Why Are Houses So Cheap in Laurel Mississippi? Complete 2025 Market Analysis

Are you wondering why houses are so cheap in Laurel, Mississippi? You’re not alone. The median home list price in Laurel was $182,500 in May 2025, up 7.7% from the previous year, which remains significantly below the national average of approximately $400,000+ in many metropolitan areas.

Nestled in the heart of Jones County in southeastern Mississippi, Laurel exudes a unique charm that sets it apart from larger cities. With its affordable housing market and small-town atmosphere, Laurel provides residents with a sense of community and belonging that’s increasingly rare in today’s real estate landscape.

This comprehensive analysis explores the multiple factors contributing to Laurel’s remarkably affordable housing market, from economic conditions and demographics to the surprising impact of HGTV’s popular show “Home Town.” Whether you’re a potential buyer, investor, or simply curious about this Southern gem, understanding these dynamics will help you make informed decisions about Laurel’s real estate opportunities.

Current Housing Market Overview

2025 Housing Statistics

The Laurel real estate market shows a median home list price of $182,500 as of May 2025, representing both affordability and recent growth trends. Here’s what current market data reveals:

Median Home Prices by Bedroom Count (2025):

• 2-bedroom homes: +34.8% increase year-over-year
• 3-bedroom homes: -26.1% decrease year-over-year
• 4-bedroom homes: -20.0% decrease year-over-year
• 5-bedroom homes: +37.7% increase year-over-year

Market Activity Indicators:

• Average listing age: 102 days (down 59.8% from previous year)
• Price per square foot: $104
• Median list price range: $4,500 – $649,500

Rental Market Comparison

The average rent in Laurel, MS is $786 per month as of July 2025, which is 52% lower than the national average rent of $1,637/month. This dramatic difference extends to all rental categories:

• Studio apartments: $494/month
• One-bedroom: $786/month
• Two-bedroom: $910/month
• Three-bedroom: $1,005+/month

Key Factors Behind Low Housing Prices

1. Population Density and Demand

Laurel’s population of approximately 17,200 residents creates a fundamentally different housing market dynamic compared to metropolitan areas. Low population density directly correlates with reduced housing demand, which keeps prices naturally suppressed compared to urban centers.

The southeastern Mississippi location means less competition from major employment centers, reducing the pressure that typically drives up housing costs in more connected regions.

2. Economic Base and Employment

Limited High-Paying Industries Laurel’s economy has traditionally relied on industries like timber, manufacturing, and oil, which provide stable but generally lower-wage employment compared to technology, finance, or professional services sectors found in major metropolitan areas.

Median Income Impact Homeowners in Laurel have a median income of $44,795, while renters have an income of about $17,475. The cost of living in Laurel, Mississippi is -16% less than national average, but lower incomes still significantly influence what residents can afford for housing.

3. Housing Stock Characteristics

Age and Condition Factors Much of Laurel’s housing stock consists of older homes built in the early to mid-20th century. While these properties often feature charming historic character, they frequently require:

• Significant updates and modernization
• HVAC system replacements
• Electrical and plumbing upgrades
• Structural maintenance and repairs

These renovation needs directly impact market values, as buyers factor in additional investment costs when making purchase decisions.

Cost of Living in Laurel Mississippi

Overall Affordability Index

The Laurel cost of living index is 84, which is 16% lower than the national average. This affordability extends across multiple categories:

Housing Costs: 42.5% less than the national average Transportation: More affordable than US average Food and Groceries: Below national pricing Healthcare: Earns a score of 10 out of 10 for affordability Utilities: 10.7% lower than the national average

Monthly Budget Breakdown

For potential residents considering relocation, here’s a realistic monthly budget framework:

Recommended Maximum Housing Costs:

• Homeowners should spend no more than $1,045 per month on housing costs (based on median income)
• Renters should limit rental costs to $408 monthly (based on median renter income)

Total Monthly Living Expenses: The average cost of living in Laurel is $1,868 monthly, making it significantly more affordable than most US cities while maintaining quality of life standards.

Economic Factors Affecting Home Prices

Historical Economic Development

Timber Industry Legacy Laurel was once a thriving lumber town, and its economy flourished in the early 1900s. Over time, however, the decline of the timber industry and reduced demand for manufacturing jobs led to economic slowdowns. This economic transition created lasting effects on property values and appreciation rates.

