Top 5 Residential Real Estate Investment Markets in Louisiana

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By Trent Seigfried Updated June 4, 2024
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Edited by Michael Yessis

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Albany is home to the best residential real estate investment market in Louisiana.

The 70711 zip code in Albany presents the greatest opportunity for investors among the 860 individual real estate markets in Louisiana we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.

Top 5 Louisiana residential real estate markets

RankCity InvestScore Affordability Property value appreciation
1Albany1002.635.06%
2Downsville96.82.824.46%
3Welsh93.91.611.48%
4Addis92.12.725.68%
5Winnsboro912.526.96%
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1. Albany

We've identified the 70711 zip code in Albany as Louisiana's best real estate investment market. Here's why.

πŸ”Ž Key data about Albany

Data pointValueRank in state (of 860 markets)
Zip code70711N/A
InvestScore 100Highest
Typical property value $224,431[1]144th lowest
Five-year appreciation 35.06%[2]3rd highest
Household income $86,008[3]21st highest
Affordability ratio 2.642nd most affordable
Five-year population growth 12.6%[4]21st highest
Unemployment rate 1.4%[5]6th lowest
Property taxes $669[6]87th lowest
Educational attainment 19.9%[7]112th highest
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Albany (zip code 70711) is the best residential real estate investment market in Louisiana. It has the 3rd highest property value appreciation among markets we evaluated, with a 35.06% appreciation of the typical property over the last five years.

Albany is the 42nd most affordable market among the 860 Louisiana markets we evaluated, with an affordability ratio of 2.6.

2. Downsville

The 71234 zip code in Downsville is Louisiana's second-best residential real estate investment market.

πŸ”Ž Key data about Downsville

Data pointValueRank in state (of 860 markets)
Zip code71234N/A
InvestScore 96.82nd highest
Typical property value $205,425[8]126th lowest
Five-year appreciation 24.46%[9]39th highest
Household income $73,616[10]46th highest
Affordability ratio 2.862nd most affordable
Five-year population growth 26.8%[11]4th highest
Unemployment rate 0.5%[12]2nd lowest
Property taxes $506[13]61st lowest
Educational attainment 18.3%[14]125th highest
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The 71234 zip code in Downsville features a typical property value of $205,425, the 126th lowest in the state.

Property values have appreciated 24.46% over the past five years, the 39th highest increase among evaluated markets in the state. Downsville homes have an affordability ratio of 2.8, the 62nd most affordable in the state.

3. Welsh

The 70591 zip code in Welsh comes in at No. 3 in our ranking of residential real estate investment markets in Louisiana.

πŸ”Ž Key data about Welsh

Data pointValueRank in state (of 860 markets)
Zip code70591N/A
InvestScore 93.93rd highest
Typical property value $132,918[15]47th lowest
Five-year appreciation 11.48%[16]120th highest
Household income $83,382[17]25th highest
Affordability ratio 1.65th most affordable
Five-year population growth -6.9%[18]160th highest
Unemployment rate 0%[19]lowest
Property taxes $301[20]25th lowest
Educational attainment 12.3%[21]185th highest
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With a typical property value of $132,918, Welsh's 70591 zip code features the 47th lowest property values in the state.

Welsh homes have an affordability ratio of 1.6, the 5th most affordable among the markets we evaluated.

4. Addis

The 70710 zip code in Addis ranks No. 4 among Louisiana's residential real estate investment markets.

πŸ”Ž Key data about Addis

Data pointValueRank in state (of 860 markets)
Zip code70710N/A
InvestScore 92.14th highest
Typical property value $269,589[22]179th lowest
Five-year appreciation 25.68%[23]28th highest
Household income $101,450[24]28th highest
Affordability ratio 2.746th most affordable
Five-year population growth 44.5%[25]2nd highest
Unemployment rate 1.8%[26]8th lowest
Property taxes $1,294[27]149th lowest
Educational attainment 31.8%[28]53rd highest
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Property values in Addis's 70710 zip code have seen the 28th highest increase among evaluated markets in the state, with an appreciation of 25.68% over the past five years.

Addis's affordability ratio of 2.7 makes it the 46th most affordable among the 860 markets we evaluated.

5. Winnsboro

The 71295 zip code in Winnsboro rounds out our top five residential real estate investment markets in Louisiana.

πŸ”Ž Key data about Winnsboro

Data pointValueRank in state (of 860 markets)
Zip code71295N/A
InvestScore 915th highest
Typical property value $106,177[29]27th lowest
Five-year appreciation 26.96%[30]23rd highest
Household income $41,923[31]23rd highest
Affordability ratio 2.540th most affordable
Five-year population growth 0.9%[32]92nd highest
Unemployment rate 8.7%[33]156th lowest
Property taxes $340[34]28th lowest
Educational attainment 15.6%[35]149th highest
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Property values in Winnsboro's 71295 zip code rose 26.96% over the last five years, ranking the city 23rd highest among evaluated markets in Louisiana.

Winnsboro homes have an affordability ratio of 2.5, the 40th most affordable among the markets we evaluated.

How we rank residential real estate markets in Louisiana

We evaluated 860 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Louisiana.

What is InvestScore?

InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.

  • Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
  • Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
  • Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income.
  • Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
  • Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
  • Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
  • Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
  • Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates  local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.

Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.

Article Sources

[1] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[2] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[7] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[8] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[9] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[14] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[15] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[16] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[21] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[22] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[23] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[28] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[29] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[30] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[35] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.

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