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Following up on our earlier post, Edgar Olsen, a professor of economics at University of Virginia  has testified to Congress on the needs of the low income population of the Gulf Coast.

Edgar Olson’s Take on the situation:

“The immediate need of most people displaced by Hurricane Katrina is permanent housing. This need is especially pressing for the poorest people who have no savings to use in an emergency. Now located in temporary housing throughout the south central region, these families cannot wait for new housing to be built.

“Fortunately, new construction is not necessary to solve the immediate problem. Enormous numbers of vacant units in the region are available for immediate occupancy by families with the ability to pay rent — and a simple expansion of the Department of Housing and Urban Development’s largest housing program would provide even the poorest families with the means to rent these units. The Section 8 Housing Choice Voucher Program currently serves about two million families throughout the country. It enables participants to occupy privately owned units renting for up to, and somewhat above, the local median rent. Enormous numbers of vacant units could be occupied immediately by families with these housing vouchers.”

Our take is that low income housing properties are going to increase in value dramatically, and with the infusion of federal dollars into the housing market, both new and rental, housing prices are going to rise as will construction costs.

Related posts:

1. Real Estate Speculation Moves in to the Gulf coast States following hurricane Katrina & Rita
2. Real Estate Speculation Moves in to the Gulf coast States following hurricane Katrina & Rita
3. Gulf Region May Get Extension For Low Income Housing Tax Incentives
4. Japanese Billionaire Kawamoto renting 8 Luxury Homes to Low Income Families for 150 Dollars a Month
5. Broward County Private Public Low Income Housing