What Is the Average Cost of Living in Louisiana in 2025?

Considering a move to Louisiana? With its vibrant culture, rich history, and diverse economy, Louisiana attracts many newcomers seeking a good quality of life. In 2025, the average cost of living in Louisiana is about 7–8% below the national average.

Therefore, it stands as an affordable state compared to many others. This relative affordability comes with some regional cost variations. Overall, it offers a balanced living experience. Here’s a closer look at what expenses to expect across housing, utilities, groceries, and more in Louisiana.

What Is the Average Cost of Living in Louisiana?

Louisiana residents typically require an annual salary between $42,661 and $48,425 to sustain a comfortable middle-class lifestyle. This wage range considers housing, utilities, healthcare, food, and transportation costs.

Key monthly expenses include:

• Housing (Rent or Mortgage): Around $900–$1,068 per month, depending on city and unit size.
• Utilities: Approximately 21% cheaper than the national average, benefiting from low electricity rates.
• Groceries: Around 3-4% cheaper than average US prices, though inflation affects some staples.
• Healthcare: Slightly more expensive than national norms, with insurance premiums averaging $654 monthly.
• Transportation: Fuel and transit costs are about 5% lower than average, but vehicle maintenance is higher due to infrastructure challenges.

Housing and Rental Market in Louisiana

Louisiana’s housing market offers moderate costs, balancing affordability with regional demand. For those exploring the average cost of living in Louisiana, housing remains a key factor.

• Average rent ranges from $900 to $1,068 monthly.
• Median home prices fall between $212,000 and $259,100, varying by city.

Compared to regional peers:

• Mississippi’s median home price is significantly lower ($140,000–$170,000).
• Alabama’s home prices are similar but about 15% lower.
• Arkansas housing costs can be higher, especially in northwest urban centers.
• Texas and Georgia generally have higher median home prices ($256,000 and above).

Major metro areas such as New Orleans ($244,690 median home value), Baton Rouge ($229,310), and Lafayette ($221,661) reflect a range of prices attractive to various budgets. The housing stock is relatively ample, offering options for first-time buyers and renters alike.

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Utilities and Other Living Expenses in Louisiana

Louisiana enjoys significantly lower utility costs. The largest savings come from electricity bills.

• Electricity and utilities average about 21% less than the US overall.
• Mississippi utilities are 11% lower; Alabama’s are slightly above average.
• Transportation fuel costs are around 5% below the national average. However, vehicle operating costs are higher due to infrastructure issues.

Grocery costs remain about 3-4% below the US average. This is similar to neighboring states like Mississippi and Arkansas. Healthcare spending in Louisiana is approximately 2% above average, partially driven by higher insurance premiums.

Income and Job Market Overview in Louisiana

To live comfortably, the average cost of living in Louisiana requires an hourly wage of about $20.51. Or, an annual salary between $42,661 and $48,425 is necessary.

Compared regionally:

• Mississippi and Alabama, as neighboring states, have lower income requirements due to their lower cost of living.
• Arkansas demands a comparable or slightly higher income because of housing costs.
• Texas and Georgia require higher salaries, reflecting stronger economic hubs and pricier real estate.

Is It Worth It to Live in Louisiana?

Louisiana offers a competitive cost of living with distinct lifestyle perks:

• Lower housing and utility costs than in many states.
• Vibrant culture, food, and local amenities.
• Healthcare costs are a modest challenge but offset by affordable basics.
• Opportunities to enjoy both urban centers and quieter regional living.

While infrastructure challenges may add some extra costs, Louisiana remains attractive for those valuing affordability and cultural richness.

Regional Insights

Newcomers should note these locations:

• New Orleans offers dynamic urban living but with higher local costs.
• Baton Rouge and Lafayette provide more affordable housing options.
• Northern cities like Shreveport offer lower overall living costs.

Consider proximity to economic hubs for better job opportunities when relocating.

Final Thought on Louisiana’s Cost of Living

Louisiana’s average cost of living in 2025 remains about 7–8% below the national average. This makes it an affordable Southern state. Its moderate housing market, low utilities, and reasonable transportation costs balance higher healthcare expenses.

Compared with Mississippi and Alabama, Louisiana is slightly more expensive, yet it is still more affordable than Texas and Georgia. For those seeking value and culture, Louisiana ranks well in its regional cost of living.

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FAQs About Louisiana’s Average Cost of Living