There were 116 million homes in the US during the 2000 census. Now there are a couple hundred thousand fewer homes in the world and a couple hundred thousand more houses that people have been chased out of. That should fuel the housing price outside of New Orleans in several ways. First, more people will be purchasing homes outside of New Orleans. Second, more people will be renting homes outside of New Orleans driving up the price of substitutes. Third, building materials will be in high demand for a while driving up the cost of building new. Weighing against the bubble is the depression a lot of people face about the future.

High energy prices is kind of mixed for housing prices–it raises prices on close-in houses, lowers it on suburb houses, decreases business confidence, but may increase nominal house prices due to inflation.

In New Orleans, we are likely to see some fire sale prices. It is a good time to start a vulture fund to snap up those houses. New Orleans is likely to have a renaissance the same way that San Francisco, Boston and Chicago did after their big disasters.