With growth rates of up to 2% annually for home prices in the past decade, the housing market in the New Orleans’ metro area has all but recovered from Hurricane Katrina.
As this week marks the 10-year anniversary of the devastating event, the New Orleans Metropolitan Association of Realtors prepared a report that shows that the real estate market has fully rebounded, not only in terms of prices but also sales volume.
The report found that average prices for Metro New Orleans, including the City of New Orleans, have risen from $102 per square foot before Katrina to $121 per square foot today, an 18.6% increase over a decade. In the first half of 2015, prices grew 6.1% alone.
The recovery in the City of New Orleans alone is even more outstanding, with a 46% growth in home prices over 10 years, or 4.6% annually. A boom in industrial firms, startups and other technology-oriented companies along the Mississippi River since Katrina has contributed to rising homes values in the city. In the first half of this year alone, prices have gone up 10% from the second half in 2014, to $166 per square foot. The average sales price rose from $300,300 to about $339,750.
The report finds that “nearly 10 years after Katrina there are still affordable housing opportunities for individuals and investors to buy inexpensively and then renovate to modern standards with a profit earned in the process.”
Write to Andrea López Cruzado at email@example.com