The Northshore of Lake Pontchartrain, encompassing towns like Covington, Mandeville, and Slidell in Louisiana, is experiencing a significant boom in its luxury housing market, with home prices climbing at a rate that outpaces national averages. In Covington, the most expensive homes have seen a 94% price increase over the last decade, while Mandeville has experienced an 80% rise, according to Realtor.com data. This contrasts with the national luxury market, where top-tier home values have grown by a more modest 57% in the same period.
This surge in demand is partly attributed to trends that began in the aftermath of Hurricane Katrina, when residents sought to remain near New Orleans while moving north across the lake. Over time, St. Tammany Parish, where these towns are located, has evolved from a New Orleans suburb into its own metropolitan area while maintaining strong ties to the city.
Currently, the area is attracting buyers from outside Louisiana, including from cities like Dallas and Chicago. These buyers are often looking for more property and value for their money compared to their home markets. They are drawn to the Southern charm characterized by walkable downtowns, historic homes, and mature oak trees, features that can be acquired at a lower cost than in comparable markets.
Covington has become a focal point for luxury real estate, with the median price for the top 10% of homes reaching $1.13 million and the top 1% averaging $3.74 million. Approximately 11.2% of Covington's listings are currently priced above $1 million. The area's appeal is enhanced by its waterfront access to the Tchefuncte River, Bogue Falaya River, and Lake Pontchartrain, offering opportunities for boating and fishing. The expansion of local medical employers, such as St. Tammany Parish Hospital and Ochsner, has also brought a wave of high-earning professionals to the region.
However, prospective homeowners should be aware of potential fluctuations in homeowner's insurance costs, which can be influenced by a property's age and proximity to flood zones. The market blends historic estates with new construction, reflecting its long-standing appeal to affluent New Orleans families seeking summer residences. Properties currently on the market include a $3.2 million midcentury modern estate on the Tchefuncte River with extensive docking facilities and a $4.5 million Colonial-era home with period features and sprawling grounds.
Realtor Alexis R. Foster of 10/12 Properties noted that the rapid growth in both residential and commercial sectors has strained the parish's infrastructure. While the most significant price gains are concentrated in the high-end segment of the market, real estate analysts suggest that areas like Folsom and Bush within the parish still offer opportunities for development and new housing supply.