U.S. Housing Market Conditions, First Quarter 2003: National Data

Monroe, Louisiana
Recent estimates by the Census Bureau as of July 1, 2002, indicate that population growth in the area remains low. Based on the 2000 Census, population in the Monroe metropolitan area increased by an average of 500 annually during the past decade.

Nonfarm employment averaged 74,200 for the 12 months ending February 2003, virtually no change over the same period a year ago. The service, government, and trade sectors are the largest sources of employment in the metropolitan area and include major employers such as Riverwood Paper Products, State Farm Corporation, Century Tel, and Chase Manhattan Corporation.

Construction is scheduled to begin in late 2003 on an Interstate 20 interchange at Ike Hamilton Road in West Monroe. The new interchange will reduce traffic congestion and provide easier access to new commercial developments in the area, including the Ike Hamilton Expo Center and supporting hotels, restaurants, and retail shopping facilities. The recent designation of Ouachita Parish as an urban Renewal Community (RC) provides significant tax advantages for businesses located in the RC census tracts and will be available through the end of 2009.

Since 1990 single-family construction in the metropolitan area has been relatively consistent, averaging approximately 410 single-family homes annually. However, multifamily building permit activity has been very slow, averaging only 40 units annually, until the past year.

Local sources indicate the sales market in the Monroe metropolitan area for both new and existing homes has remained strong since 2000 despite the slowdown in the economy. Low interest rates and continued household growth have kept demand up. The median sales price for a single-family home in the metropolitan area was $115,000 in 2002. During the first quarter of 2003 a total of 211 homes, both new and existing, were sold with a median sales price of $119,000. Most of the new home construction in the area is occurring in the unincorporated area of the Parish, especially north of the city of Monroe and north and west of West Monroe.

The rental market is currently in a relatively balanced condition with an estimated vacancy rate of 7.5 percent compared with 9 percent as of the 2000 Census. Rent increases during the past 5 years have been in the range of 2–3 percent annually. Although conditions are balanced overall, the market for affordable rentals remains tight. Occupancy rates in assisted rental developments are 95 percent and higher. Given the long waiting lists for assisted rental units, it is expected that the market will absorb the units currently under construction quickly.

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