Cost of Living in New Orleans, LA 2023

There's a reason so many top ten lists rank New Orleans, Louisiana, as a premier place to live, work, and play. It offers a stunning landscape with a party atmosphere and plenty of fun outside of the French Quarter. Plus, the unique vibe is a major draw if you want to savor more of the country without moving abroad.

The Big Easy offers all of the big-city amenities you could want, wrapped up in Southern charm. It's also a quirky place to live where you may still hear Louisiana Creole and benefit from the fantastic food, music, and architecture New Orleans is celebrated for.

New Orleans is surprisingly affordable, considering its desirable location along the Gulf Coast and reputation as a world-class city. While it's not the cheapest place to live, it feels like a half-off sale compared to New York City and other metropolises. It's easy to see why people choose to rent an apartment in New Orleans for the lifestyle, fun, and backdrop.

Working in New Orleans comes with its share of ups and downs. Unemployment is higher in the city at 4.3% compared to the national average of 3.6%. The good news is the job market has increased 7.2% over the last decade and is looking up.

However, New Orleans could be a big win for ambitious college graduates or those looking to break into tourism or entertainment. Production companies hire locals to help on films and TV shows due to generous industry tax breaks in Louisiana. In addition to the healthy tourism sector, major employers in New Orleans include Entergy Corp, Ochsner Health System, and one of the busiest ports in the nation.

New Orleans is growing at 1.02% annually, with newcomers looking to live in a vibrant city with a rich history. The cost of living in New Orleans is more expensive than other cities in Louisiana, but a bargain compared to Austin or Los Angeles. Don't worry; we have all the information to help you determine if moving out of state or just locally from Louisiana is a good fit for you and your finances.

New Orleans Housing Costs

Just like any big city, housing costs will account for the majority of your expenses in The Big Easy. You can still find cheap apartments in New Orleans and leverage its lower cost of living to make it work for you. According to our Apartment List Renter Migration Report, people are moving to New Orleans from Baton Rouge, which is less expensive than New Orleans and the more expensive Houston and New York.

Some of the major draws to New Orleans are Mardis Gras and the French Quarter. The city is popular with college students attending The University of New Orleans, Tulane University, and Loyola University New Orleans. Locals and visitors alike root for pro and semi-pro sports teams like the Saints, Pelicans, and Jesters.

New Orleans may be big on fun and entertainment but isn't seeing the same rate of growth and development as cities like Houston and San Antonio, which could help keep rents low. With that said, New Orleans rents are up 2.1% compared to this time last year. Its rent growth has already outpaced the state average of -1.6% and the national average of 3.0%. Currently, the average rent in New Orleans is $1,018 for a one-bedroom apartment and $1,208 for a two-bedroom apartment.

However, before you start apartment hunting in New Orleans or looking for a move-in special, you need to determine how much rent you can afford. Let's look at some of your daily and monthly expenses.

New Orleans Transportation

It seems like there's a party every night in New Orleans, even when Mardis Gras isn't rolling through town. Concerts, festivals, historic tours, markets, shopping, and the Arts District create bustling energy in the city during the day, while pubs and venues hop with activity throughout the night.

Make sure you budget for transportation accordingly to see everything New Orleans has to offer. Single adults should expect to spend $5,477 on transportation annually. If you are a family with two full-time employed adults and a child, you should expect to pay $14,484 per year to get around and enjoy The Big Easy. To get an idea of what you'll pay at the pump, a gallon of gas in New Orleans costs $3.24 compared to the national average of $3.78 per gallon.

Depending on the neighborhood you pick, you might not need a car to soak up the New Orleans lifestyle. Many locals forgo a set of wheels altogether and rely on a combination of rideshares and public transportation. New Orleans Regional Transit Authority (RTA) connects the city by bus, streetcar, and ferry. Fares start at $1.25 per ride with free transfers, while monthly "Jazzy Pass" fares are $45 for 31 days.

New Orleans Food Costs

If you want to enjoy famous New Orleans cuisine, including traditional jambalaya, you'll need to set your budget accordingly. According to the MIT estimates, a single full-time employed adult that cooks their meals (including snacks) spends approximately $3,926 per year on food in New Orleans. For a family of two adults and two children, that number rises to $11,564 per year. To get an idea of prices at the store, you'll spend $4.52 for a gallon of milk compared to the national average of $3.87.

When you live in New Orleans, expect to spend at least $20 on a meal at an inexpensive restaurant without any extras like drinks and appetizers. To enjoy a three-course dinner for two people at a mid-range restaurant, you plan on spending $80 on average.

New Orleans isn't the most affordable place for dining out, but it can be budget-friendly. Street food vendors have their mouth-watering dishes and serve up The Big Easy's iconic dishes.

New Orleans Healthcare Costs

No matter where you live, healthcare is a significant expense that you shouldn’t overlook. MIT combines data from the Bureau of Labor Statistics and the Agency for Healthcare Research and Quality to determine the typical health expenditure for a single full-time working adult. In New Orleans, this totals to $3,274 per year. For a family of two adults and a child, your cost rises to $9,525 per year.

