Irish Channel Values Are Tipping
Extending from Louisiana to Jackson Avenue and Magazine to Tchoupitoulas Streets, the Irish Channel is one of the older developed suburbs of the New Orleans market. It was initially developed during the 19th century and was home to working class immigrants of all backgrounds. While primarily residential in nature, the neighborhood had a number of commercial, mixed use, and industrial properties scattered throughout it, especially along the Tchoupitoulas Street corridor.
As the city’s footprint expanded and population subsequently declined, this neighborhood suffered greatly. Recent years, however, have a seen a great resurgence of this neighborhood. The chart below summarizes pricing in this neighborhood over the last ten years. As indicated, after a brief spike following Katrina, values slumped during 2009 thru 2010 before starting to climb. Since 2010, both the average home price in the neighborhood and the average price per square foot have more than doubled.
It should be noted that this data reflects ALL sales. Those properties which have been renovated or are new construction are frequently topping the $300.00 per square foot benchmark. What has caused this trend? As price points in the nearby Uptown and Garden District neighborhoods have skyrocketed, the Irish Channel has emerged as a viable alternative.
Developers and builders are actively taking advantage of this trend identifying properties ripe for redevelopment. Lots which once sold for prices in the $5.00 to $15.00 per square foot range or now frequently selling for north of $40.00 per square foot with better located parcels situated more proximate to Magazine Street topping the $70.00 per square foot mark. While some builders are renovating older homes, other developers are targeting larger tracts of land improved with older warehouse buildings with the intention of demolishing these buildings to make way for single family development.
No development epitomizes this better than the former Turnbull Bakery site, now the planned Baker Village. Public records show that this 1.81 acre tract was acquired in July 2015 for $2,200,000. The 80,000+ square feet of warehouses were subsequently demolished and the lot re-subdivided into 15 single family residential lots now awaiting construction. Anticipated pricing for finished homes will range from $610,000 to $846,000, or around $280 to $290 per square foot. Lots ready for development are being priced at $75 per square foot.
As high home values continue to spill into this market, we anticipate this trend continuing and expect many of the older warehouse buildings to be demolished for continued residential redevelopment. At some point in the near future, this could very well lead to more mixed use and retail development for this neighborhood as well.