Industry News

Housing is key to economic growth in New Orleans

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Housing deficiencies may restrain economic growth in the hurricane-ravaged New Orleans metropolitan area, and it will take about 50,000 housing renovations per year over the next three years to counter the projected shortage, according to a study prepared by an economics professor at Louisiana State University. The study, supported by a research fund of the Financial Services Roundtable, reports that 71 percent of the damaged housing stock in the area must be renovated over the next three years to accommodate projected job growth, in addition to the construction of an estimated 13,500 new homes each year. The financial services roundtable is a forum for U.S. financial services companies, and its members include major mortgage, banking and insurance companies. Katrina killed about 1,000 people and was the costliest hurricane in U.S. history. The Insurance Information Institute estimated in October 2005 that insured losses associated with Katrina totaled about $40 billion. The...