New New Orleans is here: Part 1, the people

January 15, 2009 | Cities, Katrina, New Orleans

[Click here for an archive of my 2005 New New Orleans posts.]

 

Three years in, what has New New Orleans become?  A month ago I was back in the Big Easy for the first time since Katrina.  Did the city bear more resemblance to my optimistic view (Venice on the bayou) or my pessimistic view (Galveston with unemployment)?

 

Thumbs_up_thumbs_down

Which would it be for New New Orleans?

 

I was in New New Orleans at an AHIC conference that included a vivacious and knowledgeable lunchtime speaker, Allison Plyer from the Greater New Orleans Community Data Center, followed by a bus tour of the flooded sections including the infamous Lower Ninth Ward.

 

Lower_ninth_ward_red

Called ‘lower’ because it’s farther below sea level than the other half of the Ninth Ward

 

In September, 2005, when Hurricane Katrina hit New Orleans, I was in Cairo, Egypt, working under a USAID contract on a strategic and business plan for an Egyptian housing finance agency.  Sitting at my makeshift USAID-funded desk (“A gift from the American people”) in the idle times between meetings, I wrote a blog post that began:

 

Usaid_people

This blog post is a gift from an American person

 

However it is rebuilt, the New New Orleans will bear little relation to the Old New Orleans:

 

Asked in the interview whether it made sense to spend billions rebuilding a city that lies below sea level, House Speaker Dennis Hastert replied, “I don’t know. That doesn’t make sense to me.”

 

Dennis_hastert 

Any resemblance to King Canute is purely coincidental …

 

However clumsily he phrased it, Speaker Hastert has squished his enormous foot into a highly relevant question, because by the time the water is pumped out, much of the Old New Orleans will be unsalvageable:

 

Many of the houses will be total losses.  Now immersed in what amounts to sewer water up to the roof, many houses may remain under water for weeks or even months.  Insulation, wiring, ductwork and other systems will likely be ruined, said William Coulbourne, a structural engineer with URS Corp. in Gaithersburg.

 

Wapo_new_orleans_flooded_050901

And wood immersed in water for protracted periods rots …

 

In my pessimistic view, New New Orleans would shrivel and become an urban ghost, a Bayou Torcello, or worse, a soggy organized-crime sin palace like Atlantic City:

 

The historic analogy for New Orleans is Galveston. For 60 years in the 1800s, that coastal city was the most advanced in Texas. It had the state’s first post office, first naval base, first bakery, first gaslights, first opera house, first telephones, first electric lights and first medical school.  Then came the hurricane of Sept. 8, 1900.

 

Galveston_hurricane_3

 

Galveston today is a charming tourist and entertainment destination, but it never returned to its old commercial glory.

 

Why?  Because Galveston lost out to Houston:

 

The leaders of Houston took one look at what the hurricane had wrought and concluded a barrier island might not be the best place to build the major metropolis that a growing east central Texas was going to need.

 

That makes the future Baton Rouge look a lot like the present Houston.

 

Three years on, what have we got?  The Greater New Orleans Community Data Center is upbeat, citing ‘a position of strength’:

 

Text 6-1

 

Yet even in that first paragraph, the statistics tell a more complex story.  As Allison Plyer, the Center’s chief researcher, told us in a lunch speech, before Katrina, the City of New Orleans had a population of 484,500; today, only 72% of them have returned, giving the city a population of roughly 325,000. 

 

 

The metro area has recovered more than the Big Easy itself

 

Yet 88% of the city’s pre-Katrina jobs are back. 

 

Table 11-1

Metro area employment

 

After losing roughly 180,000 jobs (metro-wide) through Katrina, the area steadily recovered employment through 2006, and even through 2007 (although at a dwindling rate.  Job growth in 2008 has been essentially flat.

 

This arithmetic yields a simple syllogism:

 

28% of the people held only 12% of the jobs

 

The huge diaspora splashed across America – many, in a bit of hurricane-relocation irony, to Houston – and, if the statistics speak truly, most of those who have not returned were under-employed if not unemployed when they left.  Some of them, as reported in a Washington Post profile, are much better off in their new surroundings (e.g. Atlanta).  For the city they left behind, the result is a stunning positive: before Katrina, unemployment was 16.0%; today it is 3.3%. 

 

Table 11-2

 

As I wrote only two months after the storm:

 

Even as Paris suffers through the hideous consequences of malignant income over-­concentration, back home Hurricane Katrina has done what three decades of well-meaning urban social policy could not: it has decisively and permanently deconcentrated poverty from Old New Orleans.   

 

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New Orleans public housing, 2001

 

Old New Orleans was one of the nation’s sickest cities, with declining population, a shrinking employment base, high poverty (23%), and high unemployment (15%).  In terms of economic demography, Katrina did two things simultaneously:

 

1. Scattered the poor across the country.

2. Created an unprecedented labor opportunity for those in the building trades.

 

Who comes back first?  Those who are mobile: the affluent and the economically hungry.  If you wave money, they will come, as this New York Times article reports:

 

Workers from all over have been pouring into Louisiana, some bused in by contracting companies, others simply turning up on their own in search of jobs. While nobody seems to know how many are here, there is plenty of work; the federal government estimates it will spend more than $450 million just to clean up hurricane debris.

 

Who comes is not who left.

 

Those who have returned or immigrated have fewer children than those who left:

 

Table 9-3

“School enrollment lags population recovery”

 

That demographic swap is highlighted in the Center’s report, which noted “the number of Hispanic students in metro area public school has increased each year” to 5.9% in 2008, versus 3.9% before Katrina.  This is also off a smaller school population base: 14% of the families not returning took with them 24% of the school-age children. 

 

Though the Center strives mightily to suggest ongoing recovery, its own statistics show that the New New Orleans we see today is the stable state, and its future growth will be normally organic:

 

Text 6-2

 

That’s also seen in the statistics on applications for and closing of “Road Home” reconstruction housing:

 

Table 13-1

 

When your applications for roughly $60,000 apiece in free money have stopped dead for nine months, you can officially declare your rebate period over.

 

What does this new demography mean for the city?

 

Neighborhoods_orleans_parish

 

[Continued tomorrow in part 2.]

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