While the theme of the 2021 Economic & Real Estate Forecast Symposium this month (Oct. 19 and 20) is “Rethinking Real Estate, Adapting to the Changing Dynamic in New Orleans and Louisiana,” I suggest we not rethink too hard as we have seen a single-family residential market at demand levels not ever experienced in my lifetime, while commercially we have recently experienced a similar trend for smaller office and office warehouse properties.
A colleague of mine, Doug Bernard, a broker at REMAX Alliance, shared some great thoughts with me recently relating to our current demographics.
“First, the Baby Boomers who are now between the ages of 57 and 76 have hit or are reaching retirement age,” he said. “In fact, as of 2020 there are now 20 million more people over age 60 than in 2017. As such, it can be anticipated that their homes will be coming on the market, providing much needed inventory for the younger generation. As Baby Boomers become sellers, they will also become buyers, in many cases downsizing. By doing so they both relieve inventory shortages on one hand while putting pressure on supply on the other.”
Another group that represents a strong buying demographic are millennials — who are currently recognized as those between the ages of 29 and 40.
“Most people buy their first home in their 20s or 30s, and millennials as a generational group are now as large as the Baby Boomers were in 1984,” said Bernard. “In fact, there are currently 4.5 million more people between the ages of 30 and 39 than in 2010. This reality, coupled with Baby Boomers transition into retirement, should result in increasing home sales well into this decade and continuing into the 2020s.”
But where to settle down? Another colleague of mine, Sheldon Harris of Turner Properties, is quick to express his passion for Kenner Rivertown and New Orleans East.
“Sometimes being lost in the shuffle while located on the outskirts of New Orleans provides much promise, especially if you will be actively involved with the community,” he said. “Akin to residents and city officials of Kenner and New Orleans, I see the potential for exponential growth and development in these communities.
“In November 2018, my wife and I purchased a clinic building in Rivertown — Family First Medical & Wellness Clinic — which she operates as a private practice primary care clinic. The surrounding area has many underserved patients but few primary health facilities. She is honored to provide superior medical care in her hometown of Kenner. In May 2021, we also purchased an event hall with business partners on Martin Drive in New Orleans East. We are in the process of renovating the property and will open as The Venetian Venue in January 2022. Our focus Is not only to bring a premier event space to New Orleans East, but to also engage the community through outreach programs and community events. I invested in these communities to put my fingerprints on them and be a part of rebuilding the infrastructure, attracting businesses and increasing both resident and community morale.”
Another colleague, Bryan Burns, a broker at Transwestern Properties, has found his passion project on the Northshore, where in 2017 he founded a faith-based, nonprofit organization called West 30’s Redemption Company (W30RC) with the goal of serving lower-income families with good-quality affordable housing in the West 30’s, a historic neighborhood adjacent to downtown Covington.
“Demographically, the West 30’s is similar to New Orleans communities such as the 9th Ward and the 7th Ward,” explained Burns. “This 82-city block community has 350 houses, 300 vacant lots and 1,200 residents, many of whom have suffered from multigenerational poverty. Fifty-five percent of the houses are rentals and one-fourth of those are in significantly sub-standard condition.
Through W30RC, Burns is on track to serve 40 lower-income families with newly built or newly renovated houses by the end of 2021. “We employ a unique, 100% debt funding approach for our houses, which range from $90,000 to $150,000 with an average size of 1,100 square feet.
How is this venture funded?
“Each house is supported by a faith partner church and a business partner,” said Burns. “We’ve partnered with 18 churches, 13 community banks, 12 businesses and 25 individuals who have provided supporter loans totaling $550,000.”
And then of course there’s New Orleans, the love of which inspired another colleague of mine to become a Realtor.
“Why New Orleans?” is a question I have been asked many times since I moved here nearly a decade ago,” said Paige Devries, a realtor with TCK Property Marketplace. “The more interesting question is: Why have I, or anyone who moved here, decided to stay and make a life in New Orleans?
“The reason I love and cherish this city is because of the community I found here. In my first year here, I met my partner, who was born and raised in the 7th Ward. His friends, neighborhood and family became my friends, neighborhood and family. This tight knit group of people helped me realize that New Orleans’ greatest attribute is not a physical thing, it is its people and the unique and unpretentious way they communicate, celebrate and mourn together.”
This sense of community is not just the reason Devries stayed in this city, it is also the reason she became a Realtor.
“In becoming a Realtor, I was hoping to acquire skills to help the people in my community stay in the community that they grew up in, provide information about first-time home buying and establish generational wealth. This goal motivates me and is also a way I participate and contribute to the people and place that has already given me so much.”
Robert K. H. Stevens founded The Stevens Realty Group, Inc., in August 1994. The company is headquartered in Metairie and offers brokerage — both leasing and sales — property management and consulting services on commercial and investment real estate. He is a past president of the NOMAR CID and still serves on the CID Fall Forecast and Service to the Community committees. He has been in the real estate industry since 1978 and his approach is as a fiduciary with his clients.
