Mid-City New Orleans – housing is a challenge
Mid-City Condos New Orleans real estate
Are $200K Mid-City condos “affordable” for young professionals? Ilse Falk Stough, project manager for New Orleans Redevelopment Fund, think so. I agree. The company (a private equity real estate firm) plans a 21-unit building at 3100 Banks Street, in Mid-City. That’s the part of Banks between Jefferson Davis Parkway and S. Broad Street.
The developer thinks they can market this development to, as reported by NOLA dot com. Banks Street below S. Carrollton Avenue offers more opportunities such as this lot. Above S. Carrollton, the neighborhood is more gentrified. Property owners fix up multi-family dwellings, converting them into unlicensed hotels.
From movie theater to condos
The 3100 Banks Street location offered the neighborhood the Escorial Theater, from the 1910s to the 1950s. The building operated as mixed retail/commercial space until the 1990s. It burned down at that time. The property has been an empty lot since.
$200K per unit?
I’m not an expert on real estate, but my instinct says this price range is reasonable. The developer targets the right demographic. If the old calculations still hold up, the theory was, don’t take on a house note that’s more than one-third of your take-home pay. A 15-year mortgage (with a 20% down payment) on one of these condos means a monthly note around $1350. That puts the income needed to fit the one-third plan at between $55K-$60K.
Is this realistic? A quick google of “NOFD Starting Salary” comes back with $45,955. Let’s assume a brand-new firefighter needs a few years to get to the point of home ownership. A young professional in the private sector earns a higher salary than a firefighter, so yes, this is in line.
Another aspect of this discussion is single vs. couple. Certainly a two-income couple can afford the note on a $200K condo.
Condo vs. House
This is an ages-old consideration. Condo closer in the city? Die and go to the suburbs? It’s possible to get a $200K house in the burbs. Living in the city means paying more for fewer square feet. While there are fewer neighborhoods where a “young professional” finds a fixer-upper, it’s not out of the question. Therefore, the condo/city vs. suburban/front-lawn debate continues.
Mid-City New Orleans is the main neighborhood setting for Edward J. Branley’s Urban Fantasy novel, Trusted Talents. Check it out!