For awhile. And some might sell, and pocket the profits. Your Hispanic comment is interesting, but it will not happen to any great degree. That would just be an "explosive" development. There will be massive set asides for the construction, and it will cost twice what it should. There will be much to complain about regarding NO for a very LONG time.
The union boys have been calling their pet Congressmen for a week.
Well, just think rationally about it. Much of New Orleans will be unlivable for many months, if not a year or more. The people who have been moved will gain resettlement assistance, and the quality will be relatively high because of public relations. For that matter, if we wanna be crude, public assistance is much superior in these other states than in New Orleans. People who want them will find jobs, and in either case they will settle down.
As New Orleans gets rebuilt, there will surely be economic incentives to pull people in. These will be skilled people by and large, not the sort that populate slums. The demographic profile of the city will change totally. The construction activity will by and large pull in the usual typology, and that will be heavily Latino. A lot of immigrants will be attracted to the opportunities, and they will be heavily Latino. Moreover, there is likely to be an influx of whites comparable to what always happens in gentrifying urban neighborhoods, since in a sense that's what's gonna happen: radical gentrification.
Explosive or not, that's just how it's likely to play itself out.