Laurel, Mississippi is known for its historic downtown area, thriving arts scene, and as the birthplace of famous celebrities. However, one thing residents and those looking to relocate may notice is how affordable housing is in Laurel. With the average home value being around $86,000, houses in Laurel are significantly cheaper than national averages.
So what factors have contributed to making real estate so inexpensive in this small Mississippi city?
Affordability of Housing in Laurel
Housing in Laurel is considerably more budget-friendly than most other places in the country. The median home value in Laurel according to the most recent 2020 census data is $86,128. To put that in perspective, the median home value in the United States is $240,500.
So on average, homes in Laurel are selling at around 35-40% less than national home values. This affordable pricing makes owning a home or investing in real estate very attainable for average income households in Laurel.
Related: Top 8 Cheapest Places To Live In Mississippi
Low Population and Demand
With a population of only around 18,000 residents, Laurel is considered a small city. The modest population size has kept housing demand relatively low over the years. According to the US Census Bureau, Laurel's population has remained stable and grown by only around 1% per decade.
Low demand means the current housing supply usually exceeds what is needed. This imbalance of more homes than buyers leads to downward pricing pressure on properties to attract buyers.
Rural Location
As Laurel is situated in a less developed, more rural part of eastern Mississippi, it lacks some of the major amenities and job opportunities of larger metropolitan areas. Being farther removed from significant employment centers and not as accessible to important services means the location is less appealing to many buyers.
The rural location consequently influences housing demand and value in Laurel to be lower when compared to more urbanized regions nearby.
Weak Local Economy
While Laurel still maintains sectors in manufacturing, healthcare, and agriculture, its economy is not as robust as places with stronger industries. About 12.7% of Laurel residents live below the poverty line according to recent Census estimates.
Lower average incomes correspond with fewer residents being able to afford higher priced homes. The combination of weaker local jobs and wages feeds into the ability of buyers to pay and continued inexpensive home prices.
Aging Housing Stock
It is estimated that over 65% of existing housing units in Laurel were built before 1980. Older homes may not be updated with modern designs, floorplans, or high-end amenities which attract higher sale prices. The dated characteristics paired with less attention given to older properties' upkeep mean they sell at reduced rates compared to newly constructed residences.
Having an older building stock directly attributes to more affordable overall housing costs in Laurel.
Higher Crime Rates
While still relatively low, Laurel has a consistently higher violent and property crime rate than the rest of Mississippi according to FBI crime reports. In 2020, the violent crime rate was 549 offenses per 100,000 people versus the state rate of 379.
This undermines safety perceptions which sways potential buyers to other safer areas. Heightened criminal activity causes reduced demand as it is less desirable for homeownership, contributing to the bargain home prices.
Lack of Infrastructure
Laurel has basic infrastructure to support residents but is deficient compared to larger, more progressed cities. Limited public transportation options, fewer recreational facilities, aged roads and utilities, and insufficient broadband internet in rural areas makes the region less attractive overall. The infrastructure shortcomings associated with a small, older community has an impact on the perceptions and valuations of its housing market.
Conclusion
In summary, a variety of interrelated economic, demographic, and local development factors have led to the favorable housing affordability seen in Laurel. Despite facing challenges, many see the low home prices as an opportunity. For working families on a budget and investors, Laurel real estate presents a worthwhile value. With its rich cultural history and community charm, Laurel is a prime example of a classic small southern city with surprisingly inexpensive residential property.
