20 Years After Katrina, New Orleans is More Unaffordable Than Ever

The city’s post-hurricane redevelopment has failed to include its most vulnerable residents.

1 minute read

September 2, 2025, 10:00 AM PDT

By Diana Ionescu @aworkoffiction


Bright yellow, pink, and green historic wooden houses in New Orleans, Louisiana.

Historic homes in New Orleans, Louisiana. | Nina Alizada / Shutterstock

After Hurricane Katrina destroyed roughly 134,000 homes in New Orleans, officials including President George W. Bush promised to build the city back “higher and better,” writes Ryan Kushner in Smart Cities Dive. Yet housing affordability is worse than before 2005, and many displaced residents never returned.

“Today, the median sales price for all home types in New Orleans is $335,000, according to Redfin. That price is up nearly 10% compared with last year, putting New Orleans among the 10 cities with the fastest-growing home sales prices in the U.S.” Meanwhile, the percentage of rent-burdened residents grew from 24 percent before Katrina to 34 percent in 2024, and there were 10 percent fewer housing units in the city in 2020 than there were in 2000. 

Despite the issues, the city is making some progress. “Last year, voters approved a Housing Trust Fund that allocates at least 2% of the city’s annual budget for affordable housing projects. The fund is expected to bring in around $17 million a year for local affordable housing.” But with federal housing assistance like housing vouchers in jeopardy, New Orleans residents could face even more challenges in finding affordable housing.

Wednesday, August 27, 2025 in Smart Cities Dive

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

October 28, 2026 - Zachary Whalen

A car drives through a puddle, making a large splash. Rain pours down.

California plans to bury El Niño’s downpour

If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.

October 28, 2026 - Grist

A pencil rendering of Foundry Park, which shows skyscrapers and public green spaces.

Chicago breaks ground on $3 billion megadevelopment

The new neighborhood, titled Foundry Park, will one day host 3,700 residences.

October 23, 2026 - Chicago Sun Times

A rendering of a high speed rain station in California, with wide platforms and a sleep train with yellow highlights.

California High-Speed Rail Authority CEO resigns after $600,000 scandal

Under Ian Choudri, the authority used taxpayer dollars to fund first class flights and trips to nightclubs.

October 30 - Cal Matters

 A bridge stretches across the Missouri River at Chamberlain, South Dakota.

Want to study the Missouri River? Soon, you may need unanimous approval from 10 states

Legislation would require 10 governors’ permission to study or build projects moving water outside the basin.

October 30 - South Dakota Searchlight

Lake Powell with much of the water evaporated.

Desperate measures: Advocates weigh draining Lake Powell to fill Colorado River

Draining the reservoir could reduce evaporation losses by a couple hundred thousand acre-feet.

October 30 - Yale Environment 360