USA – LOUISIANA Trends and Developments Contributed by: Jeffrey P Good and Susan M Tyler, Jones Walker LLP
Jones Walker LLP 201 St Charles Avenue, 51st Floor New Orleans LA 70170 USA Tel: +1 504 582 8256 Fax: +1 504 582 8583 Email: jgood@joneswalker.com Web: www.joneswalker.com
Introduction Louisiana’s real estate market in 2025 presents a complex landscape shaped by significant legal, economic and environmental develop - ments. This analysis explores key trends and legal changes affecting real estate professionals, with a particular focus on commercial develop - ment, regulatory shifts and emerging industry challenges. While national markets often domi - nate the headlines, Louisiana’s distinctive legal framework and economic drivers create unique considerations for real estate practitioners. Recent legislative sessions have produced substantial changes to property law, insurance regulation and tax structures. Meanwhile, major development projects continue across the state, bringing both opportunities and legal complexi - ties. Environmental initiatives, particularly car - bon sequestration, represent an evolving area with significant implications for property rights and development. These factors, combined with regional market variations, create a dynamic environment for real estate professionals to navigate.
Legislative and Regulatory Changes The Louisiana legislative landscape has under - gone substantial transformation, affecting real estate practice. Several key changes merit par - ticular attention from industry professionals. Tax reform Louisiana has implemented significant tax changes. This reform included expanding the sales tax base to various services and products previously exempt from taxation. Additionally, the state implemented a flat individual income tax rate and reduced corporate income tax, which may influence investment and develop - ment decisions. Property insurance reform Insurance reform constitutes perhaps the most impactful legislative change for real estate in 2025. Following widespread market disruption, the legislature passed a comprehensive pack - age aimed at stabilising the property insurance market. Key components include removal of the “three-year rule” that prevented insurers from non-renewing policies after a certain period, transition to a file-and-use rating system allow - ing faster market adjustments and reform of bad
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