Looks like good times are coming back to the Big Easy. New Orleans, devastated by Hurricane Katrina in 2005, was the fastest-growing large city in the nation between July 2006 and July 2007, according to a new report released by the U.S. Census Bureau. This follows the city having the largest rate of population loss since 2000.

Experts are crediting growth in the South to relatively strong local economies and housing prices that are among the most affordable in the United States. Although New Orleans is no boom town like Houston, experts say the city is seeing a resurgence of residents returning back to areas flooded by Katrina. New Orleans’s population rose by 13.8 percent to 239,124 during the one-year period to lead all cities with populations of 100,000 or more in rate of increase. But Houston, which has seen continued growth over the last fives years, remains the leader in the total numerical increase during the same period (38,932). New Orleans had the fifth largest numerical growth (28,926).

What’s in a number?
The Census figures are tallied using housing unit estimates, which are based on building permits, estimates of construction where no building permits are reported, mobile home shipments and estimates of housing-unit loss since Census 2000.

Because of a year’s delay on the figures, the population effects of current economic trends — like the real estate slowdown and high gas prices — aren’t yet known, said William Frey, a demographer at the Brookings Institution, in a statement.

Demographers have found significant evidence to show that many areas in Florida, such as Miami, Orlando and Tampa, have shown significant slowdowns in population growth. These areas have been hit hardest by the housing meltdown and foreclosure crisis. Six of the 25 fastest-losing cities were in Florida. Phoenix and several Texas cities have also shown a downturn.

Columbus, GA, had the largest percentage decrease from 2006 to 2007. Its population decline is attributable to a decline in the population living in military barracks. Columbus was followed by Baton Rouge, LA; Hollywood, FL; Jackson, MS; and Coral Springs, FL.

At the same time, the credit crunch, which is making it more difficult to buy homes in the suburbs, may be responsible for year-to-year population gains in such cities as Chicago, Boston and Los Angeles, Frey said.

U.S. Census Bureau estimates show New Orleans growth was followed by Victorville, CA, whose population climbed 9.5 percent to 107,221. Victorville, in Southern California’s San Bernardino County, saw its population pass the 100,000 mark for the first time in 2007. New to the list of the 25 most populous cities in 2007 is Nashville-Davidson, TN, ranking 25th with a population of 590,807. In addition, Fort Worth moved up to 17th place, Charlotte to 19th and Milwaukee to 22nd. Washington fell out of the top 25.

Industry experts often advise buyers looking to invest in a second home to search in areas that offer more job diversity. You can go to the U.S. Bureau of Labor Statistics to check out a city’s employment rate during your home search. Population and job growth are two key indicators that help drive the real estate market and home appreciation.

10 cities with the largest numerical increases from July 2006 to July 2007:

Houston: 38,932
Phoenix: 34,941
San Antonio: 32,680
Fort Worth: 29,453
New Orleans: 28,926
New York: 23,960
Atlanta: 20,623
Austin, TX: 17,648
Charlotte, NC: 17,471
Raleigh, NC: 15,148

10 largest U.S. cities as of July 2007:
New York: 8,274,527
Los Angeles: 3,843,340
Chicago: 2,836,658
Houston: 2,208,180
Phoenix: 1,552,259
Philadelphia: 1,449,634
San Antonio: 1,328,984
San Diego: 1,266,731
Dallas: 1,240,499
San Jose, CA: 939,899

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