Everything You Need to Know to Start Your Property Investment Journey.
Shreveport, the third-largest city in Louisiana, spans over 123 square miles and boasts a rich history and culture. Located where Arkansas, Texas, and Louisiana converge, it is known for its cultural fusion, and this is beautifully reflected in its architecture, art, music, and food. Shreveport’s unique charm and character has drawn numerous investors and buyers to the area, which is home to approximately 187,000 residents.
A stunning destination surrounded by beautiful pine forests, cotton fields, waterways, and wetlands, Shreveport is a warm and welcoming community. In recent years, it has been attracting many who are keen to settle in the city. Homebuyers and investors in particular are drawn to the great investment potential of the local real estate market.
If you’re looking to invest in Shreveport—ranked the #2 best place to live in Louisiana by the U.S. News & World Report—now is the most opportune time.
Learn more about Shreveport real estate and how you can build and expand your property investment portfolio.
Table of Contents:
UNDERSTANDING THE SHREVEPORT REAL ESTATE MARKET
Housing Market Overview
The Shreveport housing market is growing and becoming more competitive each year. As of April 2024, the median price of a home is $200,000, reflecting a year-over-year increase of 5.3%. The median sale price per square foot is $109.
Shreveport may be relatively smaller than other major metropolitan areas, but its potential for real estate investment is immense. The city offers a range of properties and accommodations in different neighborhoods, each with its unique charms and features. You can also find a variety of interesting properties, from French-style colonial homes to Art Deco, Classical Revival, and even Baroque-influenced residences. In addition, there are numerous commercial leases available in key zones within the city.
Investors are increasingly interested in Shreveport real estate due to its strategic location as a transportation hub. Situated on the Red River, the city has access to major railways, waterways, and highways.
Economically, Shreveport is significant, hosting important institutions like Barksdale Air Force Base, Willis-Knighton Health System, and University Health System, which contribute substantially to employment.
One of the main drivers attracting more people to Shreveport is the low cost of living, which is 9.7% lower than the national average. Additionally, housing costs are approximately 50% lower than the national average.
With the population predicted to grow in the long run, Shreveport is an ideal location for those interested in investing in real estate, as the demand for housing will undoubtedly increase in the coming years.
Rental Market Overview
The latest census shows that Shreveport has an owner-occupied housing unit rate of 53.8%, lower than both the state average (67.2%) and the national average (64.8%). A notable number of residents rent, with 46.2% of housing units being renter-occupied. This suggests a strong demand for rental properties in the city.
Comparatively, the higher occupancy rates for rental properties in Shreveport suggest that renting is a more prevalent housing option in the city than in other parts of the state and country. This could be due to several factors, such as local economic conditions, the affordability of rental units, or demographic trends favoring renting over homeownership.
Broadly, the rental market here is relatively balanced, with an estimated rental vacancy rate of 9-10%, indicating that a substantial majority of rental housing units are occupied. Overall, Shreveport’s housing and rental market shows a robust demand for rental units and a generally high occupancy rate for all types of rental housing.
As of May 2024, the median rent for all bedrooms and property types in Shreveport was $950, over 50% lower than the national median rent of $2,120. The folks at career.io found it to be the likeliest city in the country to have affordable rentals for college graduates. According to their research, in Shreveport, “85.40% of available properties are affordable on the local average graduate salary.”
Promising Neighborhoods for Investment in Shreveport
While real estate in Shreveport as a whole has been appreciating more gradually than other similarly sized cities in the country, some areas within the city are seeing higher appreciation rates than others. Based on the last five years, the following neighborhoods have seen the highest appreciation rates in Shreveport:
- Allendale-Lakeside
- Allendale Lakeside East
- Allendale Lakeside North
- Martin Luther King Jr. Area
- Freestate North Highlands West
- Allendale Lakeside West
- Country Club Hills – Lakeshore
Many investors and homebuyers are also looking into purchasing property in the following neighborhoods, which promise value-for-money lots and homes/properties with the potential to provide a great return on investment:
- Anderson Island
- Caddo Heights-South Highlands
- Highland Historic District
- Wright Island
- Highland-Stoner Hill
WHY INVEST IN SHREVEPORT REAL ESTATE
Shreveport presents a golden opportunity for first-time real estate investors, boasting high potential for property appreciation. The city is poised for growth, fueled by thriving healthcare, education, and manufacturing industries that drive the local economy. This surge translates to increased demand for properties as more workers and businesses flock to Shreveport. The city’s pro-business environment, offering enticing tax incentives, further attracts companies and entrepreneurs.
