The impact of hurricanes on property values

On Behalf of | Oct 19, 2018 | residential real estate

Every year coastal communities across the nation brace for the possible damage that comes with hurricanes. Floridians have had to weather many serious storms in the last decade, and just recently Hurricane Michael wreaked havoc on the state as it boomeranged through the Gulf of Mexico and slammed into the panhandle. With all of the destruction that hurricanes bring with them readers may be left wondering just what happens to real estate markets when the big ones hit.

In the case of Hurricane Florence, a massive storm that hit the Atlantic Coast earlier this year, some experts think that individuals will flee flood-prone areas and leave many homes for sale in such communities. This may cause home prices to drop as individuals elect not to buy in storm-ravaged areas and more and more houses on the market drop asking prices.

However, others have a different opinion on this relevant topic. They believe that hurricane-affected areas will survive if individuals are willing to assume some risk in exchange for getting homes at lower prices. As people return to flooded and hurricane-affected areas, so too will their wealth and investment which can drive the return of competitive home prices.

There is no question that hurricanes are a major threat to Floridians and the homes in which they live. As the ride out the end of the 2018 hurricane season, readers may see changes in housing prices across the state. Whether decreases in home prices become a norm will be left to be seen as the weather stabilizes and individuals make decisions about where they feel safe buying homes.