The Baton Rouge housing market is heating up, and prices are rising alongside demand.

The average cost of living in the capital city has increased by 2.9% in 2025 compared to 2024, according to recent market data.

The number of students and families looking for homes in Baton Rouge has increased, limiting the supply of homes available. The small housing market is costing the price of housing to increase.

College students are among those most affected by the shortage. Many are finding it difficult to secure affordable, well-located housing near campus.

LSU freshman, Josephin Melnyk, finds it challenging to find homes in her price range that are close enough to LSU.

“It’s definitely hard to find housing here because there’s so many students here and the students want the best obviously.They want to be close to campus and they want it to be nice also. So, it’s definitely hard, it’s almost like you’re in competition with everybody” Melnyk explained.

Although housing costs remain high, experts say interest rates could help slow the rate of price increases.