs to be on the higher side due to the city’s popularity and historical significance.

Read more: 11 Pros and Cons of Living in New Orleans

Baton Rouge

Louisiana’s capital, Baton Rouge, offers a mix of Southern hospitality and university-town energy thanks to LSU. Rent in Baton Rouge is more affordable than New Orleans, with an average one-bedroom apartment costing about $1,106 and a two-bedroom around $1,260. The median home sale price is also lower at $192,264, making Baton Rouge an attractive option for both renters and homebuyers.

Shreveport

Shreveport, in the northwest corner of Louisiana, offers some of the most affordable housing in the state. Rent for a one-bedroom apartment averages $960, while a two-bedroom is around $1,215. With a median home sale price of $183,200, Shreveport is an appealing option for those looking to buy a home at a lower cost. Known for its casinos, riverfront, and museums, Shreveport provides a more relaxed pace of life.

Lafayette

Lafayette, the heart of Cajun Country, is known for its vibrant music and food scene that celebrates Louisiana’s French heritage. The average rent for a one-bedroom apartment in Lafayette is around $1,222, while a two-bedroom averages $1,429. Homebuyers will find a median home sale price of $240,000, placing Lafayette between Shreveport and New Orleans in terms of affordability. Living in Lafayette offers access to rich cultural festivals, excellent Cajun and Creole dining, and a warm community vibe.

Utility costs are below the national average

Utilities in Louisiana tend to be more affordable than in many parts of the country, making it easier for residents to manage monthly expenses. Gas bills in Louisiana average around $50.67, which is relatively low, particularly in regions with milder winters that require less heating. Electricity costs average $159.24 per month, which is still fairly moderate, although the hot and humid summers mean air conditioning can push bills higher during peak months. Overall, the lower utility costs are a significant financial benefit for residents, allowing for greater flexibility in other areas of the budget.

Energy bill comparisons: Louisiana cities vs. nationwide average

Data from Redfin’s Cost of Living Calculator, November 2024

Expect to pay less for groceries in Louisiana

Groceries in Louisiana are generally affordable, costing around 8% less than the national average, which can make a noticeable difference in monthly budgets. This affordability extends to essential items like fresh produce, dairy, and staple goods, making it easier for residents to keep pantry costs low. In Shreveport-Bossier City, grocery costs are even more budget-friendly, averaging about 3% less than the national rate. Louisiana’s rich agricultural scene also means locally-sourced ingredients, including seafood, rice, and seasonal fruits, are readily available at lower prices. 

Plenty of affordable transportation and public transit options

Transportation costs in Louisiana are generally affordable, with gas prices averaging between $2.80, which is below the national average of $3.11 per gallon. This makes commuting and road trips relatively inexpensive, though prices can vary depending on the region. Larger cities like New Orleans and Baton Rouge offer public transportation options, including buses and streetcars, making it easy to get around without a car, though coverage can be limited in more rural areas. You can expect to pay around $1.25 for a single ride on the New Orleans streetcar or $6 which gets you 24 hours on the RTA and Jefferson Transit (JeT) lines. While car ownership is still the most common form of transportation, Louisiana’s mix of public options helps keep travel costs manageable.

Healthcare prices soar in popular metros

Healthcare costs in Louisiana are generally higher than the national average, with residents facing increased medical expenses compared to other states. The average cost for a doctor’s visit is typically above $100, and in cities like New Orleans, it can be even higher. Health insurance premiums can also be steep, especially for those without employer coverage. In fact, in 2020, the average person in Louisiana spent about $9,796 on healthcare, reflecting the state’s higher healthcare costs compared to many other parts of the country.

Expect moderate tax rates in Louisiana

Louisiana’s tax structure is a blend of moderate rates, making it relatively affordable for residents compared to many other states. The state has a progressive income tax, with rates ranging from 1.85% to 4.25% depending on income level. Louisiana also has a 4.45% state sales tax, which is higher than the national average, though local governments may impose additional taxes, making the total sales tax rate in some areas reach over 10%. Property taxes in Louisiana are relatively low, with an effective rate of about 0.51%, which is well below the national average of 0.99%. While Louisiana’s overall tax burden is moderate, the state’s sales and income taxes can vary significantly by parish

How much do I need to earn to live in Louisiana?

To live comfortably in Louisiana, it’s recommended that you spend no more than 30% of your monthly income on housing, according to the widely recognized 30% rule. For example, with the average rent for a one-bedroom apartment in Louisiana at around $1,304 per month, you should aim for a monthly income of about $4,347 to keep housing costs within a manageable range. This translates to an annual income of approximately $52,164 before taxes. Of course, this figure can vary depending on the city and lifestyle. In more affordable areas like Shreveport, you might be able to live comfortably with a lower income, while cities like New Orleans may require a higher salary due to its more expensive housing market.

Methodology

Average 1-bedroom and 2-bedroom rent sourced from Rent. Median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin.