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The Guardian - UK
The Guardian - UK
World
Jamie Wilson in Baton Rouge

Refugees turn little neighbour into big boomtown

For centuries the city of Baton Rouge has played second fiddle to its bigger, brasher and hipper neighbour. But with New Orleans destroyed, the little known capital of Louisiana is suddenly finding itself in the unusual position of being the most desirable zip code in the state. One US newspaper described it as boomtown, with the housing market going through the roof, hotels full for miles around and stores and businesses doing a roaring trade.

When French explorers came upon what was to become the site of the city in 1699, they found sticks smeared with animal blood stuck into the ground to mark the hunting grounds of the Houmas and Bayougoulas Indians - hence the moniker "Red Stick". But now instead of animals, it is houses that have become the most desirable prey in a city that has more than doubled its population since Hurricane Katrina swept in off the Gulf coast, from around 227,000 to over 600,000.

According to Judy Burkett, president of the Greater Baton Rouge Association of Realtors, house prices have risen more than 20% since the storm, with more than 2,000 homes sold in less than 10 days. "I've got business to do, I'm too busy to give interviews," she said yesterday before hanging up the phone.

Stories abound of properties being bought without the purchaser bothering to look around. Kyle Peterson, who sells homes for Remax First Realtors, one of the biggest estate agents in the area, described the last 10 days as a "wild ride". The rental market in Baton Rouge was exhausted within 24 hours of the storm, and since then just about every house for sale has been snapped up as well. "We've seen houses that would have been slow to sell go very quickly with full asking prices or above," he said.

"People who were thinking about selling are now putting their houses on the market to try to make the most of the bubble. People are offering cash by plundering their retirement funds or borrowing money from relatives just to make sure they don't miss out on a sale."

The hotel sector is no different. The Sheraton, just off Government Drive in the downtown district, has been full since the hurricane. In fact it has been more than full: several New Orleans companies have taken over the conference rooms in the hotel and casino, brought in army-style cots and lined them up in dormitory-style rows.

Despite the impossibility of getting a room more than 75 people have been calling every day, just in case a vacancy has arisen. "People are pretty desperate," said Randi Shaffer, 22, front desk manager. "I had one woman come in who put her hand out and said: 'Maybe this will help.' She was holding a $100 bill, but I just had to tell her I was really sorry but there were no rooms."

The Sheraton has put up the full signs until October, but Ms Shaffer believes it will be much longer than that before any of their current guests leave. "Where else do they have to go?" she said.

The commercial real estate market is also at a premium. The Baton Rouge Chamber of Commerce has four people working full time updating the list of available office and industrial space, as major corporations, including the New Orleans law firm of Jones Walker, set up shop outside of the ruined city. "Class C properties that have sat vacant for years are now being taken up by businesses looking for real estate," a spokesman woman said. "It is a tremendous boom. We know that some of this is temporary but we also know that some of it will be permanent, and we are just working hard to make sure that as much business stays in southern Louisiana as possible."

At the Shell petrol station on College Drive the queues for the pumps lead back on to the road. "It's been crazy," said Ebony Hayen, 23, shaking her head. "We've had fights outside. The gas has been running out every six hours, and I guess we must have had at least four times the number of customers that we usually have."

Across the road at the Albertsons food store Mary Thompson, a pharmaceutical technician, said they had had to bring in special deliveries of drugs to cope with the demand. "We have heard some really heartbreaking stories," she said. "People who basically left with nothing, not even their medication." The store's grocery section has been getting round-the-clock deliveries of food and household goods to try to meet the demand. "People are just buying everything," Mrs Thompson said.

But many residents of the city, including Mrs Thompson, are not entirely happy with the new Baton Rouge. "We were just complaining this morning that what should have been a 10-minute drive to work took more than 45 minutes. I just wish it would go back to the way it was," she said. The chamber of commerce estimates that as many as 100,000 of the current evacuees in the city may stay permanently, and one city official, who did not want to be named, said the infrastructure was wobbling.

"Our traffic counts are showing vehicle movements are up 45%, there has been a massive influx to the school system, and all our public services from the police to the sewage to the school system are under pressure. We are going to have to think hard about what happens next."

While the people of Baton Rouge have been nothing but accommodating there is also a palpable fear of what the influx of new residents will bring to their city. Doors that used to be left open are now being locked at night.

"It's hard to see how this isn't going to change things forever," said Richard Culpepper, a fifth grade teacher. "It used to be there would only be one person ahead of me in the queue - but now look at it," he said pointing to the line that stretched almost to the door of Starbucks. "Some people are worried about the change and the new people that are here, but they need help and we need to be consistent and keep on helping."

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