Cost of Living in New Orleans, LA

With a cost of living index of 93, New Orleans, LA is slightly more affordable than average. Living here is 7% cheaper than the national average and 19% above the Louisiana state average of 74. As a major city with a population of 376,035, New Orleans offers a wide range of housing options, employment opportunities, and urban amenities.

Housing costs are the biggest factor in New Orleans's cost of living. The median monthly rent is $1,211 (8% below the US median of $1,319), and the median home value sits at $296,400 (3% below the national median of $304,900). At current prices, the median home costs roughly 5.4x the median household income — a stretch for many buyers, though not uncommon in today's market.

The median household income in New Orleans is $55,339, which is 26% lower than the national median of $75,149. Residents spend roughly 26% of household income on rent. This is near the 30% threshold that financial experts generally consider the upper limit of affordability. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Climate is another factor for anyone considering a move to New Orleans. The area sees an average annual temperature of 70.9°F, with summers averaging 84°F and winters around 56°F. Annual rainfall totals 60.1 inches spread over roughly 113 days. The mild climate is a draw for many residents and keeps utility costs moderate year-round.

Everyday prices in the New Orleans-Metairie, LA (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 6 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.