It’s Not the Price — It’s the Payment
- Elisa Cool Murphy
- 3 days ago
- 4 min read
Unpacking why property isn’t moving — and what it actually takes to sell right now
A seller said to me recently — as many have before — “This is a million-dollar home.”
And they weren’t wrong.
But I asked something that shifted the conversation:
“Is it also a $9,500-a-month home?”
Because that’s what it would take — after insurance, interest, and taxes — for a buyer to actually own it. That monthly payment number is where deals are won or lost.
We’ve reached a point in the market where list price and real-life affordability are two very different conversations. And in New Orleans, that gap is starting to shape the story of who buys, who waits, and why some homes—even well-loved ones—aren’t moving.
The National Picture: Homeownership and Access
Nationally, the homeownership rate is holding steady at ~66%.
Millennials (1981–1996) still make up the bulk of buyers.
Gen Z (1997–2012) is entering the market creatively — co-buying with friends, leaning on parents for down payments, and finding lenders who understand nontraditional buying paths.
But while desire is there, access is narrowing:
Over 80% of new mortgages now go to borrowers with credit scores over 720.
Only 3.6% go to those with scores under 620.
Buyers aren’t walking away because they’re not interested. They’re being priced out by underwriting standards, uneven incomes, and rising monthly obligations.
The Gulf South Reality: Insurance Is the X-Factor
Louisiana has the second-highest homeowners insurance premiums in the U.S. — averaging $5,710/year, just behind Florida.
In New Orleans, that number climbs even higher for:
Older homes that need updates to qualify for coverage
Flood zones and storm-prone areas with few insurer options
Citizens policies that cost two to three times more than standard private insurance
That can add $400–700/month to a buyer’s cost, making or breaking the math, even when the price feels right.
New Orleans: Where Sticker Price and Real Cost Diverge
Our median home price is ~$330,000, lower than the national average of ~$412,000. But our median household income is only $55,580 — nearly 30% below the national figure.
So, let’s do the math.
The Monthly Cost of a "Typical" $330K Home
With:
10% down
6.8% interest rate
$10,000/year insurance
PMI
$3,000/year property tax
The monthly cost comes to $3,267:
$1,936 – Mortgage
$833 – Insurance
$248 – PMI
$250 – Property Tax
To stay under the 30% housing cost rule, a buyer would need to earn $130K+/year.
That’s not your typical income in New Orleans. So when a seller asks why buyers aren’t making offers, this is the honest answer:
The home isn’t overpriced. It’s underaffordable.
Why Some Homes Sit While Others Sell
Some neighborhoods — Lakeview, Audubon, Uptown — are still moving fast. Others, like Plum Orchard, New Orleans East, and the Lower 9th Ward, have plenty of listings but fewer qualified buyers.
It isn’t a value problem. It’s a payment-to-income mismatch.
And that’s why some listings are sitting, even when they’re thoughtfully presented, accurately priced, and well-maintained.
What We're Doing to Bridge the Gap
At Cool Murphy Real Estate, we’re helping buyers close every week by strategies like:
Compare insurance options early – Help buyers explore competitive insurance rates and policy types before finalizing a contract.
Use AI-driven affordability tools – Go beyond loan approval to model what buyers can actually live with, not just qualify for.
Explore co-buying options in New Orleans – Support buyers teaming up with friends, partners, or family members to unlock buying power.
Identify homes with equity-building potential – Guide clients toward properties that may need updates but offer long-term value.
Partner with mortgage lenders who customize financing to client goals – Connect buyers with professionals who understand both life planning and local lending.
Track down assumable mortgage listings – Locate properties where buyers can step into lower interest rates.
Coach smart offer strategy – Tailor pricing and negotiation to market conditions, especially in high-saturation zones.
The Takeaway
New Orleans isn’t unaffordable because the homes aren’t worth it. It’s unaffordable because the monthly cost of ownership has quietly surpassed what many residents actually earn.
That doesn’t mean we’re stuck. It just means that now more than ever, pricing and selling property isn’t about competition — it’s about collaboration.
And that’s what we’re here to lead.
Curious what the numbers look like on your home? Let’s talk strategy that works on both sides of the table.
Helpful Resources:
📚 Sources
¹ U.S. Census Bureau, 2024 Q4 Housing Survey² Federal Reserve Bank of St. Louis (FRED) – Louisiana Housing Stats³ Redfin / Axios Buyer Trends Report, 2025⁴ LendingTree Mortgage Market Stats, 2024⁵ MPA & Insurance.com – 2025 Homeowners Insurance Rankings⁶ Rocket Homes – New Orleans Market Report, March 2025⁷ National Association of Realtors – Median U.S. Home Price, March 2025⁸ The Data Center – Greater New Orleans, 2024⁹ U.S. Census Bureau, American Community Survey¹⁰ Calculated using standard mortgage formula w/ local inputs & verified via Rocket Mortgage + Bankrate¹¹ Aggregated from Zillow, Rocket, and MLS data for New Orleans Metro, Q1 2025
Voted Neighborhood Favorite by Nextdoor, Team Cool Murphy is a top-producing, licensed real estate team based in New Orleans, brokered by Cool Murphy, LLC.
Celebrated for her next-level creative approach to real estate, Elisa Cool Murphy is an award-winning, top-performing real estate broker in New Orleans and the founder of Cool Murphy Real Estate.
Contact Her -
email: cool@coolmurphy.com
Facebook: @homeinneworleans
IG: @coolmurphynola
YouTube: @coolmurphynola
phone: 504-321-3194
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