It is my understanding that demand for housing has gone up substantially over the past couple of days. Good point, but something tells me these people won't be visting any real estate agents in Miami Beach, San Francisco, or Malibu when they get their claim checks.
I really don't know where they are going to go. I just don't. As someone pointed out on another thread, many of them have absolutely nothing to go back to, assuming they were even allowed to go back to New Orleans. No possessions. No job. Not even a neighborhood. If the government sends them to another city, they might just end up staying there.
But no, most won't be buying houses in overpriced markets. They will, however, soak up some of the rental market, raising rents, and fueling interest in investment properties.