Additionally, property management services are readily available, assisting owners in leasing, maintaining, and managing their assets. Investors can capitalize on this favorable landscape by investing in prime properties, anticipating steady rental income growth in the coming years.
Now is an opportune moment to invest, especially considering the comparatively lower property costs in Shreveport, which outperform the national average. This presents investors with the prospect of achieving returns on their investment in a shorter period of time.
Types of Properties for Investment
Shreveport boasts an array of real estate investment opportunities, catering to various investor interests and market demands.
Here’s an overview of the types of properties available for investment in Shreveport:
RESIDENTIAL
Luxury Properties
These high-end homes often feature modern amenities, spacious layouts, and premium locations. They attract affluent buyers and renters seeking comfort, exclusivity, and status.
Single-Family Homes
Constituting 68% of Shreveport’s housing market, single-family homes, particularly those with 3 to 4 bedrooms, appeal to families and long-term renters, providing stability and a steady rental income stream.
Apartments
Accounting for 18.33% of the housing market, apartment complexes range from comfortably sized units to large multi-building developments. These options provide investors an opportunity to tap into the rental market with properties that often have higher tenant turnover but also higher rental yields.
Duplexes and Smaller Apartments
Making up 8.33% of the housing stock, smaller apartments and duplexes are attractive to investors looking for properties with lower entry costs and potentially higher rental income per square foot.
Row Houses
Though comprising a smaller portion of the market at 2.83%, row houses provide a unique investment opportunity with their distinctive architectural style and often central locations.
Condos and Townhouses
Downtown Shreveport, in particular, offers a range of condos and townhouses, appealing to professionals and young families seeking affordable, convenient housing with easy access to major transportation hubs.
With Shreveport’s growing tourism sector, short-term rentals through platforms like Airbnb can be highly lucrative as well. Investors can transform their properties into vacation homes to capitalize on seasonal demand. Utilizing property management services can also help ensure smooth operations and maintenance, maximizing rental returns.
COMMERCIAL
Beyond residential investments, investors can explore commercial properties, which will also be in high demand as the city grows.
Types of commercial properties include warehouses, office buildings, business centers, and similar structures. While these properties typically require a higher initial capital, they offer the potential for greater returns and a steady income stream due to longer lease agreements and higher rental rates.
RENOVATION PROPERTIES
Properties in need of renovation present a significant opportunity for investors. These older properties usually come at a lower purchase price. With strategic design and renovation efforts, these properties can be “flipped” and sold at a higher price or leased for a substantial profit.
LAND DEVELOPMENT
Shreveport’s economic potential makes land development a highly attractive investment. Vacant lots can be transformed into various profitable developments such as residential communities, commercial zones, shopping malls, business centers, transportation hubs, and even tourist attractions. The flexibility in land use means that investors can adapt to market demands and trends, maximizing their returns.
LOUISIANA LAWS THAT CAN IMPACT YOUR REAL ESTATE TRANSACTION: WHAT TO KNOW
Before purchasing property in Shreveport, LA, investors need to be aware of certain Louisiana laws and regulations that may impact their real estate purchases. Louisiana’s legal system is significantly influenced by its civil law tradition, which differs from the common law system used in other states.
Understanding these laws and regulations is crucial for anyone interested in purchasing real estate in Shreveport or anywhere in Louisiana. It is advisable to consult with a local real estate attorney or professional to navigate these legal complexities effectively.
Here are a few notable concerns and considerations you need to take into account before purchasing:
Usufruct
The concept of “usufruct” grants one person (the usufructuary) the right to use and enjoy the property of another (the owner) without owning it. The usufructuary can benefit from the property, such as living in it, renting it out, or harvesting crops if it’s agricultural land. This can be established by a contract, will, or by law and can last for a certain period as agreed upon or for the lifetime of the usufructuary.
