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The insurance crisis is impacting the housing market in Louisiana. That raises bigger worries.

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The insurance crisis is impacting the housing market in Louisiana. That raises bigger worries.


A spiraling insurance crisis has hammered Louisianans with high premiums, less coverage and fewer options, heaping intense financial pressure on residents who are already facing rising costs elsewhere.

Now, the housing market in the New Orleans area is sending distress signals, raising the prospect that the crisis could inflict broader damage on the region’s economy.

On several metrics, the local market appears to be lagging behind the rest of the country. The gulf between the median price of a house in New Orleans and one in the rest of the country has nearly doubled since 2022, from around $50,000 to almost $100,000, according to data from Zillow, a real estate tech firm that tracks housing transactions. The New Orleans area had the third-lowest rate of home appreciation among 246 metro areas in the country over the past year, according to the Federal Housing Finance Agency, with values dropping by nearly 3%, according to the agency’s index.

A recent report found Louisiana has the highest rate of mortgages that are badly underwater, meaning owners owe more than their house is now worth.

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To be sure, insurance is not the only factor depressing Louisiana’s housing market. Interest rates, which affect all U.S. buyers, are at their highest point in two decades, putting affordability at a near-record low for buyers.

Locally, though, high premiums — fueled by climate change and south Louisiana’s considerable hurricane risk — are pushing home ownership out of reach for some buyers. Many homeowners say they are considering selling as their monthly payments soar. Some sellers are having difficulty finding buyers, in part because insurance companies are raising rates or refusing to write policies.






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‘It’s unreal’

The cost increases are stark for buyers.

In 2020, the buyer of a median-priced home in New Orleans would pay about $1,400 a month in housing costs, assuming they put 20% down and paid an average rate for insurance from Louisiana Citizens, then about $142 a month.

A Times-Picayune | Advocate analysis shows the monthly note on that home is now far larger. With increases in home insurance, flood insurance and interest rates, the same home would cost $2,154 a month now. Where a family with a household income of $57,000 a year could comfortably afford the 2020 home, that family would need to make north of $86,000 a year now. The median household income for the metro area is $61,602, according to the Data Center.

Craig Mirambell, president of the New Orleans Metropolitan Association of Realtors, said many buyers have navigated high interest rates and are finding homes in their price range, only to have deals crater when they get a quote for property insurance.

“What they don’t know when they get into these processes is how unaffordable insurance is on a lot of these properties,” he said. “That’s when deals are falling apart because of the insurance crisis. Homes that used to be $3,000 to $4,000 (a year in premium) are now $8,000. It’s unreal, these prices.”

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One of Mirambell’s clients was looking for a higher-end home in New Orleans, but insurance quotes were exponentially higher than he pays in Baton Rouge, even though they came with high storm deductibles. Mirambell, who said the buyer is considering leaving the state, said he’s seeing deals fall apart “left and right” because of insurance.

“The market is still moving,” Mirambell said. “But there’s definitely cancellations due to insurance.”

Insurance is stressing every aspect of the market, including buying, owning, selling and renting. The rates charged by Citizens, the state-backed insurer of last resort whose rolls have swollen since Hurricane Ida in 2021, have climbed by thousands of dollars per year on average. New data from Citizens this week shows little sign of improvement, with premiums rising by hundreds of dollars in the past year for most policyholders. The nearly 27,000 Citizens customers in New Orleans are paying an average of $5,445 a year.

Affordable housing groups are also struggling to help prospective buyers find homes within their budget. William Stoudt, head of Rebuilding Together New Orleans, said the group’s homeowners are being crushed by rising monthly costs; some are going without insurance. Many are looking for fortified roofs to save them money.

“We’ve heard from many that are on the brink of having to sell,” Stoudt said. “Insurance costs impact deals at all levels.”

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Erica Toriello, director of homebuyer services at Peoples Housing+, an affordable housing group, said the group’s pool of potential homebuyers has shrunk, and the organization needs to find more and more subsidies to offset rising costs. Many of the group’s homeowners, often people with moderate to low incomes, are seeing monthly payments double or more.

