re: Where does the money come from to support home prices in Lakeview?

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and Holy Cross ain’t even dere no mo

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The only thing left at the old Holy Cross site is the big red brick dormitory near the levee that they housed students in.

That's been slated for conversion into condos for years now. The site where the actual school was is cleared and they also have 2 large fields that go with the property, one between Dauphine and Burgundy and the other between Burgundy and N. Rampart that were used as practice fields for their ball teams.

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Yes, certainly this is different

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I think that dynamic speaks to the OP's question of where all of this high end home demand comes from, and probably the overall housing run as well.

Back in the real estate/financial crisis of 2012, those people in there mid 40's today were in their mid 30's (duh) and likely at the beginning stages of looking to upsize from their first/starter home. An extremely large majority of them and others held on to that first home back then as they were likely flat or upside down on their mortgage at the time.

Couple that with a blazing economic recovery/correction beginning in 2013-14, followed by covid restrictions decimating the supply of new construction, along with covid fears of another 2012 financial crisis slowing real estate investment, followed by another huge bull market correction and you have a perfect storm for a run on higher end homes.

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Modern monetary theory. Check it out. It will fail. It just hasn’t yet.

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I just read the full write up on Investopedia.

I think we are living the experiment right now.

Buddy of mine and his wife just bought in Lakeview last year. He’s a doctor and she’s a dentist. Their combined household income is around $800k per year.

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Just think how many doctors, and staff that the Saints and Pelicans employ alone.

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This, plus tourism, is probably the only thing the current New Orleans economy has that other cities its size don't that might help build and create new wealth.

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Now think the Salary of a Tulane, UNO, Professors.

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Most other cities that size have at least one CC and at least one Uni. So this isn't a big differentiator over places like Birmingham, Memphis, Nashville, or even Baton Rouge.

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Now think how many hospital are in New Orleans, think doctors, lawyers, administrators.

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Same as above. Most cities with 800,000-1,500,000 metro are at least regional medical centers. Birmingham, Memphis, Baton Rouge, etc all have similar setups with huge draws. But none of them really compete with Houston or Atlanta. And neither does New Orleans, despite having $billions of state and federal taxpayer dollars to prop it up.

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New Orleans has money and it’s easy to make because of how “small” that city is compared to other major metros.

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Make no mistake, New Orleans is coasting on wealth that families earned there generations ago and public sector dollars that are shoveled into the city and parish coffers. That's the big difference between NOLA and a place like Mobile or Baton Rouge. That's where New Orleans actually does compete very well outside of its weight class.

Unfortunately for people outside of that old world economy or in the political class....New Orleans doesn't even have a handful of major corporate HQs with extremely wealthy early investors hovering around like Memphis. Being a Louisiana city, it does have a fairly robust industrial base which is something that sets it apart from a lot of cities its size. But it's still not a hub for new companies or even corporate relocations. And the unfortunate trend in Louisiana is for home grown firms to relocate to places like Atlanta, Houston, or Nashville. Not to stay in the state and build a workforce in Louisiana's largest city.

The big question I have is if New Orleans can use this handful of old (by American standards) money families to drive new outside investment and generate new wealth, or will it continue to decline and go the way of Charleston and become a port with a tourist draw...but not much else.

Or will it become the economic driver the state needs it to be, but hasn't been for 40 years. Because that's what it needs to be.

It's 2022, and New Orleans has fewer residents today than it did in 1960. If it were competing with Houston and Atlanta the way it should have been, Baton Rouge and Hammond would merely be a satellite cities in major metro area centered around New Orleans. Sort of how San Jose is to San Francisco. And Southeast Louisiana would be a massive, robust economic center with a wide variety of industries.

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They had a house on Flood St. near the river sell for over $400K a few weeks ago.

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This one?

LINK



1651 sq ft. 3 BR/2 BA in the Lower Ninth Ward, listed for just a hair under $400k.

Absolutely insane.

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Keep considering moving to Mandeville



Explains a lot

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What does it explain?

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This, plus tourism, is probably the only thing the current New Orleans economy has that other cities its size don't that might help build and create new wealth.

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film and tv is still pretty big. Lots of people do very well in that business.

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neighbor works for shell/Wife is SAHM. Next to them is a doctor/engineer, next to them is a pharm rep/contractor, next to them is two newscasters, next to them is a retired couple, Next to them is a nursing school renter, next to them is a paper company owner/SAHM,

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First, I don't know if I should be impressed or concerned that you know your neighbors that well.

Second....did these people all buy in the last 10 years when prices started climbing? Or are they long term owners that bought when the housing was affordable?