Development has ‘picked up like crazy’ in ‘bargain’ Mississippi Coast beach town

New houses are rising. Restaurants are opening. Vacation rentals are busy.

It’s a portrait of surging growth in Waveland.

“It’s picked up like crazy,” said Lisa Johnson, a short-term rental owner in Waveland who gets new bookings almost every day. “It’s just going bonkers.”

The city of around 7,000 people is experiencing an economic development boon as more newcomers seek a laid-back, less crowded and often cheaper alternative to neighboring Bay St. Louis.

It is also a sign of growth across the Gulf Coast, where visitors from Louisiana and around the South are scrambling to buy some of the last affordable beach homes in the country.

Waveland, destroyed by Hurricane Katrina, has been steadily gaining recognition in recent years for its small-town charm and family-oriented culture. Its waterfront is lined with elegant homes and is quieter than Bay St. Louis, where bars and restaurants line the beach.

More development keeps coming. A $16 million Marriott hotel is scheduled to open at the end of the summer. Last fall, the popular restaurant Rickey’s on Coleman reopened to crowds who rejoiced at its return 20 years after Katrina. A new casual family restaurant is under construction down the street.

Demand for homes is so high that real estate agents say some beachfront properties sell within a day. Waveland Mayor Jay Trapani estimated 15 to 20 homes are being built in the city at all times.

“Waveland is the most economical place to buy land or build a house,” he said. “You can get more for your money.

“People are very welcoming. They just feel comfortable here.”

Hotel, commercial businesses drive growth

Leaders say opportunities for growth are increasing in Waveland, especially as Bay St. Louis gets more crowded.

“Everything kind of went nuts in Bay St. Louis, but they’re landlocked — there’s not very far they can go other than what they’ve got,” said Rhonda Aime-Gamble, who serves on Waveland’s Board of Aldermen. “In Waveland, we’re not surrounded like Bay St. Louis is.”

Waveland’s new four-story hotel on U.S. 90 will be a dual concept property that includes Marriott’s Fairfield and TownePlace Suites. Its announcement two years ago followed news of other U.S. 90 developments, including Express Oil Change and Harbor Freight, a hardware store chain.

County leaders are pushing for more development on the highway, a commercial corridor between Waveland and Bay St. Louis. Popular coffee chain 7 Brew opened there last year. New dining and fast-food franchises also want to open in the area, according to Blaine LaFontaine, executive director of the Hancock County Port and Harbor Commission, the area’s economic development authority.

“There’s demand there,” he said.

Despite the growth, Waveland’s beachfront will remain unique: The city prohibits commercial buildings on its beaches, meaning sandy shores will remain free of bars, restaurants and other waterfront businesses that dot the landscape of the Mississippi Coast.

The city’s population is rebounding and has nearly reached its pre-Katrina number. Lots that have sat empty since the storm are now filling with homes under construction. Neighbors hear hammers pounding and power tools running almost every day.

Waveland’s average home value is just over $200,000 — a few thousand dollars less than Bay St. Louis, according to the U.S. Census Bureau. Some families who owned second homes in Waveland for years before Katrina are finally buying in the city again. Many come from Baton Rouge, Mandeville and Covington.

“Now they’re trying to rebuild memories with their families,” said Holly Lemoine-Raymond, a real estate broker.

The city is still quiet. It has about 85 registered short-term rental properties, according to the mayor. But leaders created a new rule a few years ago that prohibits the number of short-term rental permits from exceeding 5% of the city’s homes.

Still, new visitors are arriving from around the country. Johnson, the short-term rental owner, said tourists from New Orleans, northern Mississippi and even Chicago have booked her home.

“It’s taken us a long time, but we’re doing well,” Aime-Gamble, the city alderman, said.

“This is the time to come to Waveland,” she added. “It’s a bargain right now.”