It’s been almost two decades since Hurricane Katrina devastated New Orleans. With severe winds and extreme flooding, the damage to the city was unfathomable. The effects of the storm are still present in many ways. For example, Hurricane Katrina had a lasting impact on the New Orleans real estate market.
How did the storm change New Orleans real estate? Read on to learn more.
One of the most notable impacts in the years after the storm was the housing shortage. Many homes experienced significant damage from flooding and winds. By the time the storm was over, many homes were either structurally unsound or uninhabitable due to flood damage. As a result, the city’s housing supply was cut by almost half. The supply still has yet to reach the levels before the storm.
Most people would expect home prices to drop after an event like Hurricane Katrina. However, home prices shot up in the years after the storm. If you had a habitable home, the price would be much higher than in the years before the storm. Some areas of the city saw an appreciation of more than 40% in those years. The housing supply stabilized from 2009 to 2010, and those gains receded. However, the market has been growing ever since.
Another factor in the aftermath of Hurricane Katrina was the market for damaged property. While many lost value, there was a surprisingly strong market for damaged homes. Investors and buyers with the means were interested in these properties. Buyers could renovate the houses and potentially save money. There was also a flood of investors looking to buy the homes. They often purchased homes to renovate and sell them for a profit.
Hurricane Katrina also impacted the design trends for homes in New Orleans. The storm shaped people’s design choices, whether building a new home or restoring a damaged home. There was an increase in open floor plans with less clutter. We also saw an increase in materials that would be more storm resistant. For example, using materials like ceramic tiles for floors became more popular.
While the city has recovered, the effects of Hurricane Katrina will continue to haunt New Orleans for a long time. Some of these effects are apparent in the local housing market.
Do you need help buying or selling a home in New Orleans? Click here to contact Borrouso Realty. Billy Borrouso and his team can help you achieve your goal with New Orleans real estate.
Thanks for visiting!