NOMAR Forecast highlights opportunities for New Orleans to capitalize on statewide economic momentum

“When success comes your way, you have to be in a position to receive it. We need to focus on the details of the deal and what it is actually going to mean to our local economies,” said panelist and WWL Radio host Newell Normand. “You have to make the most of the opportunities that are presented each and every day.”

Leveraging local strengths to drive future growth

Over the past year, Louisiana officials have announced more than $250 billion in economic development projects, mostly outside of New Orleans. Yet, the region is seeing its own mini-boom, particularly with key investments in areas such as healthcare and maritime.

Drew Remson, First Horizon mortgage loan officer, noted that the Port of New Orleans expansion in Chalmette is poised to add up to 4,000 permanent jobs, which will drive local demand for housing, industrial space, and more. Michael Sherman, founder of Sherman Strategies LLC, agreed that the marine industry presents a prime opportunity for collaboration among entities from Baton Rouge to New Orleans.

“If you combine all of the ports in South Louisiana, we’re a global powerhouse,” Sherman said. “There is absolutely reason for optimism driven by mega projects across a wide variety of industries. I hope we can translate that into continued growth.”

Andy Kopplin, president and CEO of the Greater New Orleans Foundation, pointed to three major healthcare initiatives that could help drive economic growth.

Tulane University is pursuing a $500 million redevelopment of the former Charity Hospital into a center for medical research, education and innovation. Xavier University and Ochsner Health are developing a new medical school downtown. And, LSU Health and LCMC Health are pursuing a National Cancer Institute designation for their joint research center that would expand clinical trials, specialized care and oncology services.

“It’s up to us to seize this moment,” Kopplin said. “We have the chance to power the future with jobs that have been announced throughout the state, but only if we get the people who are here in Louisiana attached to those jobs with good wages and growth potential.”

Housing market shows encouraging signs as buyer trends shift

Economic development undoubtedly has a significant impact on the housing market. Dr. Gary Wagner, an economist at the University of Louisiana at Lafayette, said closed sales have been lower than historical norms for much of the past year, but have been stronger over the past six months. Currently, closed home sales in the New Orleans region are about 1,038 per month, compared to an average of 1,199 per month from 2013-2019.

“We’re still in a cool market, but I think we’re in a thawing market,” Dr. Wagner said. “What’s really holding buyers back is the cost of financing, driven by national conditions.”

Many home sales have been on the Northshore, particularly St. Tammany Parish, Dr. Wagner said. He noted that most local housing inventory is at higher price points and concentrated in areas such as the Central Business District, French Quarter, Treme and Marigny.

Dr. Jessica Lautz, deputy chief economist and vice president of research at the National Association of REALTORS® said local real estate professionals should be mindful of the changing demographics of today’s home buyers. The average age of a first-time home buyer has reached a record high of 40 years old as younger people face rising inflation, student loan debt and childcare costs. Baby boomers are also making “housing trades,” or leaving their longtime homes to relocate closer to family.

“They are following their grandbabies,” Dr. Lautz said. “They say they want to downsize, but the data says they often don’t. A lot of them have built housing equity, but they don’t know what that means for the next steps. We do not talk a lot about first-time home sellers. That is an opportunity in the marketplace for REALTORS®.”

AI drives investment and everyday innovation

Artificial intelligence is creating new opportunities for Louisiana’s economy while offering businesses practical ways to improve efficiency, strengthen customer relationships and remain competitive. Meta, Amazon, Fluidstack and Anthropic are among the companies that have announced plans to build data centers in the state.

“This is Louisiana’s main character energy moment,” said Josh Fleig, Louisiana Economic Development’s Chief Innovation Officer. “When we talk about $260 billion in capital expenditures in Louisiana right now, that is different in several orders of magnitude. That is largely being driven by our ability to power super intelligence.”

While AI investments may transform Louisiana’s economy, keynote speaker Terry Watson said AI tools can help professionals streamline their work and build resources that will give them more time for meaningful discussions with clients.

“AI is like a kid. You need to train it. If it does something you like, tell it is phenomenal. If it does something bad, you have to tell it this is not what you want,” Watson said. “Never accept AI telling you it cannot do something. Get creative. Find a workaround. A response is not a wall. It is an opening offer.”

Watson added that professionals can distinguish themselves from competitors by earning AI certifications and experimenting with different platforms.

“The future of AI is not chat,” he added. “The future of AI is agents as personal assistants.”

Ultimately, Forecast speakers agreed that Louisiana’s economic momentum presents significant opportunities for Greater New Orleans, but the challenge lies in turning major investments into tangible benefits. However, with continued collaboration among public and private leaders, there is optimism that the area will attract new investment, create sustainable jobs and build a more competitive long-term economy.