Wealthy Americans are flocking to a little-known Louisiana enclave where luxury home prices have soared as much as 94 percent over the past decade.

The Northshore of Lake Pontchartrain - home to the towns of Covington, Mandeville and Slidell - has quietly emerged as an unexpected luxury hotspot, attracting affluent buyers looking for sprawling homes, Southern charm and a slower pace of life without the eye-watering prices of better-known destinations.

While prices for the top 1 percent of homes nationwide have climbed 57 percent over the last ten years, they have jumped 94 percent in Covington and 80 percent in Mandeville, according to Realtor.com.

Realtor.com senior economist Anthony Smith said one of the catalysts for the Northshore's growth can be traced back to Hurricane Katrina.

'Households who wanted to stay near New Orleans moved north across the lake,' Smith told Daily Mail. 

'Over the years, St. Tammany Parish stopped being a suburb and became its own metro, though it keeps close ties to New Orleans.'

But the Northshore now draws buyers from well beyond Louisiana. The biggest sources of demand for the Slidell-Mandeville-Covington metro include New Orleans, Dallas and Chicago.

According to Smith, buyers arriving from Dallas and Chicago can often stretch their budgets further in Louisiana, where they can get more house for their money than in those larger, more expensive markets.

The area also offers the kind of historic Southern character that has made destinations such as Charleston and Savannah hugely popular with affluent buyers, but at a lower price.

'The area also has the Southern charm ingredients buyers look for: Walkable downtowns, historic cottages and old oak trees lining the streets,' Smith told us. 'Buyers here can capture the same character for less.'

Covington has emerged as the area's top luxury destination, with a median price of $1.13 million for the top 10 percent of homes, nearly $1.87 million for the top 5 percent and about $3.74 million for the top 1 percent.

The city also has the largest share of million-dollar-plus listings, with 11.2 percent, or 82 homes, currently listed above that threshold. Mandeville follows with 9.4 percent.

The Northshore's landscape is another major draw. 

Covington offers access to the Tchefuncte River, Bogue Falaya River and Lake Pontchartrain, making boating, fishing and waterfront living part of the appeal.

The area has also attracted doctors and other highly paid professionals as medical employers including St. Tammany Parish and Ochsner expand.

But the lower home prices come with a major caveat: Price home insurance.

Smith warned that insurance costs can vary considerably depending on a home's age and its proximity to a flood zone, an important consideration for buyers looking at waterfront properties or older homes.

The Northshore's luxury market also has deep roots. Covington has long served as a summer retreat for wealthy New Orleans families, leaving behind historic homes and established communities that now sit alongside new luxury development.

One example is a $3.2 million midcentury modern home on the Tchefuncte River. The three-bedroom property sits on 3.4 acres and has a dock capable of accommodating yachts up to 80 feet, a private boat lift and a separate garden house.

Another Covington property listed for $4.5 million is a Colonial built in the 1860s, complete with white columns, a wide veranda, tennis court, pool and two acres of oak-lined grounds overlooking the Bogue Falaya River.

The properties illustrate what makes the Northshore's luxury market unusual, as buyers can still find historic Southern estates, waterfront homes and large plots of land while remaining close to New Orleans. 

Alexis R. Foster of 10/12 Properties, who currently represents the $3.2 million property, told Realtor.com the rate of growth has been exponential in the area. 

'Both residential and commercial has grown so much. The parish can't keep up with the amount of people moving to the area,' Foster said.

For affluent buyers coming from pricier markets, that combination of space, character and relative value is proving increasingly difficult to resist.

And while the luxury market is growing rapidly, Smith said the boom is still concentrated among a relatively small slice of the Northshore.

'When we look at areas like Covington, the growth at the very top is high, but it's still a narrow segment,' Smith said. 

'The parish overall has room to grow, particularly in areas like Folsom and Bush where land is still available and new supply can be added.'

That means the Northshore's transformation may be far from over, with new development and an influx of residents potentially bringing the area's luxury market - and its broader housing market - even further into the spotlight.