New Orleans Utilities

Consider your utilities and plan for both humid heat and rainy days. There are about 59 rainy days and 64 inches of rain a year in The Big Easy, which is more than Seattle. A basic utility bill, including electricity, heating, cooling, water, and garbage for a 915 sq ft apartment, averages out to $186.11, which is higher than other parts of the country, like Houston. Add Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) and get connected in your New Orleans apartment for another $71.29, totaling $257.40 a month.

Fitness and Entertainment

If you want to stay fit and enjoy the gym, plan to spend $61.29 on monthly membership fees. Finding an apartment complex with an on-site fitness center could trim your costs and allow more flexibility in your budget. If you love going to the movies, you'll need $12 per ticket. Plan to spend more if you want to hit the concession stand.

Other Expenses to Consider in New Orleans

Louisiana has high sales taxes. However, the state's income tax rate is roughly equal to the national average, and New Orleans doesn't charge extra local income taxes. Car insurance rates are also high in New Orleans, making affordable public transportation an even more attractive option.

There is an upside to the taxes in New Orleans, however. If you're interested in homeownership, Louisiana offers a generous homestead exemption, which reduces the taxable value of owner-occupied properties by $7,500 in assessed value. Information from real estate indices shows that median home prices in New Orleans are $329,45, far cheaper than most metropolitan cities.

What Salary Do I Need to Live in New Orleans?

You'll need the right salary to live the lifestyle you want to live in New Orleans while covering your rent. A good rule of thumb is to use the 30% rule to rent an apartment, which gives you a reasonable estimate of the salary needed for the cost of living in New Orleans. Ditching the car or finding a roommate also makes a positive impact on your living expenses.

• If you are renting an average-priced one-bedroom apartment in New Orleans, your annual salary should be around $40,720 or higher.
• If you are renting an average-priced 2-bedroom apartment in New Orleans, your annual salary should be around $48,320 or higher.

Still unsure how much rent you can afford for a New Orleans apartment? Try using a rent calculator.

Now that you have a good idea of what kind of salary you need to live in New Orleans, you should also consider the "living wage," or the minimum amount of money required to live above the poverty threshold. For example, the minimum wage in New Orleans is $7.25 per hour, but the city's living wage is actually $16.68 per hour.

Remember, those figures don't take your student loan payments, dining out, nightlife, and emergencies into account. You also won't save much or be able to travel on a whim. According to the U.S. Census Bureau, the estimated median household income during the end of 2022 was $45,594 a year in New Orleans, or approximately $21.92 an hour.

If you shoot to hit that median income and have a roommate or look in less popular neighborhoods for an apartment, you should be in good shape. However, if you want to live solo in the heart of the city and enjoy an active lifestyle, make sure you find a salary that aligns with your goals. If living in the heart of the city is a little too pricey for you, check out our round-up of cheap apartments in New Orleans.

Final Thoughts

Now that you have all the information you need about New Orleans' cost of living, you can start apartment hunting in the Big Easy. Kick off your New Orleans apartment search today with this quiz!

FAQs: Cost of Living in New Orleans

How expensive is an apartment in New Orleans?

Like most of the country, rents in New Orleans are on the rise. A one-bedroom apartment in New Orleans costs $1,018. A two-bedroom apartment in New Orleans cost $1,208 a month.

What is the cheapest rent in New Orleans?

Currently, the cheapest rent in New Orleans is for a one-bedroom apartment. You can expect to pay an average of $1,018 a month in rent. Comparatively, a two-bedroom apartment is $1,208 per month.

How expensive is it to live in New Orleans?

In New Orleans, the rent averages $1,018 per month for a one-bedroom apartment. Transportation costs $5,477 a year for a single adult. Food costs about $3,926 a year in New Orleans for meals and snacks. Eating out will cost $20 for an inexpensive meal, and $78 for a three-course dinner for two.

How far is New Orleans from Baton Rouge?

New Orleans to Baton Rouge is 81.2 miles via I-10E. It takes one hour and nineteen minutes to drive from New Orleans to Baton Rouge. It takes almost an hour to take the FlixBus from New Orleans to Baton Rouge.

How far is New Orleans from Houston?

Houston to New Orleans is 347.7 miles via I-10E. It takes just under six hours to drive from New Orleans to Houston. It takes about seven hours to take the Megabus from New Orleans to Houston. A plane ride between New Orleans and Houston takes just over an hour.

How far is New Orleans from Atlanta?

New Orleans to Atlanta is 469.5 miles via I-10 W, I-65 S, and I-85 S. It takes just over seven hours to drive from New Orleans to Atlanta. Greyhound bus service is available between New Orleans and Atlanta and takes about eleven hours.

What is the population of New Orleans?

According to the U.S. Census Bureau, the population of New Orleans was 367,971 in 2022. The entire population of the state of Louisiana is 4,590,241.

What is a good salary in New Orleans?

According to the U.S. Census Bureau reports that the average salary for New Orleans residents is $45,594. However, to stick to the rule of spending only 30% on your monthly income on rent, you will need an income of $40,720 to live comfortably in a one bedroom apartment that costs $1,018.