August 20, 2009 - Posted by Rachel Eggleston
Four years after Hurricane Katrina destroyed hundreds of thousands of Gulf Coast homes, a lack of affordable housing, thousands of unihabitable residences, and a stagnant real estate market continue to vex New Orleans residents and evacuees looking to return to the city.
The Road Home, a federally funded program that provides compensation to homeowners affected by Hurricanes Katrina and Rita, has distributed $7.95 billion to help Gulf Coast residents return to their homes. But while the number of unoccupied homes in St. Bernard and Orleans parishes has increased in the past year, 53 percent and 31 percent of homes are still vacant, respectively.
According to a June 2009 report by the Greater New Orleans Community Data Center, the average rent for a studio apartment is $733 per month, which is 40 percent more expensive than pre-Katrina rates. Few service workers can afford a New Orleans area apartment without paying more than 30 percent of their income.
Like many metropolitan areas dealing with the economic crisis, the New Orleans housing market has suffered in the past year. Home sales are down 23 percent since May 2008, but housing prices have not fallen as steeply as the national average, making homeownership a relative expensive proposition in the city.
Categories: Housing & Lending
