Covington Expands Public Parking to Support Growing St. John District

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Covington’s historic St. John District is known for its lively mix of restaurants, shops, and offices, but the area’s growing popularity has led to a pressing issue: a shortage of public parking. To address this, the Covington City Council took decisive action on July 16 by approving a $1.5 million purchase of property at 627 East Boston Street, which will be transformed into a much-needed parking lot. The site, once home to a gas station and more recently a vehicle detailing shop, includes three contiguous lots at the corner of Boston and Florida streets.

This strategic land acquisition was met with widespread approval from local business owners, Mayor Mark Johnson, and the city council. The addition of new parking spaces is seen as a crucial step in accommodating the increasing number of visitors to the district.

In addition to the property purchase, the council also approved a resolution to increase the city’s lease agreements for several existing parking lots owned by private individuals.

Details of the Lease Increases

The lease adjustments involve three different properties:

  • East Gibson Street Lot: Owned by Marsolan Feed and Seed Store Inc., the annual lease increased from $250 to $1,610.
  • East Rutland and North Florida Streets Lots: Both owned by Gregory M. Verges, the combined lease for these two lots rose from $1,800 to $2,400 annually.
  • Vermont and East Gibson Streets Lot: Owned by Vermont/Mandeville LLC, this lot saw the most significant increase, with its annual lease jumping from $2,400 to $24,000.

District E Interim Council member Sam Giberga expressed concern over the substantial hike for the Vermont/Mandeville lot. Mayor Johnson explained that the increased lease rates were negotiated to cover the property taxes each owner pays, highlighting the generosity of the owners in providing these parking spaces to the city.

Negotiating the Vermont/Mandeville Lease

Johnson noted that the original lease proposal for the Vermont/Mandeville lot was $60,000 annually. However, through negotiations, the amount was reduced first to $30,000 and then to $24,000. The lot, which accommodates about 50 public parking spaces, is crucial for local businesses, and Johnson emphasized that some businesses have already agreed to contribute toward the lease cost.

Two businesses have committed to covering approximately 50% of the Vermont/Mandeville lease, and the city is reaching out to others to enter sublease agreements to further offset the cost. Giberga expressed optimism that businesses would step up to cover at least 80% of the lease, given the critical need for parking in the area.

The Future of St. John District Parking

District A Council member Peter Lewis inquired about the contingency plan if additional subleases from nearby businesses could not be secured. Johnson responded that if necessary, the city could close the lot, though he and other officials are confident that won’t be needed, given the thriving nature of the St. John District.

As Covington continues to grow, the city’s proactive steps to expand public parking demonstrate a commitment to supporting local commerce and ensuring the St. John District remains a vibrant destination for both residents and visitors.

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Signs Point to a More Favorable Market Ahead

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After years of skyrocketing home prices and high mortgage rates, many Americans have felt discouraged about their chances of buying a home. However, recent trends suggest that the housing market may be shifting in favor of buyers, offering a glimmer of hope for those looking to purchase a home.

Market Conditions Show Signs of Easing

“June, in particular, has started to show the housing market slowing down in favor of buyers,” notes Skylar Olsen, Zillow’s chief economist. This shift comes after a period where remote workers and families, enticed by historically low interest rates, flocked to buy homes during the pandemic. The Federal Reserve’s aggressive rate hikes in March 2022, aimed at curbing inflation, were expected to cool housing demand. However, rather than seeing a drop in demand, many homeowners opted to hold onto their low-interest mortgages, leading to a continued shortage of homes on the market and pushing prices even higher.

For the past two years, prospective homebuyers have faced the daunting combination of high prices and elevated mortgage rates. Yet, there are now indicators that the housing market is starting to tilt back toward buyers. Zillow’s recent report revealed that nearly one in four home sellers reduced their prices in June—the highest rate for that month since 2018. Additionally, the average rate for a 30-year fixed mortgage recently fell to its lowest point since mid-March.

A Gradual Shift Toward a Buyer’s Market

With new home construction on the rise and expectations that the Federal Reserve may begin cutting interest rates in the near future, the prospect of buying a home could become more affordable. Lawrence Yun, chief economist at the National Association of Realtors (NAR), observed that the market is gradually transitioning from a seller’s market to a more neutral or even buyer-friendly one. “Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis,” Yun stated after the release of the latest existing home sales data, which showed a 5.4% decline in June.

Signs of Improvement for Homebuyers

Rick Sharga, founder of real estate consulting firm CJ Patrick Company, believes the worst may be behind us. “We’re sitting today at probably, if not the worst affordability ever, really close to the worst affordability ever—so we almost have nowhere to go but up,” Sharga said. He highlights that home price appreciation is slowing, with Zillow reporting that annual appreciation in June was just 3.2%, the slowest rate since 2011. Additionally, housing inventory is on the rise, with 1.32 million active listings in June, a 23.4% increase from the previous year.

More Time and Options for Buyers

Buyers are no longer feeling the same urgency to make immediate decisions. In June, homes stayed on the market for an average of 15 days—still quicker than pre-pandemic times but four days longer than the previous year. Olsen notes that this offers buyers “a bit more breathing room,” signaling a market that’s beginning to balance out.

Another positive sign is the growing expectation among Wall Street investors that the Federal Reserve will start cutting interest rates soon. This could further ease mortgage costs, potentially encouraging more homeowners to list their properties, thereby increasing the supply of available homes.

Construction and Inventory on the Rise

Despite higher borrowing costs, home construction has been thriving. U.S. Census data shows that new home construction rose by 3% in June, with the number of newly completed homes jumping by over 10% in just one month and 15.5% year-over-year.

The Reality of the Current Market

However, challenges remain for many prospective homebuyers. Despite the positive trends, home affordability is still a significant issue. The median price of a previously owned home reached $426,900 in June, marking the second consecutive month of record highs based on NAR data dating back to 1999.

Real estate trends also vary by region. For instance, New Orleans has already shifted into a buyer’s market, according to Zillow data. But as Realtor Leslie Heindel from New Orleans points out, lower home prices in the city can come with hidden costs, such as rising homeowners’ insurance rates. “You can definitely get something cheaper here now, but there’s a reason for it,” Heindel explains.

Looking Ahead

While the path to homeownership is still challenging for many, the market’s gradual shift towards more favorable conditions for buyers offers some hope. As home prices stabilize, inventory increases, and mortgage rates potentially decrease, the opportunities for prospective buyers may improve in the coming months.

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