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

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