With all of the Louisiana Flooding, the residents of the affected areas are in desperate need of housing. With 11 people dead, 8,000 in shelters and upwards of 40,000 homes destroyed, the flooding in Louisiana has decimated thousands of lives.
Where Will Displaced People Live?
Anytime you have a massive flood event like what we have seen in Louisiana, when tens of thousands of people are displaced overnight, housing becomes an issue. Many of the residents of Lafayette, Baton Rouge and other smaller cities in the general area are currently staying either in shelters or in hotels. With the recent Federal Disaster Declaration, federal funds will become available for temporary housing, but that doesn’t do much for the immediate need for housing now.
Like Deja Vu?
Many of the same residents currently being affected by the flooding are the same people that went through having to relocate during Hurricane Katrina a little over 10 years ago. In addition, many of the homes affected by the August floods, were just getting their homes back together from recently flooding in March of 2016. As of now, Louisiana still has many people still in need of evacuating.
What Happens To Property Values?
After a major natural disaster of this magnitude, we generally see many “investors” flock in to attempt to purchase “flooded and gutted” homes at discount rates. This is possible because when a homeowner gets compensated from their flood insurance policy, they generally have the funds to pay off the remainder of the home, thus allowing them to sell the home to an investor. Once the investor rebuilds the property, the home values of the entire area go up, like they did after Hurricane Katrina. The most notable of this type of real estate recovery was the subdivision of Lakeview in New Orleans. As previously mentioned, after Hurricane Katrina, Lakeview homes for sale saw a resurgence in popularity as well as an increase in property value. Lakeview has seen a total gentrification of the entire area since all of the homes were rebuilt. Now, Lakeview has become one of the hottest real estate markets in the country.
Still Not Over
Although we are talking about how the property values will most likely increase in the flooded areas of Louisiana, this is of little comfort to those currently displaced. It appears that with rain still in the forecast and the ground totally saturated and nowhere for any rain to runoff, the flooding problem in Louisiana could get worse before it gets better.