As we slowly get back to normal after Hurricane Ian, the big question in the real estate industry is whether there will be a sudden drop in prices and a panicked flood of fresh inventory from people who want to get out of the way of future storms.
After Hurricane Irma in September of 2017, real estate sales in Sarasota and Manatee counties were down 16.8 percent when compared to September 2016, largely due to the closures and evacuations the storm caused. New listings also decreased. According to statistics published by the Realtor Association of Sarasota and Manatee (RASM) at the time, the number of new single-family homes on the market decreased by 31.8 percent and new condo listings decreased by 20.9 percent.
June 1 officially marked the beginning of hurricane season for 2018. The forecast for this year, according to Colorado State University, will be 14 named storms, six hurricanes and two major hurricanes. After the devastating hurricane season last year, with over $282 billion in damages, homeowners are considering the consequences of owning real estate on the Atlantic Ocean.
While there is a positive long term impact as a result of hurricanes, reports show that home sales happen less frequent and at a lower cost immediately after a storm. Experts have reported that pending home sales drop by about 50% in Florida housing markets. However, as the study at Colorado State University found, this negative impact is short-lived. In Texas, after two months from the flooding left by Hurricane Harvey, 31% of residential neighborhoods saw an increase in median home prices.
The rental market also is impacted from hurricanes as well. According to a study focusing on the effects of pre-Katrina versus post-Katrina, New Orleans saw a sharp increase in rents after Hurricane Katrina. In fact, the report showed that this increase is common after hurricane storms, and was not just unique to Hurricane Katrina.
The facts paint a more complex picture. Though best known for acting and producing (as well as founding the Tribeca Film Festival), De Niro has also emerged as a highly successful real estate mogul, accumulating a rapidly expanding empire of elite properties. As co-owner of Nobu Hospitality, De Niro helped turn a celebrated Japanese eatery in Beverly Hills into a chain of dozens of restaurants around the world, as well as a growing roster of luxury condos and hotels.
I believe Hurricane Ian will have a similar effect on the Naples luxury real estate market. Certain buyers find it helpful to know what areas remained high and dry and which areas did not. They can use what happened in Hurricane Ian as a guide as to where to buy. Furthermore, the highrise condos and homes that were damaged in Irma underwent major renovations to strengthen them against the next storm. From this perspective, Irma was actually a blessing in disguise. Even the buildings and homes that were hit the hardest in Ian will bounce back as certain buyers want to be on the beach and are willing to take a chance to be there--especially when it is a 2nd home and not a primary residence.
Hi, my name is Sean Lorch and I grew up in the northwest suburbs of Chicago. I started in the business as a real estate appraiser and then became a real estate agent. I founded Northwest Suburban Real Estate in 2006. After realizing how much I disliked the cold weather, in 2015 I moved to Naples, FL where I help folks buy and sell real estate near the beach and in golf course communities. I take pride in my information-rich, pressure-light approach. Reach out to me anytime to talk shop.
Seeing is believing. Prompted by the devastation of Hurricane Andrew, Florida adopted some of the most stringent building codes in the country. Homes built before Hurricane Andrew in 1992 sustained extreme damage when Irma roared into the Keys, destroying most of them. Houses built after the stronger codes were enacted came through the Category 4 hurricane with minimal damage.
Although the magnitude and timing of sea level rise (SLR) are uncertain, forward-looking homebuyers may perceive a property susceptible to the effects of SLR as a risky asset and reduce the amount they would be willing to pay. While demand remains strong for primary and vacation homes in coastal markets, previous studies have shown that real estate valuations take into account existing flood risk, with valuations being lower for affected homes. This is especially the case in the wake of a hurricane.3 Additionally, large share of investors look for investment or rental properties in coastal areas. Their understanding of the risk of SLR and whether they incorporate it into their purchase decisions will also affect how the housing markets in coastal areas evolve over time.
