A prolonged recession and a tight credit market would cripple New Orleans’ still-fragile recovery from Hurricane Katrina, delaying or eliminating road work, new construction and repairs to homes and businesses that have stood empty since 2005.
The city’s infrastructure plans should stay on track, but a real estate expert calls it a “terrifying” scenario: A lack of sufficient credit would smother companies trying to start up or expand, and with them the new jobs needed to grow the area’s economy. It would choke the flow of cash that developers need to build new homes and first-time homeowners need to buy them. And it would make it tough for the city to sell bonds to finance rebuilding projects on its appointed timeline.
Parking lots and buildings slated for reincarnation as gleaming high-rises might never move beyond blueprints. Small businesses, a lifeblood to the economy and neighborhood anchors, may never reopen or expand.
What is sad about the New Oleans area is the number of persons wanting to go back into areas subject to flooding because of the below sea level area where once houses stood. A similar situation occurred in in the St Charles MO Missouri River area. Numerous bankside homes were flooded and damaged beyond saving during 1983. They were insured so the insurers paid but they also warned the homeowners to not build in floodplain areas again because they were not going to insure the property again. Not too many years later the flood area was inundated again. The houses were not issured and the people left. The remains of the houses remained vacant and if they haven’t been torn down by now they may still be there.