Louisiana Shows Signs of Recovery

No one will forget the day, August 29, 2005, when Hurricane Katrina hit southeastern Louisiana and the levees failed, flooding neighborhoods in and around New Orleans.  Nor will we forget the devastation and the tragic events that followed.  More than two-million people in the Gulf region lost their homes, and over 1,500 people lost their lives in Louisiana alone.  The media and society-at-large voiced outrage that the government response at all levels was slow and insufficient.  The clean-up and rebuilding process still continues, but there are some positive indications that the New Orleans metro is recovering. 

After the hurricane, the population of Louisiana decreased by over 4% from 4,468,976 (2000 census estimates) to 4,287,768 in 2006; many residents displaced when Katrina forced the closing of New Orleans chose to seek refuge in other states.  It is difficult to assess how many residents have returned to the New Orleans area (the last census numbers are pre-Katrina), but some estimates indicate that as much as 60% of the population, or 273,000 of the city’s pre-flood population of 454,865, have returned.  Population estimates for Greater New Orleans show a stronger rebound, with 1.2 million of the 1.4 million people now residing in the area, which implies that many who may have left the city may still be in the metro area.

Louisiana Real Estate Markets

Louisiana real estate markets are gaining strength, with building permits for new homes increasing significantly during the second quarter of 2007, totaling 6,742 compared to 6,141 for Q2 2006.  Housing prices, which gained ground as well, were 6.6% higher in June 2007 over June 2006.  In comparison, housing prices in the U.S. rose 3.2%. 

Economic experts project that the New Orleans metropolitan statistical area (MSA) will add 34,300 jobs in 2007 and another 23,000 more in 2008, as released in the October 2006 Louisiana Economic Outlook.  Figures show Louisiana should pass pre-storm employment by sometime in 2008.  The report also projects job growth in six out of the seven other MSAs in Louisiana.  Marathon Oil announced a $3.2 billion expansion of its refinery in Garyville, located between the state’s capital, Baton Rouge, and New Orleans.  A new plant will bring 2,000 construction jobs and 250 permanent new jobs to the area.  Several other large construction projects in and around New Orleans, include a new six-lane span over Lake Ponchatrain, widening of the Huey P. Long Bridge, a $1-billion LNG import terminal, a $60-million luxury condo project in the Warehouse District and an expansion of the Dow Chemical Union Carbide facility in St. Charles Parish.

The city of Lafayette, located in the south-central portion of the state, ranked among the top 25 cities in the country for creating and sustaining jobs.  The Best Cities Index found that Lafayette made the biggest jump of any city since its 2005 ranking, from #143 on the list to #24 this year.  While the city’s highest individual ranking was in one-year job growth (10th among the 200 cities), it also ranked high in one-year salary/wage growth (16th) and five-year high-tech growth (15th).

The sister cities of Shreveport and Bossier City are expected to gain 5,800 jobs in 2008-2009 based on the announcement that Barksdale Air Force Base will become the permanent home of the military’s cyberspace command.

Those looking for job opportunities in a growing economy should start with these cities in their search for new homes for sale in Louisiana.

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