Nowadays, a popular question arises in US real estate, “Why are houses so cheap in Laurel, Mississippi? If you are also wondering why, here is a guide. Laurel, Mississippi, is a small town with low property taxes and few building restrictions. Besides, this area’s cost of living is lower because of the climate, historical location, fewer job opportunities, etc.
The statistics show that the median list price for a home in Laurel is around $202,500, and the per-square-foot cost is $102. However, the typical home value price surprisingly decreased by 1.6% last year. If you want to invest or plan to buy a new house in Laurel, now is the best time. So, let’s check out the real estate market trend, reasons for lower costs, and other related info.
Real Estate Market Trend in Laurel, Mississippi
Simply put, the Real Estate Market trend in Laurel, Mississippi, is bullish. Nowadays, housing prices in the area are categorized for affordability. Lower cost of living than national averages is the main reason behind the sale. Besides preserving historic homes, a stable economic landscape and a strong sense of community attract many property dealers here.
Over the years, the Real Estate Market Trend in laurel has been relatively moderate compared to other metropolitan cities and small towns. However, overall sales and costs have dramatically shifted in recent years for various reasons. As of 2023, data shows home values in Mississippi rose by 28% in the last five years. On the other hand, home sales in this location decreased by 16.5% in September 2023. The higher mortgage rate in two decades may be the reason behind this fall.
Experts say Mississippi currently trends as a sellers market. It is predicted that the number of home sellers will rise by 2024. Mortgage interest rates were already reduced by 7.35% in November 2023, and this rate will be steady in the middle of 2024. That means mortgage demand rose, eventually easing inflation and bringing back the house seekers.
10 Reason Why Are Houses So Cheap in Laurel, Mississippi
There are several reasons behind the affordable house prices in Laurel, Mississippi. First is the low cost of living and population in this area, which affects the quality of life. Similarly, there are other reasons available, discussed below.
1. Cost of Living
As mentioned, this is the primary reason behind cheap property prices in this area. Locals enjoy a more budget-friendly lifestyle compared to the national average. From groceries to healthcare, everything is more reasonable in Laurel, Mississippi. However, It also means you cannot expect a luxurious, modern, or well-infrastructured lifestyle in this area. Instead, you can witness poor infrastructure, economic growth, and fewer job opportunities.
2. Slow Economic growth
Compared with other cities, Laurel has more stable economic growth. Indeed, the town has yet to witness the same level of development as other metropolitan cities. However, the city has experienced some boom in recent years. Still, the uptrend is below average and does not affect its housing market much. The report says Laurel’s economy runs on agriculture and few healthcare and manufacturing locations.
3. Quality of Life
The overall quality of life also influenced the affordability of homes in Laurel. Locals enjoy a more calm and laid-back lifestyle surrounded by neural beauty. The city also has a rich history and cultural heritage, preserving most of the property here. This is also the reason for poor infrastructure and the need for higher technologies. However, the city provides basic amenities like parks, hospitals, cultural events, restaurants, shopping places, etc. You may not find modern facilities in Laurel, but you can expect a comfortable life after retirement.
4. Real Estate Market Dynamics
In larger cities, real estate prices experience rapid growth in the short term. But Laurel, Mississippi, is different. Over the years, this urban town has seen steady demand in the housing market. It prevents a drastic spike in housing prices, making the houses affordable for different buyers.
5. Community Values
Over the years, the city has been known for its warm Southern charm and strong community values. Locals love peace and stay close to their culture. This atmosphere makes Laurel welcoming for other communities looking for a calming society without spending a high price tag.
6. High Crime Rates
Home seekers always search for places safe for their family and friends. So, safety is their primary concern before investing in a new home. Laurel belongs to a robust and peaceful community close to their culture. However, the report shows the city witnesses higher crimes than its surrounding locals. This is another reason sellers won’t demand higher costs due to harmful incidents happening here. Still, crime rates have reduced in past years as people move to laurel, leading to better law enforcement in this area.
