New Orleans is the 11th-worst city in the United States for first-time homebuyers. That's according to a new WalletHub survey.
So what makes New Orleans undesirable for first-time homeowners?
"Usually the biggest issue there is insurance and the cost to maintain (a home). Labor costs have gone through the roof. Material costs have certainly gone up," local real estate analyst Arthur Sterbcow said. "The affordability hurt us a little bit because of insurance, of course. You would expect that. The price per square foot: we have some older houses, and it's extremely expensive to renovate old homes."
Sterbcow told WWL's Tommy Tucker that the city's public school system and crime rate played a roll in the city's low ranking.
"Out of 300 cities under quality of life, we were ranked 291--291 out of 300," Sterbcow said.
Sterbcow credited the study's researchers for the quality of their work, calling the study's findings "accurate."
"This is about as honest and detailed as a study as I've seen," Sterbcow said. "These are Fannie Mae, Freddie Mac, FBI statistics, insurance industry statistics, documented facts. It's hard to find fault when they are dealing with documented historical data."
Sterbcow pointed out that the study examined only the city of New Orleans and not the entire metro area. Furthermore, he stresses the study is aimed at people who are entering the housing market for the first time.
Despite it all, Sterbcow says home ownership is still better option than renting.
"Get on that equity escalator," Sterbcow advised.
