Industry News

Katrina flood damage repairs may cost $10 billion

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The cost of repairing the 95,000 properties in New Orleans damaged by floodwaters from Hurricane Katrina will total between $8 billion and $10 billion, according to a study released today by the Mortgage Bankers Association, a mortgage industry trade group. The study used property level damage reports on more than 117,000 properties inspected in the city of New Orleans and applied repair cost estimates based on structure types, location, degree of damage, and current builder quotes. It was written by MBA's Vice President of Research and Economics Jay Brinkmann and the President of Real Property Associates and retired head of the Real Estate Market Center at the University of Orleans Wade Ragas. Major findings of the study included: Of the estimated 143,000 single-family (1- to 4-unit) residential structures in Orleans Parish, almost 95,000 suffered some degree of flood damage. On the East Bank of the city, roughly two-thirds of the single-family structures suffered flood damage equa...