In a city known for its rich cultural tapestry, New Orleans is experiencing a transformative phase in its real estate landscape, as highlighted by the recently released comprehensive Market Value Analysis (MVA) from the New Orleans Redevelopment Authority (NORA). This meticulously conducted analysis, crafted in collaboration with eminent real estate experts, provides an intricate examination of the city’s residential real estate market, serving as a vital compass for strategic urban development initiatives, community revitalization and investments essential for the city and its region’s prosperity.
NORA stands as a catalyst for community redevelopment, fostering investment, economic development, and an equitable, sustainable future for the city. Through collaborations with public and private partners, NORA implements innovative strategies to enhance the quality of life for residents and businesses – including the development of the most recent MVA.
The 2023 MVA, the fourth of its kind completed in New Orleans, marks a significant milestone in understanding the evolving trends since the last analysis conducted in 2018. Key highlights from this recent report uncover substantial shifts that have shaped the local real estate landscape:
• Continued Upward Trajectory in Housing Prices: The local housing market has shown unwavering resilience with a persistent upward trend in housing prices, showcasing substantial increases in median home values.
• Transformative Shifts in Home Ownership Patterns: A notable transformation in home ownership dynamics has unfolded since 2018, with a decline of nearly 32,000 renters and an increase of 26,000 homeowners. This shift underscores changes in the population residing in owner- and renter-occupied homes, as reflected by the American Community Survey (ACS), 1-Year Estimates.
• Surge in Land Sales Volume: The real estate market has experienced a remarkable surge in land sales volume, notably evidenced by the nearly doubled sales of vacant lots since 2019, presenting an evolving landscape in land transactions.
The MVA drills down into specific neighborhoods, offering insights into their individual progress within the real estate market. From New Orleans East’s uneven progress to Algiers and the Lower Ninth Ward’s varied market types and Gert Town and Hoffman Triangle’s stabilization since 2018, these findings significantly shape NORA’s policies and initiatives, which are tailored to address the unique market conditions in each area.
Offering a nuanced understanding of their progress within the real estate market, specific neighborhood insights included:
• Algiers and the Lower Ninth Ward: Algiers Point continues to be a node of market strength, surrounded by a variety of market types. More of the Lower Ninth Ward market is active than in previous analyses, showcasing resilience and growth.
• Gert Town and Hoffman Triangle: These areas have stabilized since 2018, with adjacent markets moving up on the MVA scale. Stability indicates opportunities for sustained development and community enhancement.
• New Orleans East: While there has been growth in some areas within New Orleans East, other areas have not kept up with the city as a whole, presenting great opportunities for targeted interventions.
• Gentilly: The market strength from the St. Anthony area continues to move east, shifting housing markets upward on the MVA scale. This eastward shift follows NORA’s substantial affordable housing investments and signals a positive trajectory for Gentilly’s real estate market.
The MVA has a unique role in empowering residents, policy makers and stakeholders with insightful tools to precisely target housing intervention strategies vital for the city’s continued growth.
The release of the 2023 MVA to the public marks a watershed moment for policymakers, investors and community members invested in the sustained prosperity of the Greater New Orleans area. This comprehensive report, available at noraworks.org/impact/#mva, offers invaluable insights that pave the way for informed decision making and strategic planning.
Brenda M. Breaux is the executive director of the New Orleans Redevelopment Authority, a catalyst for the revitalization of the New Orleans region, partnering in affordable and equitable strategic developments that celebrate the city’s neighborhoods and honor its traditions. She may be reached at bbreaux@nola.gov.