7. Natural Disasters and Insurance costs
Natural disasters like floods and hurricanes are common in Laurel, Mississippi. That’s why local sellers keep their home prices lower than other cities. However, the government takes vital measures to address these problems. Still, many investors need more time to invest in Laurel’s housing market due to frequent damages. Besides, there are higher insurance expenses in this city. All these reasons make houses so cheap in Laurel, Mississippi.
8. Historical Heritage
The city is also rich with historical homes and neighborhoods. This heritage influenced preservation efforts from the government, keeping the housing market below average. Buyers can find more affordable homes with cultural values and history.
9. Education and Employment Opportunities
Laurel’s economy is mainly based on agriculture, healthcare and manufacturing. The city lacks big institutions and universities, leading students to move to big cities. Besides, the city’s infrastructure is poor due to the lack of big neighborhoods. As a result, people find fewer job opportunities compared with developed areas.
10. Rural Location
There is no doubt that laurel comes under the rural location of the city. More infrastructure, an education system, job opportunities and amenities must be needed. Younger People rarely stay in these areas due to low-income resources. Besides, the population of laurels reduces every year by 0.23%. With these disadvantages, sellers keep the houses affordable for buyers.
How’s the Resale Value in Laurel, Mississippi in 2024?
Various factors are involved to ensure the resale value of homes in this city. However, experts predict many theories about the laurel market in 2024.
In the past, buyers turned away from the market due to high mortgage rates, which hit 7.79%. But this year, the interest rate was reduced, attracting new buyers who want to move to a cheap place. In September 2023, 12.3% of new homes were purchased, the highest ever. Builders offer $30,000 worth of concessions to encourage buyers to settle without breaking the bank.
These dynamics signify that Laurel’s builders and sellers will compete for more buyers this year. December 2023 report shows the Median listing price for Laurel’s houses is $202.5K. Experts believe home prices will rise continuously until supply and demand dynamics change.
Did Hgtv’s Home Town Over Inflated Housing Prices in Laurel?
It is impossible to confirm either HGTV’s Home Town solely overinflated housing prices in Laurel. Still, there are some boosts reported on specific properties in the city. This TV show, released in 2016, shares the experience of hometown living in Laurel.
The show may attract out-of-town buyers seeking new homes in historic downtown areas. Many real estate agents reported housing sales in Laurel Boost two to three times after this show. It mainly happens on properties that are featured on the TV.
Still, it should be noted that Laurel’s Realty’s housing market followed an upward trend even before the show was released. Low inventory, cost of living, and a growing economy are the reasons behind this spike. Overall HGTV’s Home Town show may influence the demand for city houses. It’s not the only reason.
What’s It Really Like to Live in Laurel Mississippi?
Laurel, Mississippi is a small city with a population of 16,702. Whether you like the society depends on personal preference. Still the city is known for its charm, oak-lined streets, and historic homes. Some say, laurel is a good place with a strong community and friendly people. But there is a fact, the city has low infrastructure, education system and amenities. The city goes through a steady economic growth which needs a few more years to reach standard level.
What is the Average Income in Laurel Mississippi?
As of 2023, average household income in laurel, mississippi is $63,597. This city has a poverty rate of 32.56%. Still there are many estimates according to different sources.
What is the Cheapest Part of Mississippi to Live in?
According to sources, Meridian is the cheapest city in Mississippi to live in. This part of the town has an average home value of $111,012. Cost of living is also 14% lower than the national average.
Where Can I Find Farm Houses for Sale in Laurel Mississippi?
To find Find Farm houses for sale in Laurel Mississippi contact a real estate agent or company and ask for the location.
Undoubtedly laurel is a demanding city to settle with a new home at minimum cost. The historical charm, oaked line streets, and fresh atmosphere definitely lead a peaceful life. People also find the society more cultural and friendly than its surrounding area. However it is vital to do your own research before investing in properties.