New Orleans is a city with soul in every sense — from the music and food to the culture and the grit of the resilient people who keep it all alive. But that soul is under pressure. From skyrocketing utility bills to stagnant wages, from unaffordable insurance to rising property taxes, the middle class in New Orleans is being squeezed harder than ever.
Behind the financial stress is a structure designed to keep people struggling. And if we don’t talk about what’s happening, we risk becoming a city that only the wealthy — or the desperate — can afford to live in.
Housing Is Still Out of Reach
As of January 2025, the median home price in New Orleans is $330,000, according to Bankrate. While that’s a slight decrease from 2024, it still puts homeownership out of reach for many middle-class families — especially when combined with today’s interest rates.
At 6.5–7% mortgage rates, a $330,000 home means monthly payments well over $2,500 including insurance and taxes — a sharp rise from the low-rate pandemic years.
Insurance Is Breaking Budgets
Homeowners insurance in Louisiana is among the most expensive in the nation, largely due to increased climate risk and insurers fleeing the state. The average annual premium now sits at $4,135, per Ramsey Solutions.
Flood insurance is often mandatory and adds thousands more per year. For many homeowners, insurance premiums now rival their monthly mortgage — with no guarantee the policy will still exist next year.
Utilities: Death by a Thousand Fees
Entergy
Electric bills in New Orleans have spiked in recent years. As of March 2025, the average residential electricity bill is $145.97 for 1,000 kWh, according to Entergy New Orleans.
With summer heat waves and limited energy alternatives, utility costs have become another unmanageable burden — one you can’t opt out of.
Sewerage & Water Board (SWBNO)
Then there’s the Sewerage & Water Board of New Orleans, a source of frustration for decades. As of 2024, most customers saw a 10% increase in their monthly bill — roughly $12 extra per month, or about $90–$110/month total depending on usage (Axios, SWBNO).
Add to that ongoing issues like inaccurate smart meter readings, boil-water advisories, and a system that still loses more water than it delivers, and it’s easy to see why residents are angry.
Wages Are Stagnant — and Lagging Behind Costs
While everything else is going up, wages in New Orleans are not keeping pace.
• As of May 2023, the average hourly wage in the New Orleans-Metairie area was $27.34, compared to the national average of $31.48 (BLS).
• Statewide, wages have increased, with an average hourly rate of $33.05 as of April 2024 (Louisiana Workforce Commission) — but much of that growth is not reaching service-based sectors in New Orleans.
The Job Market Is Recovering — But Not Equally
The city added 7,600 jobs between February 2024 and February 2025, per New Orleans CityBusiness. But most of that growth came in sectors like leisure and hospitality, which traditionally offer low wages and limited benefits.
It’s a recovery — but not one that restores the purchasing power of the middle class.
Property Taxes Are Quietly Creeping Up
As property values rise, property tax assessments follow — even if services like drainage, roads, or policing don’t improve. For many middle-class homeowners, that means higher annual bills with no added value to justify them.
Meanwhile, large commercial developers continue to benefit from tax breaks and subsidies, leaving residents to carry more of the burden.
Who Can Afford to Stay?
Let’s be honest — New Orleans is becoming a city where the middle class is being priced out. If you can afford $4,000 a month in combined bills, maybe you can make it work. If you can’t, you either go into debt, move out of the parish, or live in constant financial stress.
This isn’t sustainable — and it’s not accidental. It’s the result of policy choices, corporate monopolies, failed infrastructure, and a tax system that rewards the rich and punishes the rest.
If New Orleans wants to remain more than a backdrop for tourists and developers, we need:
• Utility rate accountability
• Housing affordability enforcement
• Wage growth tied to cost-of-living realities
• Local investment in the people who keep the city running
The soul of New Orleans is its people. And right now, the people are being pushed out.
