Waterfront Land Rush in Mississippi

There's a new land rush going on, and it's not a fancy new development or a pristine area perfect for vacation homes. It's the devastated coastal area of Mississippi:

Rubble piles bear "For Sale" signs. Homes without roofs are being sold as-is. Placards announcing "We Buy Houses, Cash!," are posted on corners throughout middle-class neighborhoods.

The Mississippi coast, wracked by Hurricane Katrina, is caught up in a real estate rush, as speculators and those looking to replace their own wrecked homes pinpoint broken and battered waterfront neighborhoods. In the weeks since the hurricane, prices of many homes - even damaged properties - have jumped 10 to 20 percent.

But what Katrina spared, the real estate rush now imperils. The arrival of speculators threatens what's left of bungalow neighborhoods that are among the Gulf's oldest communities, close-knit places of modest means where casino workers, fishermen and their families could still afford to live near the water.

Many, underinsured and with few alternatives, see no choice but to sell.

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It doesn't take much for a property owner in those neighborhoods to attract prospective buyers. A call to a real estate agent fetches bidders the same day. A for-sale sign in the yard is almost as good. In some neighborhoods, owners can wait for unsolicited offers from people who show up at their doorstep.

Many people in this area were underinsured, or not insured at all against flood, and have little left except rubble or moldy damaged structures. About the only hope these people have of making any sort of recovery is to sell their property for whatever they can get for it.

Developers with big bucks know that this area will be rebuilt better than ever, and that the casino and entertainment industry along the coast will probably come back with a roar, meaning that one day this land that they're buying will be very valuable. By buying up numerous parcels, they may also be able to consolidate some properties and build larger homes, luxury condos/townhomes, or leisure-related businesses.

Meanwhile there is a lot of beachfront land that will become available, and for those people with the money and desire to own such property, opportunities will be aplenty.

For some this will be a way to get some money out of their home investment, while others may have the opportunity to sell at a much higher price than they could have gotten before the storm. It's capitalism at work.