New construction projects, both commercial and residential, are set to reshape the city’s landscape in 2025. This shift signals not only a surge in economic investment but also raises questions about equitable growth, access to resources, and sustainable development as New Orleans navigates its complex socio-economic terrain.
Talking with some of the people and organizations behind some of these projects, it becomes clear that major development efforts are aiming to address a wide variety of needs in the city, from bolstering tourism to improving access to healthcare and affordable housing. However, these ambitions come with unique challenges and opportunities in a post-pandemic environment, particularly as communities demand and deserve a voice in how their neighborhoods are transformed.
Major Projects Poised to Redefine the Skyline
One of the most anticipated projects breaking ground in 2025 is the River District, a mixed-use development combining housing, entertainment and a new office building for Shell, marking the first major office structure in Downtown since the completion of Benson Tower in 1989.
And work is underway.
“We have seen dirt being moved on the site, and both residential housing and the new Shell office building were part of the first phases,” said Grady Fitzpatrick, chief business development officer at GNO, Inc.
Fitzpatrick said the River District will serve as a key component of New Orleans’ efforts to provide modern housing while supporting business growth. Critics, however, have raised concerns over whether the developments will be accessible to a diverse range of residents.
Though it’s well outside of the city, another large project is Port NOLA’s Louisiana International Terminal, which promises to bring economic growth on a different scale. Nicholas Moldaner, chief operating officer at RNGD, noted that “the new terminal was expected to bring more than 18,000 jobs to the state by 2050.”
This terminal is aimed at enhancing New Orleans’ status as a global port, while providing job opportunities and bolstering economic stability. But there’s strong opposition from community members who say the facility is being built in a historic neighborhood with suburban neighborhoods located on both sides of the development. They claim it will destroy pollution-eating wetlands that also serve as storm buffers, and bring in an armada pollution-generating trucks every day.
Hospitality and Healthcare Sectors
The hospitality sector remains a strong driver of new investments in the city.
“As we looked ahead to 2025, the hospitality sector continued to lead,” said Moldaner, “with over $1 billion in current and planned developments.”
New hotel projects, like the 1,000-room Omni Hotel near the Ernest N. Morial Convention Center, are expected to contribute to this wave.
With the renovated Caesars Superdome and Super Bowl LIX coming in early 2025, tourism in the city is looking toward some significant bumps. Critics have questioned, however, whether local communities can also benefit from this growth, or if these developments will primarily serve out-of-town visitors.
Healthcare and biotech also represent significant growth areas, driven by the BioDistrict New Orleans initiative. Fitzpatrick noted the catalytic potential of this project, stating that “the BioDistrict could transform that part of Downtown into a thriving healthcare and bioscience hub.”
Overcoming Financing and Cost Barriers
Both Fitzpatrick and Moldaner pointed to challenges developers face in securing financing, largely due to higher interest rates and the increased cost of construction materials, which disproportionately impact smaller developers and community-led projects. For communities traditionally underserved by large developers, these challenges make it harder to secure financing for projects that could address local needs, such as affordable housing or community spaces.
Public-private partnerships have become essential to enabling large projects to get off the ground. Moldaner pointed out that “public-private partnerships emerged as an effective financing tool and a catalyst for successful commercial and residential developments.” He emphasized that these partnerships — which can leverage historic tax credits and tax increment financing (TIF) districts — can serve as a bridge between public resources and private capital.
Rising Rental Rates and the Push for Affordable Housing
As new office and residential developments rise, the pressure on New Orleans’ real estate market intensifies.
“New Class A office developments commanded premium rates, about 25% above pre-pandemic levels,” said Moldaner.
This shift underscores the importance of balancing market demand with equitable housing access. For instance, Fitzpatrick said a few projects will incorporate affordable housing into their design. “River District, Naval Support and others aim to address the city’s ongoing housing crisis,” he said.
However, affordable housing remains a pressing issue, especially as communities fear that rising rents in newly developed areas may drive long-term residents out of neighborhoods they have called home for generations. Sustainable development strategies, such as mixed-income housing models and office-to-residential conversions in older properties, could play a critical role in easing housing pressures while supporting inclusivity.
Sustainability and Resilience as Core Values
Given New Orleans’ vulnerability to hurricanes and flooding, developers are increasingly incorporating sustainability and resilience measures into new buildings.
“New Orleans continues to be one of the most resilient cities, and our building codes reflect that,” said Fitzpatrick. Resilient design has become integral to these projects, focusing on flood defenses, sustainable energy and adaptive infrastructure to withstand natural disasters.
Moldaner also noted that many projects are incorporating on-site power generation and oversized stormwater systems, explaining that “new projects typically included on-site power generation through a combination of solar installations and natural gas generators.”
These systems not only protect the physical structure but also enhance community resilience, reducing the environmental impact and contributing to long-term economic stability in the face of climate change.
The Role of Community Input and Equity
As New Orleans embarks on this construction boom, ensuring that community voices are included in the planning and design stages will be essential. Both Fitzpatrick and Moldaner underscored that local government, planning commissions and community organizations play critical roles in regulating and incentivizing these projects.
“Community voices must be incorporated into planning to avoid displacing residents and ensure developments reflect local needs,” Fitzpatrick explained.
Public consultations, feedback sessions and proactive outreach to marginalized communities can help ensure these projects serve a diverse set of residents, fostering more inclusive growth.
Drew Hawkins is a writer and journalist in New Orleans. He’s the health equity reporter in the Gulf States Newsroom, a collaboration among public radio stations in Louisiana (WWNO and WRKF), Alabama (WBHM) and Mississippi (MPB-Mississippi Public Broadcasting) and NPR. He’s also the producer and host of Micro, a LitHub podcast for short but powerful writing.