This agreement has several impacts on real estate transactions. In the case of transfer of property, when a property with a usufruct is sold, the buyer must respect the usufructuary’s rights. This can complicate sales since the new owner cannot fully utilize the property until the usufruct terminates. In addition, the presence of a usufruct can affect the property’s market value. Buyers might pay less for a property since they won’t have immediate full use.
Community Property Ownership
Louisiana, as a community property state, upholds that most property acquired during a marriage is considered to be jointly owned by both spouses, regardless of whose name is on the title. (Property acquired before marriage, on the other hand, is considered separate property.)
This type of ownership can significantly impact real estate transactions when selling or transferring real estate that is community property. Both spouses must consent to the transaction in this case, which can complicate matters if there is disagreement or if one spouse is unavailable.
In addition, Louisiana law upholds that a portion of a deceased person’s estate must go to heirs/children. This is an important consideration when purchasing property that involves inherited property.
Property Disclosure
Similar to requirements in other states, sellers must be transparent and provide a Property Disclosure document that details the condition of the property. One must include any issues, damages, or defects, ensuring that buyers have a clear understanding of the property. If the seller fails to disclose this, it may result in voiding the transaction and other legal consequences.
French and Spanish Land Grants
Louisiana’s unique legal heritage is greatly influenced by French and Spanish colonization and impacts real estate transactions, particularly in cities like Shreveport.
As a background, in 1699 to 1762, the French established the legal system in Louisiana based on the Napoleonic Code. Then, when the Spanish took over in 1762 to 1803, elements of Spanish civil law were incorporated.
Many land grants in the state, including Shreveport, date back to these times, affecting property boundaries and ownership rights. Often, properties with these historical land grants may have documentation that differs from the standard records. Title searches in Shreveport may also reveal complexities such as old claims, overlapping borders, and incomplete records, among many others. Working with title companies and real estate attorneys specializing in Louisiana law are crucial in these cases.
EXCITING NEW DEVELOPMENTS IN SHREVEPORT
Shreveport is poised to become an enticing investor’s dream, with local agencies like the Downtown Development Authority (DDA) of Shreveport seeking funders, investors, and other partners to make the city ready for further development.
In its 2022 report, the DDA highlighted its development priorities aimed at stirring up more business in the Central Business District and the historic downtown area, while improving property values. These efforts signify a promising outlook for investors seeking opportunities in Shreveport’s real estate market.
Among its initiatives, the DDA is actively seeking new residential opportunities and approaching developers to assist in the funding and revitalization efforts in key areas of the city.
Current developments include several notable projects:
Restoration and Residential Conversion
Downtown properties such as the Lofts at 624, Ridgeway Square, Hughes Tool, Southern Bell, and the Hutchinson Building, among many others, are undergoing restoration and conversion into residential spaces. These developments aim to breathe new life into historic buildings while meeting the growing demand for downtown living options.
Historic Texas Avenue
Several blocks of Texas Avenue are being eyed for redevelopment, transforming the strip of vacant lots and deteriorating buildings into a commercial center. The area was formerly known as a hub for African American businesses and furniture stores.
West Edge Development
The West Edge is being built to become a vibrant center of arts and culture in Shreveport.
Cross Bayou Development
Recognizing the value and underutilization of the Cross Bayou area, the DDA aims to provide public access to the waterfront and connect it to downtown Shreveport. This initiative holds significant potential for investors interested in waterfront properties and mixed-use commercial real estate developments in Shreveport.
Red River District Redevelopment
The DDA is making concerted efforts to enhance the district’s amenities and infrastructure, transforming it into a thriving commercial and entertainment hub.
For investors seeking opportunities in Shreveport’s evolving real estate landscape, these projects present promising avenues for long-term success.
ARE YOU READY TO INVEST IN SHREVEPORT?
Shreveport’s real estate market is diverse and offers numerous investment opportunities. From luxury homes and single-family residences to apartment complexes and commercial spaces, investors can find properties that fit various investment strategies and goals.
Whether you’re seeking investment opportunities, aiming to sell, or require professional property management services, partnering with industry leaders and recognized Shreveport real estate agents like the team at Osborn Hays Real Estate ensures a seamless and rewarding experience. With Patrick Osborn’s years of experience and excellent reputation, you can rest assured that your investment properties will be handled with precision and care.
Looking for property for sale in Shreveport, Louisiana? Connect with us at 318.603.3641 or send us an email .