Hurricanes Trigger Gulf Coast Boom

Updating an ongoing story regarding the aftermath of Hurricane Katrina and the real estate boom that has followed, Reuters reports that the Gulf Coast market has never been busier.

As industries from fishing to tourism flounder in the region, Louisiana real estate has taken off in the opposite direction as many companies are hurriedly trying to secure housing for displaced workers and eager investors are looking to snare bargain properties. Latter & Blum, Inc., a New Orleans real estate firm, reported an astounding $285 million in residential sales in September, 73 percent more than it had projected before Katrina. As the company’s president, Arthur Sterbcow, put it: “Every marketplace that did not flood and that has power has experienced a huge leap in sales.”

The Big Easy is hardly the only case of rapid growth. Baton Rouge, the state’s capital, has seen the most dramatic increase in activity as residential purchase agreements tripled from the same period a year ago in the 30 days following Katrina’s onslaught. Officials throughout the state expect this trend to continue as residents receive compensation from their insurance companies and begin to purchase new properties.

Hopefully, the rapid investment from so many private citizens and corporations will trigger prompt rebuilding and economic revitalization for the Pelican State, while ensuring that lower-income residents are not left out to dry.