“I had people in the pipeline who were waiting for a home…they were previously approved and now are not,” Toriello said. “I don’t foresee a time in the near future where they qualify if things don’t change.”







070624 Soaring home costs

A lot to learn

The relationship between rising insurance costs and the housing market is murky. Kelley Pace, director of LSU’s Real Estate Research Institute, said there’s a “litany of factors” underpinning housing values. But there is evidence that south Louisiana’s market is feeling the impact.

“There’s no question insurance is a problem,” Pace said. “I don’t think there’s any scenario when you say it’s good for housing prices.”

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Pace said people on Citizens are likely seeing “materially lower” appreciation in home values than people in the private insurance market. Flood insurance costs are also rising steeply, making for a “one-two punch” for homeowners and buyers.

A report last year by S&P Global found that as climate change has made insurance more expensive, buyers are being put in a precarious position with the combination of high mortgage rates and insurance costs. The report said that it’s “reasonable to think” that increasing premiums could put downward pressure on home prices.

And a working paper published last month by the National Bureau of Economic Research found areas with greater climate risk are seeing insurance prices soar more quickly. The paper, which analyzed escrow payment data, predicted rising insurance costs would eventually affect housing prices and reduce demand for at-risk properties.

Benjamin Keys, a professor at the University of Pennsylvania’s Wharton School and one of the paper’s authors, said in an interview it is “highly likely” that insurance is playing a part in the housing market’s distress, though he said he is working on more research to better understand the dynamic.

New laws take effect

Louisiana officials hope that a series of bills championed by Insurance Commissioner Tim Temple and signed by Gov. Jeff Landry will stem the rising costs. Those bills make it easier for insurance companies to drop policyholders and raise rates; Republican leaders like Temple and Landry argue the changes will invite more competition into the market. Affordable housing advocates and Democrats have panned the strategy, saying it will push more people onto Citizens, where they’ll pay higher premiums.

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John Ford, a spokesperson for the Insurance Department, said real estate agents consistently tell Temple that insurance costs have become a “significant factor” in the housing market.

“The real estate market is a good example of why we need to build on the recent passage of property insurance reform and continue working to make insurance more available and affordable in Louisiana,” Ford said.

Once an afterthought when buying a house, the cost of insurance is becoming a more central consideration.

Mirambell, the broker, said clients who have been with their insurance carrier for decades fear they’ll be dropped. One client is worried about getting back into the market with an 11-year-old roof. Most insurers either won’t cover older roofs, or charge exorbitant rates to insure them because of the risk they pose.

Many sellers are opting to proactively replace their roofs, or are doing so as part of sales negotiations, to offset the buyer’s insurance hit.

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Colleen Rothman, a writer living in Gentilly Terrace, moved back to Louisiana with her family in 2018 after a decade in Chicago. Last year, she returned home after the Krewe of Red Beans parade on Lundi Gras to find a notice in the mail saying her insurer, United Property & Casualty, was being liquidated.

Since then, her home insurance costs have soared from $1,600 a year to over $6,300.

Rothman said she loves living in New Orleans, near family, but that the thought of moving away has crossed her mind as living here becomes more difficult. But selling now is also daunting.

“Right now if we were to list our home and someone were to pull a quote on insuring a 6-year old roof, I’m not sure we would find a buyer,” she said.



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How a sinkhole caused a whirlpool and formed Louisiana’s deepest lake

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How a sinkhole caused a whirlpool and formed Louisiana’s deepest lake


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While Louisiana’s largest lake, the Toledo Bend Reservoir, spans 1,200 miles of shoreline, the state’s deepest lake only spans 1,125 acres.

Lake Peigneur is the deepest lake in Louisiana, with a depth measuring approximately 200 feet.

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Lake Peigneur is a brackish lake, meaning it contains saltwater but has less salinity than seawater, located in New Iberia Parish in South Louisiana.

How did Lake Peigneur become the deepest lake in Louisiana?

Lake Peigneur was not always considered the deepest lake in Louisiana, as it was only a 10-foot-deep freshwater lake 40 years ago.

