Baton Rouge, Louisiana Real Estate Market 2026: Score 44, But Momentum Is Turning

The Baton Rouge, Louisiana real estate market scores 44 out of 100 on the PropertyIQ Score as of February 28, 2026. That sits below the state average of 50, meaning the model expects Baton Rouge to slightly underperform the typical Louisiana market over the next few years. But the Baton Rouge real estate market has one notable data point working in its favor: the score has risen 4 points over the last three months, up from 40 in November 2025 and from a low of 32 a year ago.

For buyers with patience and investors looking for value rather than momentum, Baton Rouge presents a contrarian case worth examining.

What the PropertyIQ Score Says About Baton Rouge

The PropertyIQ Score is a forward-looking prediction of how a market is likely to perform over roughly the next three years relative to its state, on a 0-to-100 scale updated monthly. It is built from the market's demand signal: home-value momentum, days on market, and price-cut share. A score of 50 represents the Louisiana state average. Baton Rouge at 44 means the model expects it to underperform the typical Louisiana market, which is the honest assessment.

The 12-month trend tells a more nuanced story. Baton Rouge scored 32 in April 2025, 38 in August, 40 in September, 37 in December, and 44 in February 2026. That is a gradual but meaningful recovery from a trough. The score has not yet crossed 50, but the direction of travel has shifted upward. The confidence level on the score is A at 100%.

Baton Rouge Louisiana Home Prices and Market Activity

As of February 2026, the median listing price in Baton Rouge is $299,950 per Realtor.com. The Zillow home value estimate for the metro stands at $240,561 as of January 2026. The gap between listing price and home value reflects a market with significant negotiating room for buyers.

Year-over-year home value appreciation is just 1.1% as of February 2026. That is barely above flat. Month-over-month, listing prices actually declined 2.2% in February, which adds to the buyer-friendly picture.

Key market activity metrics as of February 2026:

• Days on market: 88 days (the slowest of any market in this batch)
• For-sale inventory: 2,986 active listings
• Inventory growth YoY: up 6.5%
• New listings YoY: down 2.0%
• Pending ratio: 0.37
• Price cut rate: 17.5%
• Price per square foot: $163
• Demand score: 25 out of 100
• Sale-to-list ratio: 98.7% (buyers winning on price negotiations)

The demand score of 25 out of 100 is the defining number for Baton Rouge. It is one of the lowest demand readings in the data set and explains why the PropertyIQ Score sits at 44. There are almost 3,000 homes for sale in a market where only about one-third of listings are converting to pending contracts.

For buyers, this means genuine negotiating leverage. Homes are sitting for 88 days on average. Sellers are cutting prices on nearly 18% of listings. The sale-to-list ratio of 98.7% means buyers are consistently purchasing below list price.

Baton Rouge Economic and Demographic Data

The Baton Rouge metro population was 871,379 as of 2023 Census data. Median household income was $68,910. Median age is 36, which is younger than many comparable metros and suggests a population that will need housing for decades.

Unemployment was 3.9% as of November 2025, below the national average and a positive signal for the local economy. The homeownership rate is 69.14%, one of the higher rates in the Southeast, which means the renter pool is smaller relative to the broader population.

Home sales were up 10.2% year-over-year as of February 2026, a bright spot buried in otherwise soft metrics. More homes are changing hands than a year ago, even if they are taking longer to sell and closing at or below list price.

Baton Rouge as a Buyer's Market: What the Data Supports

A score of 44 is not a reason to avoid a market. It is a reason to approach it with specific expectations.

The Zillow home price forecast for Baton Rouge as of December 2025 is -0.4% over the next 12 months. That is a modest projected decline. The five-year home value appreciation in Baton Rouge is just 7.12%, compared to 39-46% for Ohio markets in the same time frame. This is a market where appreciation has been slow and is expected to remain modest.

The Zillow rent index for Baton Rouge stands at approximately $1,344/month as of December 2025. With a median home value of $240,561, that produces a rent-to-price ratio that makes the buy-versus-rent calculation worth running. New construction sales were 106 units in November 2025, indicating some builder activity that adds to the supply side.

For buyers looking to negotiate, the data is supportive. For investors expecting rapid appreciation, Baton Rouge is not the right market in 2026.

Why the Score Is Rising

From a low of 32 in April 2025 to 44 in February 2026, the Baton Rouge PropertyIQ Score has recovered 12 points over 10 months. The 10.2% year-over-year sales growth is the primary driver. More homes are closing. The pending ratio has not recovered to healthy levels, but the volume of completed sales has improved.

The 3.9% unemployment rate is a supporting factor. Baton Rouge's economy draws from petrochemicals, healthcare, higher education (LSU, Southern University), and state government employment. The employment base is stable even if it does not generate the kind of income growth that drives housing appreciation in technology-heavy markets.

What Buyers Should Know About Baton Rouge in 2026

Baton Rouge is a buyer's market in the clearest sense. Homes are sitting longer. Sellers are reducing prices. The sale-to-list ratio of 98.7% confirms buyers are successfully negotiating below asking price on most transactions.

For primary residence buyers: Baton Rouge is affordable relative to incomes, with an income-to-buy threshold of $79,726 against a median household income of $68,910. That gap requires meaningful savings, but it is not out of reach. The 88-day average time on market means there is no pressure to rush.

For investors: The 7.12% five-year appreciation and flat one-year outlook make Baton Rouge a cash flow case, not an appreciation case. The rent index of $1,344/month against a median home value near $240K is a ratio worth modeling. However, the demand score of 25 and 3,000-plus active listings suggest that vacancy risk is real. Tenant demand is lower here than in stronger scoring markets.

The Bottom Line

The Baton Rouge, Louisiana real estate market scores 44 out of 100 on the PropertyIQ Score as of February 28, 2026. The market is soft. Demand is low. Appreciation has been minimal. Home prices are expected to remain flat.

But the score is rising. Sales volume is up 10.2% year-over-year. Unemployment is below the national average. And for buyers with negotiating leverage, the data supports getting below asking price with time to be selective.

Baton Rouge is a buyer's market. The data says so clearly. Whether that translates to a good investment depends on your strategy, timeline, and risk tolerance.

See the full Baton Rouge PropertyIQ Score and compare it to other Louisiana markets at propertyiq.app. Free to use, updated monthly.