As the mighty Mississippi River meanders along its 2,320-mile journey from Lake Itasca in Minnesota to the Gulf of Mexico, it leaves its mark on the countryside and its people. This is never truer than when it passes through Baton Rouge. In fact, it could easily be said that the Mississippi gave birth to Baton Rouge as we know it today. The truth is, the Mississippi is an integral part of U.S. history, but in Baton Rouge it allowed early explorers easy access to the area as well as the modern development and expansion of the city.
Baton Rouge is not only Louisiana's state capital but also home to Louisiana State and Southern Universities. A national real estate website says that LSU's Tiger Stadium "was voted as 'Scariest Venue for Opposing Teams' by ESPN because it is the loudest stadium in the country. In Baton Rouge, football is serious business." Geaux Tigers!
But that's not all that "Red Stick," the English translation of Baton Rouge, has to offer. Job seekers will find an amazing array of large corporations that have opened branches or even headquarters here. These include BASF Wyandotte Corporation, Dow Chemical Company, Entergy/Gulf States Utilities, Exxon lovChemical Americas, Georgia Gulf Corporation, J. E. Merit Construction, Inc., Bank One and others. The unemployment rate here sits at a comfy 5.5 percent, and companies are hiring.
If you are averse to cold weather, you'll love the climate here. The average temperature is 85 degrees Fahrenheit in summer and 53 degrees in the winter (yes, in the winter), and the average annual temperature is a comfortable 66 degrees.
Outdoor enthusiasts have found their Nirvana in Baton Rouge. Whether they choose to run along the levees or spank Mr. Whitey at Dumas or Santa Maria golf courses, they find a way to get outside and be active.
Dining in Baton Rouge is an experience not soon forgotten. Fast food fans from out of state should build a shrine at Raising Cane's "Mothership," just outside LSU. More serious gourmands enjoy the always-packed Parrain's Seafood - the best alligator is a fried one, right? Then there's the amazing Hallelujah Crab at Juban's or even just inhaling the aroma when walking past Zea Rotisserie & Grill.
Q2 2015 Baton Rouge Rental Market Update
Baton Rouge is unfortunately one of the least attractive metropolitan areas in the country for rental real estate investment. It is ranked 17th out of 17 Southeastern metros in the Q2 2015 Rental Ranking Report (a drop of two spots from the previous quarter) and 73rd out of 75 metros in the Rental Ranking Report's national rankings (a drop of 10 spots).
Virtually every statistic used to gauge the strength of housing markets paints a dreary picture of Baton Rouge. Median rents fell 5.63 percent year-over-year in Baton Rouge in Q2 2015; this should be enough to make any prospective rental property owner balk at the idea of investing there. The annual property value appreciation rate in Baton Rouge was 3.78 percent, which, while considerably better than its negative rental price appreciation rate, was still more than 25 percent less than the national average for that metric last quarter.
A dismal vacancy rate (8.00 percent, about 20 percent less than the national average), relatively high median age of housing inventory (74 days, about 20 percent more than the national average), and poor annual job growth rate (1.57 percent, about 20 percent less than the national average) - all metrics used to indicate demand for housing - reinforce the fact that rental real estate investors should stay far away from Baton Rouge for the time being.
What data is this Rental Ranking Report based on?
To calculate the statistics found in the Q2 2015 Rental Ranking Report, All Property Management gathered data, including the most recent government housing and jobs data, for 75 metros across the United States. Specifically, we looked at home vacancy, capitalization, home value appreciation and job growth rates, changes in rental prices, and the average number of days properties have been on the market to determine which U.S. metros will give investors the highest returns on rental investments. Click here to learn more about the Rental Ranking metrics.
Should I invest in Baton Rouge rental property?
Thinking about renting out a property in Baton Rouge? Save time, avoid hassle and maximize your rental income by having a professional property management company operate your rental property for you. Click here to get a free quote from a local property manager or call 877-780-4510 to have the All Property Management staff get quotes for you.
All Property Management specializes in connecting rental property owners with professional property managers in communities across the United States. These property managers help set rental rates, advertise properties, screen and manage tenants, collect rent, manage vendor relationships and ensure compliance with local, state and federal housing regulations. They take the hassle and worry out of managing rental properties - all while maximizing rental property owners' rental incomes.