On Nov. 20, 1980, an oil rig crew was attempting to free a 14-inch drill bit when they heard popping noises and the rig began to tilt. Shortly after the crew abandoned the rig and headed for shore, the crew watched the 150-foot oil rig disappear into the 10-foot-deep lake.

Soon, a whirlpool formed in place of the oil rig. The whirlpool grew rapidly until it was able to suck up nearby boats, barges, trees, a house and half an island.

At the same location of the oil drilling site, there was also a salt mine, and when the whirlpool formed after the oil rig collapsed, the mine began to fill with water. As the whirlpool grew, water was able to enter the mine at such a force that it caused a geyser to spew out of the mine’s opening for hours until the lake was drained.

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After the lake was emptied, the Delcambre Canal began to flow backward, marking the only time in history that the Gulf of Mexico flowed into the continental U.S. This backflow continued until the entire mine and lake were filled with water, except now the lake was filled with saltwater, according to an article published on Louisiana Tech Digital Commons.

Can you swim in Lake Peigneur?

Before the oil rig and salt mine accident, Lake Peigneur was a popular spot for fishing and recreational activities. However, since the lake is almost entirely surrounded by private property, visitors will have to enter the nearby Rip Van Winkle Gardens in order to get a closer look, according to Atlas Obscura.

While there are no reports indicating the lake is unsafe, the lake is not exactly developed for public access. However, there are things to do around Lake Peigneur, like visiting Rip Van Winkle Gardens on Jefferson Island, or visiting Avery Island to tour the Tabasco Factory.

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Presley Bo Tyler is a reporter for the Louisiana Deep South Connect Team for USA Today. Find her on X @PresleyTyler02 and email at PTyler@Gannett.com



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Officials confirm Pensacola Beach residue is algae, not oil from Louisiana spill

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Officials confirm Pensacola Beach residue is algae, not oil from Louisiana spill


PENSACOLA BEACH, Fla. — A local fisherman raised concerns about the substance now coating Opal Beach, citing a recent oil spill off the coast of Louisiana.

WEAR News went to officials with the Gulf Islands National Seashore and Escambia County to find out the cause.

They say it’s not related to an oil spill, but is in fact algae.

The Marine Resources Division says they can understand beachgoers’ concerns, and hope to raise awareness.

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“You don’t even want to get near it because it’s so gooey and sticky,” local fisherman Larry Grossman said. “It was accumulating on my beach cart wheels yesterday, and it felt like an oil product.”

Grossman messaged WEAR News on Monday after noticing something brown and oozy in the sand. He says it started showing up by Fort Pickens and stretched down to Opal Beach.

Grossman said a park service employee told him it could be oil from a recent spill in Louisiana. So he took a message to social media, sparking some reactions and raising questions.

“it certainly didn’t seem like an algae bloom because I was in the water, I caught a fish and I put some water in the cooler to keep my fish cool and it almost looked like oil in it,” Grossman said. “I know some people think it’s an algae bloom, but it certainly smelled and felt and looked like oil.”

A Gulf Islands National Seashore spokesperson confirmed to WEAR News on Tuesday that the substance is algae.

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WEAR News crews were at the beach as officials with the Escambia County Marines Resources Division came out take samples.

“What I found here washed up on the beach is some algae — filamentous algae, single celled algae — that washed ashore in some onshore winds,” said Robert Turpin, Escambia County Marines Resources Division manager. “This is the spring season, so with additional sunlight, our plants, they grow in warmer waters, with plenty of sunlight.”

Turpin says this algae is not harmful.

He also addressed the concerns that this could be oil, saying he’s familiar with what oil spills look like.

He says he appreciates when people like Grossman raise the concerns.

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“The last thing in the world we want is something to gain traction on social media that is faults in nature that could harm our tourism,” Turpin said. “Our tourism is very important to our economy, and we want to give the right information out to the public so we all enjoy the beaches and enjoy them safely.”

Turpin says if you see something or suspect something may be harmful on the beach, avoid it and contact Escambia County Marine Resources.