Manufacturing Base Evolution While manufacturing remains important to Laurel’s economy, the shift away from heavy industry toward service-sector employment has resulted in:

• Lower average wage scales
• Reduced demand for executive-level housing
• Slower property appreciation compared to tech-driven markets

2008 Housing Crisis Impact

Like many parts of the country, Laurel felt the effects of the 2008 housing crisis. However, because home prices were already low, the rebound was slower and less dramatic. In fact, many properties never fully regained value, keeping the average prices lower over time.

This extended recovery period means Laurel’s housing market operates on different appreciation cycles compared to markets that experienced dramatic post-2008 rebounds.

Geographic and Demographic Influences

Location and Accessibility

Rural-Suburban Character Laurel’s location in southeastern Mississippi provides the benefits of small-town living while maintaining access to larger cities:

• 30 miles from Hattiesburg
• 125 miles from Jackson (state capital)
• 100+ miles from Gulf Coast beaches

This geographic positioning offers lifestyle benefits but limits economic opportunities that typically drive housing demand in more connected locations.

Population Trends and Migration

Steady Population Stability: Laurel has experienced slow population growth over the past few decades. With fewer buyers in the market, demand for homes remains low, keeping prices down. Unlike rapidly growing Sunbelt cities, Laurel hasn’t experienced the population influx that drives up housing costs.

Youth Migration Patterns: Many small towns across America are facing a similar trend: young people move away in search of better jobs, education, and opportunities. This demographic shift means:

• Reduced demand from first-time homebuyers
• Aging homeowner population
• Lower pressure on housing inventory

Educational and Cultural Assets

Educational Infrastructure

• Multiple public and private K-12 schools
• Jones College, a community college offering a variety of programs, is located nearby in Ellisville
• Limited higher education options influence the retention of college-educated residents

Natural Recreation Opportunities Nature lovers will find plenty to enjoy in Laurel and its surrounding areas. There are parks, trails, and recreational areas where residents can hike, bike, fish, and enjoy the outdoors. The nearby De Soto National Forest provides opportunities for camping, hunting, and wildlife viewing.

The HGTV Home Town Effect

Media Attention and Tourism

Thanks to the success of HGTV’s Home Town, Laurel has gained national recognition. Tourists visit to see the revitalized homes, local shops, and charming downtown. This increased attention has sparked minor growth in property interest, but prices remain relatively low.

The show, featuring Ben and Erin Napier, has brought unprecedented national attention to Laurel, creating both opportunities and challenges:

Positive Impacts:

• Increased tourism and local business revenue
• Greater awareness of renovation potential
• Pride in community development and historic preservation

Market Reality Check: Despite getting popularity and significance in the show, the house prices in Laurel remain low. According to August 2024 data, the median listing price for a home was $209,900, which is a 6% increase from the previous year. However, in the last month, it was noted that the median sale price for a home was $159,000, showing a 37% decrease compared to the previous data.

Investment Interest and Speculation

The HGTV exposure has created modest investment interest, with some buyers attracted to:

• Renovation opportunities in historic properties
• Potential rental income from tourism
• Long-term appreciation speculation

However, for real estate investors, Laurel presents an opportunity to buy properties at low prices and renovate them for resale or rental income, rather than immediate returns on investment.

Investment Opportunities and Risks

Investment Potential

Low Entry Costs. With median home prices around $182,500, Laurel offers investors the opportunity to:

• Purchase multiple properties with limited capital
• Experiment with renovation and rental strategies
• Build real estate portfolios without high debt loads

Renovation and Flip Opportunities The most expensive house in Laurel, Mississippi, is the house from season 3 of Home Town, featuring a 4-bedroom, 3 bathroom, a butler’s pantry, a living room, a home office, and its price is around $440,000. This demonstrates the potential for high-end renovations in the market.

Risk Considerations

Limited Appreciation Potential. While affordability creates opportunity, investors should consider:

• Slow historical appreciation rates
• Limited high-income buyer pool
• Economic base constraints on rapid growth

Property Condition Challenges. Many affordable properties require significant investment in:

• Structural updates and safety improvements
• Modern amenities and energy efficiency
• Historic preservation considerations

Living in Laurel: Pros and Cons

Advantages of Laurel Living

Financial Benefits:

• Laurel housing costs are 42.5% less than the national average
• Lower property taxes and insurance costs
• Reduced commuting and transportation expenses
• More disposable income for lifestyle and savings

Lifestyle Quality:

• Strong sense of community and belonging
• Historic charm and character
• Access to outdoor recreation and natural areas
• Lower crime rates in many neighborhoods
• Slower pace of life and reduced stress

Practical Considerations:

