Axios reported in March of this year that the New Orleans metro area is estimated to have seen the biggest population loss among those with at least 500,000 residents nationwide.
The metro's 4.3% population loss in the past three years came as the nation's population increased by 1%. From 2020-2023, the city lost 45,000 residents and Louisiana still hasn’t recovered all the jobs lost during the pandemic.
Soaring insurance costs coupled with property tax increases and record inflation caused New Orleans metro to be one of the worst-performing housing markets in the country in the fourth quarter of 2023.
Much of this value destruction affects middle and low-income homeowners across New Orleans submarkets including New Orleans East, Treme and Gentilly. ?
The unfortunate reality affecting almost all of us is population flight. Anecdotally, it is painfully apparent that many New Orleanians are fed up with a soaring cost of living, sharply higher insurance and taxes paired with inadequate city services, political controversy and lingering investigations. I personally have seen seven family members depart for Texas and Florida.
The Advocate | The Times-Picayune recently highlighted that on average, it takes about a full year to get a pothole filled in New Orleans. In Baton Rouge or Nashville, Tennessee, it is roughly two weeks.
Meanwhile, nearby Southern states like Florida, Texas, Tennessee, South Carolina and even Mississippi are enjoying strong population and economic growth.
Nick Hansel
Greater New Orleans Inc. and Mayor LaToya Cantrell’s administration need to explore and implement an incentive program targeting remote workers, similar to Tulsa Remote in Tulsa, Oklahoma.
Tulsa Remote is an application-based program providing resources to help newcomers (from out of state) “thrive within an active and supportive community, while granting them $10,000 to make Tulsa their new home.” According to CNBC, as of the end of 2023, Tulsa Remote had attracted over 2,500 remote workers. Despite only a 12-month requirement, nearly 90% stay longer.
New Orleans has tremendous natural advantages and could attract remote workers with significantly less financial impact (perhaps $400 per month for 12?months).
If GNO Inc. were to allocate $24 million, could attract about 5,000 talented remote workers excited to relocate to New Orleans. The return on investment would be tremendous. By 2025 in Tulsa, the program is projected to create more than 5,000 new jobs and generate around $500 million in new labor income. For every dollar spent on the program's remote worker incentive, there is an estimated $13.77 return in new local labor income.
Remote workers tend to work in industries such as technology, marketing, finance, and education. Many have hard skills and are entrepreneurial by nature. Attracting this human capital should be a targeted goal at GNO Inc. and City Hall. According to Forbes, by 2025, 32.6 million employees, more than one-fifth of the U.S. workforce, are estimated to be fully remote. As of 2023, 12.7% of workforce is remote.
Tulsa Remote alumni have had positive impacts on the local economy and some never leave. Of those who choose to stay, 18% start businesses, 11% join local nonprofit boards and over 4% have founded nonprofit organizations.
New Orleans is a vibrant community and an international tourism destination. Its food and beverage offerings are without equal. It is one of the few American cities with two medical schools, soon to be three with Xavier University’s partnership with Ochsner. Advanced manufacturing, energy investment and a growing tech ecosystem provide reasons for optimism.
To live in New Orleans is to love it. Despite flooding, crime and numerous challenges, it is a city of hope. As Lafcadio Hearn wrote: “There are few who can visit her for the first time without delight; and few who can ever leave her without regret; and none who can forget her strange charm when they have once felt its influence.”
Let’s incentivize more people to embrace the chance to fall in love with this great city.