Post hurricane Katrina New Orleans has undergone massive redevelopment projects including new retail, master planned communities, central business districts, apartments and of course New Orleans condos. It has been more than two years since the disaster and in that time there have been many new condos proposed…only a few of which have been canceled. New residential development has been part of the rebuilding plan by the city but what they didn’t predict was the overall effect of the slowing housing market. Sales have definitely slowed, and as for many condo projects around the country, the banks have slowed down their pace of funding construction loans.
Some amazing New Orleans condos such as Vantage Tower in downtown New Orleans have been canceled due to the drastic increase in construction costs coupled with the slower than expected amount of job growth. New Orleans has been trying to revitalize its urban core with new retail, office, and luxury condos in the downtown area but without enough jobs and willing buyers who can afford these new condos, it has been a difficult task.
Of course some of the solution will be to provide luxury apartments for a while rather than condos if there are not enough buyers. Until New Orleans attracts more upper income employment, second home buyers, investors, end creates more incentives, the market will remain relatively slow. We can expect to see some more properties not make it off the ground but hopefully as the market corrects these new high-rise condos will be able to move forward.There will be a new Trump Tower going up as well which can bring new interest and investment into any slow market.We’ll see what happens!