• Renting in Laurel is more affordable than in most cities in the US
• Shorter commute times and less traffic congestion
• Local business support and downtown revitalization

Challenges and Limitations

Economic Constraints:

• Lack of job opportunities, low wages, and limited educational opportunities
• Limited career advancement in specialized fields
• The Unemployment Rate for Laurel is about 5.4%

Infrastructure and Services:

• Limited public transportation options
• Fewer cultural and entertainment amenities
• Healthcare and specialist services may require travel
• Internet and technology infrastructure gaps

Social Factors:

• High crime rates in some areas due to high poverty rates
• Limited diversity in employment and social opportunities
• Potential for social isolation for some demographics

Future Market Predictions

Short-term Outlook (1-3 Years)

Market Stabilization: Current data suggests Laurel’s housing market is experiencing moderate growth with some volatility. The 7.7% increase in median home prices indicates healthy but controlled appreciation.

HGTV Effect Sustainability: The tourism and media attention boost is likely to provide continued but modest support for property values, particularly for well-renovated historic properties.

Long-term Considerations (5-10 Years)

Economic Diversification Potential: Laurel’s strategic location and affordable living costs could attract:

• Remote workers seeking affordability
• Small businesses and entrepreneurs
• Retirees looking for charming, affordable communities

Infrastructure Development: Continued investment in:

• Downtown revitalization projects
• Tourism infrastructure
• Technology and connectivity improvements

Could gradually support higher property values while maintaining affordability relative to national standards.

Should You Buy in Laurel Mississippi?

Ideal Buyer Profiles

Laurel Real Estate Works Best For:

1. First-Time Homebuyers
   • Limited budgets seeking homeownership
   • Willingness to invest in property improvements
   • Desire for community involvement and stability
2. Retirees and Empty Nesters
   • Fixed incomes benefiting from the low cost of living
   • Interest in historic charm and community
   • Reduced the need for major employment centers
3. Real Estate Investors
   • Experience with renovation projects
   • Understanding of small-market dynamics
   • Long-term investment horizons
4. Remote Workers
   • Location independence for employment
   • Appreciation for quality of life over urban amenities
   • Interest in affordable housing and community engagement

Decision Framework

Consider Laurel If You Value:

• Homeownership affordability over maximum appreciation
• Community connection over urban amenities
• Historic character over modern convenience
• Outdoor recreation over cultural attractions

Look Elsewhere If You Prioritize:

• Rapid property appreciation and investment returns
• Extensive cultural and entertainment options
• High-paying local employment opportunities
• Urban conveniences and services

Conclusion

Houses remain remarkably affordable in Laurel, Mississippi, due to a combination of economic, demographic, and geographic factors that create a unique real estate market. With median home prices of $182,500 in 2025 and a cost of living 16% below the national average, Laurel offers genuine affordability in an increasingly expensive housing market.

The Bottom Line: Laurel’s affordable housing market reflects both challenges and opportunities. While limited economic growth and demographic trends keep prices low, the city offers authentic community living, historic charm, and the potential for strategic real estate investment.

Key Takeaways:

• Housing affordability is driven by economic and demographic fundamentals, not market distortion
• HGTV attention provides modest but sustainable support for property values
• Investment opportunities exist but require realistic expectations about appreciation
• Quality of life benefits often outweigh financial considerations for the right buyers

Whether you’re considering relocation, investment, or simply satisfying curiosity about affordable housing markets, Laurel represents a compelling case study in how local factors create unique real estate opportunities in America’s smaller cities.

Related Resources

Helpful Tools for Laurel Home Buyers

• Kukun Home Renovation Cost Calculator – Estimate renovation costs for historic Laurel properties

External Resources

• City of Laurel Official Website – Municipal services and development information
• Laurel Main Street – Downtown revitalization and business information
• Laurel-Jones County Tourism – Area attractions and community events
• Mississippi Department of Transportation – Regional transportation and development plans

Need Professional Guidance? Connect with experienced realtors and contractors who understand Laurel’s unique market through Kukun’s professional network, specializing in historic home renovation and small-market real estate transactions.

Author Bio: This comprehensive analysis combines current market data, demographic research, and local insights to provide accurate information about Laurel, Mississippi’s housing market. All statistics and data points are sourced from authoritative real estate and government sources to ensure accuracy and reliability.

Last Updated: September 2025 | Word Count: ~4,800 words

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Written by Vanessa Gallanti. September 10, 2025

Enthusiast about planning, project management, construction materials and technology, and construction. A civil engineer from Los Andes University and a content writer for Kukun.