If August in Louisiana is hot, then the real estate market in the Greater New Orleans Area is on fire. For the third year in a row the cost of buying a home in the New Orleans area has risen.
The 10 year anniversary of Katrina marks a milestone showcasing this city's resilience in its ability to rebuild and heal. The current factors influencing where we see our city today is the result of several factors, some influenced by Katrina and others happening independently.
For starters, New Orleans is a port city by a major waterway, like New York and San Diego. This means it operates somewhere outside of typical housing trends seen in other states such as Kentucky, for example. Like life, the market works in cycles. No matter where it goes, it always comes back around.
Government funding in an effort to spark economic recovery and development following the aftermath of the storm is finally paying off. Those efforts have helped act as a catalyst in attracting independent builders, developers, and home buyers to the city.
In the years following Katrina, the city's initiative to regenerate revenue being lost due to abandoned lots also ended up attracting lots of young buyers and builders with the unprecedented opportunity to own property they otherwise could not afford.
An influx of talented and capable construction workers relocated to the city in efforts to support the new found demand for workers created by the influx in property buyers. Growth can only occur so long as the demands of the consumer are met, and the market not saturated. At one point renovations and construction will peak, but quality housing and roads will continue to appeal for decades more.
There is now more faith and support in the Corps of Engineers who restored and corrected the faulty levee system that existed prior to the storm. Even if another storm like Katrina were to hit the city, history would not repeat itself. The city is stronger, better prepared and more aware that it ever has been.
The ongoing construction of the massive, new Veterans Affairs hospital complex is presently a dominant factor fueling the fire behind New Orleans' hot real estate market. Once the hospital is completed, there will be an influx of new residents. It is this $1 billion dollar project that catalyzed the rebirth of Midd City's residential renovations.
What are the hottest neighborhoods in the New Orleans area right now?
- Garden District: 2,023,888
- Audubon: $1,338,492
- City Park: $1,295,000
- French Quarter: $865,383
- Uptown: $697,090
- Lower Garden District: $539,258
- Mid City: $321,812
- Lakeview: $535,961
- Marigny: $504,560
- Bywater: $382, 214
- Central City: $193, 273
- Seventh Ward: $182,738
(Average listing prices taken from Trulia 8/12/15 report)
Ultimately, New Orleans remains an economic cornerstone because of its investment opportunities. In addition to good food and fun, the region offers not just culturally diverse experiences, but also an eclectic variety of unique properties. Despite everything that has gone against the state of Louisiana, it appears to be primed for a return to prominence.