In Baton Rouge, home prices soared 20 percent as displaced persons began buying houses at a feverd pitch, in cash, not caring what they pay as supply is too low for demand.
According to the CNN article, Baton Rouge residents have put their homes on the market to take advantage of the surge in demand, pricing their homes high above what they normally would have — if they were to sell at all — in a non-emergency environment.
Are the sellers taking advantage of those in a tough situation or just letting the rules of supply and demand play out? After all, the evacuees, some of whom don’t plan on ever returning to their former home, seem willing to pay the inflated prices. Is it fair in the grand scheme that sellers take advantage of their better position?
Published or updated September 12, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.