Baton Rouge and New Orleans in Top Ten Recovery Markets
Based on building permit data, price information, and employment statistics, monitored metro areas and smaller towns are running at 90% of what is considered a normal housing economy according to the National Assocation of Home Builders / First American Leading Market Index (LMI). The LMI was established during the Recession to monitor the recovery of a selection of markets throughout the United States from the catastrophic results of the Recession. According to the numbers in November, 66% of these markets showed improvement and 7 new markets either returned to “normal” or exceeded normal activity and growth year-over-year.
“The markets are recovering at a slow, gradual pace,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. “Continued job creation, economic growth and increasing consumer confidence should help spur pent-up demand for housing.”
The top market in the list of the 350 select markets chosen by the NAHB is Baton Rouge, Louisiana which has already returned to normal activity and is now exceeding all expections. The LMI score for Baton Rouge is 1.39 which means that it is 39% better in housing growth and employment than its normal market levels. In the list of the top ten markets which have LMI scores that either meet or exceed normal levels, New Orleans is also included in that list, making Southeast Louisiana a “booming” recovery zone when it comes to real estate.
“An uptick in the number of single-family permits, which is currently only 44 percent of normal activity, is the key to a full-fledged housing recovery,” said NAHB Chief Economist David Crowe. “In the 17 metros where permits are at or above normal, the overall index shows that these markets have fully recovered.”
Luckily, building permits overall rose 1.4% nationwide and are up 8.8% in the South. A testimony to how well the Greater New Orleans area is doing economically is the fact that the unemployment rate nationally is at 6.1%, in New Orleans it’s 5.1%, and in the 2nd quarter of 2014, St. Tammany Parish’s unemployment rate dropped over 20% from 2013’s unemployment rate to just 4.4%. Building permits in St. Tammany Parish rose to 315 for single-family homes in the 2nd quarter of 2014 which is a 23.5% increase year-over-year. Also, new home sales went up by 11.1% year-over-year in the same quarter for St. Tammany Parish as well. This speaks strongly as to how much real estate affects the economy, even locally in the Greater New Orleans area. For More Information about building a new home in St. Tammany Parish, contact local builder Ron Lee Homes at 985-626-7619 or E-mail [email protected].