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Louisiana Gov. Jeff Landry calls for amendment for teacher pay raises

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Louisiana Gov. Jeff Landry calls for amendment for teacher pay raises


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  • Louisiana Governor Jeff Landry proposed a constitutional amendment for permanent teacher pay raises.
  • Landry’s address also supported an eventual elimination of the state income tax.
  • The governor’s budget includes an $82 million increase for corrections services following recent tough-on-crime laws.
  • Landry advocated for doubling the funding for his LA Gator school choice program.

BATON ROUGE — Gov. Jeff Landry advocated for a constitutional amendment that would create a permanent teacher pay raise as well as an eventual elimination of the state income tax in an opening address to the Louisiana Legislature on Monday.

Landry pushed for the passage of Proposed Amendment 3 on the May 2026 ballot to free up money for teacher pay raises.

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He said the amendment would pay down longstanding debt within the Teachers’ Retirement System of Louisiana and enable the state to afford a permanent increase in teacher income. The proposed increases are $2,250 for teachers and $1,125 for support staff.

“With a ‘yes’ vote, we can strengthen the retirement system, improve their take-home pay, and guess what? We can do it without raising taxes,” Landry said.

A bill proposing the elimination of the state income tax, which takes in about $4 billion annually, was pre-filed earlier in the year by Rep. Danny McCormick, R-Oil City. Where the money will come from to supplement the loss is currently unclear.

McCormick said in an interview with the LSU Manship School News Service that to encourage more young adults to stay in Louisiana, “we need to do away with the state income tax.”

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“This is a conversation piece that hopefully we can figure out where to make cuts in the government so we can get the people their money back,” McCormick said.

But Senate President Cameron Henry, R-Metairie, said at a luncheon at the Baton Rouge Press Club that if the Legislature “can be disciplined” this session, residents could anticipate a 0.5% decrease in state income tax during next year’s session. He also said bigger tax cuts have to be planned over a longer budget cycle.

Within education changes, Landry commended the placing of the Ten Commandments in classrooms, approved by the Louisiana Supreme Court in a decision handed down last week.

“You have staked the flag of morality by recognizing that the Ten Commandments are not a bad way to live your life,” Landry said. “Students who don’t read them will likely read the criminal code.”

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Landry’s budget proposed an $82 million increase for corrections services following 2024 tough-on-crime legislation that eliminated parole and probation, increased sentencing and encouraged harsher punishments.

Landry directed his criticism toward the New Orleans criminal justice system, which he feels is lacking accountability, especially in courtrooms.

“Judges hold enormous power, but they are not social workers with a gavel,” he said. “They are the final gatekeepers of public safety.”

The Orleans Parish criminal justice system relies on state and local funding stemming from revenues from fees imposed on those arrested, according to the Vera Institute. Landry said the state spends twice as much on the Orleans system as it does in East Baton Rouge Parish, the largest parish in the state.

“Being special does not mean being exempt from accountability,” Landry said.

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Overall, Landry pushed for fewer and different ideas compared to the sweeping agenda he laid out at the start of previous legislative sessions. Henry mentioned at the Baton Rouge Press Club that the governor would like for this session to be a “member-driven session instead of an administrative session.”

Landry spoke only in general terms about his proposal for more funding for LA Gator, his program to let parents use state money to send their children to private schools.

“We must find a path so that the hard-earned money of parents follow their child to the education of their choice,” he said.

He has proposed doubling funding for the LA Gator program from $44 million a year to $88.2 million. The likelihood of this occurring is yet to be seen, as prominent lawmakers such as Sen. Henry are hesitant to approve an increase in funding.

Landry similarly did not mention carbon capture projects, despite the issue gaining traction from affected parish residents and lawmakers.

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House Speaker Phillip DeVillier, R-Eunice, told the Baton Rouge Press Club last week that 22 bills have been filed in the House that he would consider “anti-carbon capture.”

Landry also cited data centers and other giant industrial development projects and touted his administration’s success in bringing more jobs to Louisiana and in helping to lower insurance premiums over the past year.

“May we continue to employ courage over comfort, and if we do, there is really no limit to what we can do for Louisiana,” Landry said.



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