Speculators Rushing In as the Water Recedes

It sure as hell didnt take them long did it, there goes the the poor out the door didn't you know it was going to happen

By David Streitfeld
The Los Angeles Times

Thursday 15 September 2005

Would-be home buyers are betting New Orleans will be a boomtown. And many of the city's poorest residents could end up being forced out.
Baton Rouge - Brandy Farris is house hunting in New Orleans.

The real estate agent has $10 million in the bank, wired by an investor who has instructed her to scoop up houses - any houses. "Flooding no problem," Farris' newspaper ads advise.

Her backer is a Miami businessman who specializes in buying storm-ravaged property at a deep discount, something that has paid dividends in hurricane-prone Florida. But he may have a harder time finding bargains this time around.

In some ways, Hurricane Katrina seems to have taken a vibrant real estate market and made it hotter. Large sections of the city are underwater, but that's only increasing the demand for dry houses. And in flooded areas, speculators are trying to buy properties on the cheap, hoping that the redevelopment of New Orleans will start a boom.

This land rush has long-term implications in a city where many of the poorest residents were flooded out. It raises the question of what sort of housing - if any - will be available to those without a six-figure salary. If New Orleans ends up a high-priced enclave, without a mix of cultures, races and incomes, something vital may be lost. >>>continued


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