News Roundup

Op Ed/Editorial

New Orleans CityBusiness
Op Ed/Editorial
Tuesday, April 16, 2002

Over the past few months CityBusiness has profiled several historic New Orleans neighborhoods. The ongoing “In the Neighborhood” series has so far featured the Faubourg Marigny, the Warehouse District, Fontainebleau/Broadmoor and Algiers Point. All have been on the upswing in recent years. All have seen dramatic surges in property values and average sale prices. All owe part of their success to young people. Meanwhile, city officials say homeownership increased from 42% to 47% between 1994 and 2000.

Who is responsible for this turnaround in historic neighborhoods? Realtors say they see the answers emerging: nostalgic empty nesters returning to the old neighborhoods in which they were raised; black families leaving the ranks of renters to join the ranks of homeowners; and Gen-X professionals looking for a communal, historical and architecturally rich setting.

This last group holds tremendous hope, for three reasons: 1) They’re young, and still have the stomach for major renovation projects. 2) They’re in their prime child-bearing years, and thus likely to inject a healthy dose of middle class kids into urban neighborhoods. 3) Many of them are from out of town, escaping the barren vapidity of Anywhere, U.S.A., in search of an originality only New Orleans can offer; these newcomers help counteract the brain drain.

The bottom line is that the very age demographic that since World War II has inspired economic growth in the suburbs is suddenly sending a significant portion of its number into urban centers nationwide. Diversity, once a turnoff for the “there goes the neighborhood” set, has become a selling point to a generation well-schooled in the doctrine of tolerance.

Low interest rates haven’t hurt, either. Suddenly, homeownership has become quite lucrative.

The proof is in the prices. Take, for example, real estate numbers for the area of town that encompasses Mid-City. In 1995, the average sale price was around $70,000; by last year, it had grown to $124,000 (a 77% boost). On Algiers Point, the increase was even more striking, from $56,000 in 1995, to $102,000 in 2001 (an 82% boost). Check out the numbers on historic neighborhoods across town, and the stories are similar.

The trick will be to keep it going. The tranquil suburbs will always attract young families, but urban New Orleans will need to expand its job base and keep crime down. If that happens, Gen-Xers might make history as the folks who brought New Orleans back from the brink.

04/15/2002 - Vol. 89 - Issue 94 - Page 22