New Orleans, LA is a city in transition – from its infrastructure to its people – as it continues to recover and rebuild from the devastation caused by Hurricane Katrina in 2005. In the aftermath of Hurricane Katrina, New Orleans lost over half of its 455,000 population. Since then people have been returning to the Big Easy. The city’s population grew by the largest percentage change (3.8%) of all U.S. cities between 2008 and 2009, and as of the 2010 census was home to 344,000 people, 111,000 fewer than before the hurricane.
- Households with Assets: The number of households in New Orleans with at least one financial asset account rose from 113,000 to 115,000 in 2010.
- Retail Card Balance: Average retail card balance in New Orleans was $425 in December 2010, compared to a U.S. average of $322. Write-off rates on these retail accounts have declined 45 percent from their recession peak.
- HELOC and First Mortgage: The average home equity line of credit balance among mortgage borrowers with HELOCs in New Orleans increased by $1,470 in 2010 to $52,280. First mortgage balances rose $400 to $145,960.
- Income: Average household income fell 4.3 percent, equivalent to a loss of $3,000, in 2010. New Orleanian average household income was at $77,230 in 2010, roughly equivalent to the average incomes for households living in Memphis, TN and San Antonio, TX. Income losses were concentrated in households with income greater than $250,000.
- Total Assets and Asset Allocation: Total financial assets of households in New Orleans grew by $2.3 billion in 2010. Total average household financial assets excluding real estate and retirement assets in 401(k) and 503(b) accounts grew by $1,890, a rise of 1.7 percent. There was a significant shift from deposits to investment accounts; holdings in investment accounts rose $2.6 billion, while total deposit balances decreased by $0.3 billion. Within deposit accounts, the greatest loss was seen in withdrawals from CDs and money market accounts, totaling $1.35 billion, while savings account balances grew by $0.7 billion. Holdings of stocks not in mutual funds grew by $1.3 billion and mutual fund investments rose by $0.9 billion over the year.
New Orleans has a diverse economy, based on tourism and entertainment, petroleum extraction, refining and petrochemical production, and the fifth largest and busiest international port in the U.S., which will continue to support the city’s rebirth in the coming years.