Prices for homes exposed to SLR risk would likely vary based on buyers' awareness of SLR risk, their risk appetite, and how long they expect to own the home. For investors, they may be more sophisticated in terms of their awareness of the future SLR risk (for example, see Bernstein et al. 2019), we expected that they may pay less for SLR-exposed homes, particularly those located outside of FEMA-designated floodplains. However, we found no evidence that investors paid less for homes exposed to SLR. Furthermore, as suggested by previous studies and our Research Note on flood risk in the wake of the 2017 hurricanes, we found that home prices were discounted in SLR-exposed areas after extreme weather events, due to heightened flood risk perception. And these discounts were not limited to homes located in FEMA-designated floodplains.
We employ hedonic model which is commonly used to tease out the value of environmental amenity or disamenity using property transaction data (Equation 1 and 2). To compare the before and after hurricane Irma prices of observably equivalent homes we use a diff-in-diff framework (Equation 3). Our hedonic models take the following form:
Rodriguez got his real estate license in 2005, the year Hurricane Rita hit. The weeks and months after were his first experience with the cycle of investors, renovations, and resales in the wake of natural disasters. Then Humberto hit in 2007 and Ike in 2008.
If you are a real estate developer, you might be wondering how to choose hurricane proof windows so that you can shield your clients against the ever-threatening forces of nature. If you are enthusiastic about learning how to choose hurricane proof windows, here are some few factors that you can incorporate in your real estate development company.
More and more high-net-worth individuals and families from high-tax states like New York, New Jersey, California, and Illinois are moving to the Miami area to take advantage of Florida's status as a no-income tax state. And many of them want to be in prime waterfront locations, Dora Puig, a top real estate broker in the area, previously told Business Insider.
But Business Insider's Aria Bendix reported in February that the building, which includes a $68 million penthouse that could shatter real-estate records, is not safe from the area's rising sea levels.
Longer term, he thinks Grenada is well positioned because of where it sits in the Atlantic. "Logically if people are thinking of buying a Caribbean home it is safe to assume after a year like this that they would give more consideration to the southerly islands outside of the hurricane belt."
These articles are for informational purposes only and should not be relied upon as legal advice. Florida law is constantly changing. Therefore, we strongly recommend talking with a Florida real estate lawyer to learn your rights.
Daryl Fairweather is chief economist at Redfin, which has incorporated flood data from Risk Factor in its real estate listings for a few years. Last fall, the company published research showing that flood information did have some effect on behavior.
Now, Florida is proving to be even more attractive. In fact, Lawrence Yun, chief economist for The National Association of REALTORS® (NAR), predicts that more remote workers could flock to Florida, where the cost of living is low, and there's no state income tax. While Florida's beautiful weather, theme parks and beaches are attractive, hurricane season is already underway...and lasts through November. This year, the research team at Colorado State University predicts 20 named storms for an active season. If you're interested in buying a home in the Sunshine State, here are five things to know before a major storm is in the forecast:
A little research can go a long way when it comes to insurance needs. This is an annual expense that must be considered when it comes to buying a home in Florida. Most insurance policies for primary residences in Florida include hurricane coverage, with some exceptions. Buyers should know that deductibles are either calculated at a flat rate or by a percentage of the dwelling's appraised value. So, if the house's appraised value increases, it's important for buyers to beware that their hurricane deductible will, too.
One annual item to check off the list is tree trimming. Even during a typical Florida summer afternoon, a strong thunderstorm can send a large tree branch crashing into a home. Gutters must also be cleared before a hurricane in order to clear them of any blockages to allow rain to flow freely. With all of the wind, debris can easily collect in gutters during the storm.
Reese Stewart, RE/MAX Properties SW, is the 2020 president of the Orlando Regional REALTOR® Association (ORRA). ORRA represents 15,500 real estate professionals throughout Central Florida and is currently the 7th largest REALTOR® Association in the United States.
Outside of natural disasters, agents, brokers and other real estate professionals are well versed in how weather affects the real estate industry. They see it every fall once children return to school, the holidays arrive, and the industry experiences its regular seasonal slowdown.
This stopped the land from entering the real estate market and spiking in price. Steven Kirk, president of Rural Neighborhoods, a nonprofit housing developer that partnered with FKCLT on the Big Pine Key cottage project, said this is one of the most powerful ways land trusts can help disaster recovery. 781b155fdc