By: Philip Ewbank
I had the pleasure of attending the Urban Land Institute’s 10th Annual Emerging Trends in Real Estate Seminar here in New Orleans.
Here my top 3 findings I think you will find interesting:
1. Innovative Downtown Development shows Elevating Housing Demand
Unique to New Orleans and the entire Gulf South, two new development projects in Downtown New Orleans indicate a rise in tenants in the area. Both projects are located on the same city block, one featuring car elevators and another communal living. These buildings reports to investors: developers expect Downtown density to rise.
Aptly named The Garage, the futuristic luxury apartment complex is to be built on 848 Carondelet and is modeled after the 50’s era car dealership that parked before it. The Garage will feature the Gulf South’s first single car elevators delivering tenants directly to their floor. Developers choosing to undertake the expense of car lifts show that tenant living space provides more value than traditional parking lots.
The same block features the communal apartment complex: Two Saints. The first New Orleans co-living concept, Two Saints will kneel on the corner of St. Joseph and St. Charles providing tenants with shared kitchens, pool, gym, sauna and laundry rooms.
Communal living is becoming increasing popular in major US cities and it’s easy to see why. For less space, owners are able to rent to more tenants increasing profits and – studies show – lessening risk of default on payments. Renters have a great advantage as well; communal living offers lower rent and the opportunity to live in the heart of the Crescent City.
2. Boom to Mid City Property Value: Major Apartment Complex Development
Mid-City has long been forecasted as an emerging market for young professionals. Developers are listening and are transforming vacant warehouses into a 382 unit apartment complex embracing the Lafitte Greenway.
The addition of 382 units to Mid City reveals predictions that the area will increase in density dramatically over the coming years. Young professionals, families, and retirees moving to these apartments brings a swathe of new opportunities to local businesses and investors.
Positioned along the Greenway, this complex will offer local businesses commercial space frequented by passing cyclists.
3. What are the Experts Saying? Trends in Real Estate
Investments in NOLA? Is 2019 a good year for the market? Andy Warren, director of Real Estate Research for PWC believes the answer is: “Yes!”
Andy discussed with ULI the US economy’s journey since the 2008 financial crisis and how 2019 investor confidence continues to be positive for real estate, both in the US and New Orleans.
The Big Easy continues to be a unique market and one that data indicates great potential for future investment. Compared to the Top 20 largest cities in the United States New Orleans ranks top on the Affordability Housing Index and ranks lowest in the Cost of Doing Business Index as reported by Moody’s Analytics.
More young professionals moving to the city affirms the execution of higher density development projects benefiting the surrounding market. Andy posits that the New Orleans real estate market is on pace for steady growth and will continue to be a great opportunity for investors.