Reply to What did Ian do to the Florida Real Estate Market?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The biggest impact on real estate in the area is that many of the less affluent owners of those small, older houses will not be able to afford to rebuild to modern hurricane code standards. When you look at the aerial photographs of the damage, it is striking  to see the difference between the houses that were built post-Andrew vs. the "old Florida" houses that were completely destroyed.

I know someone who has a newer condo on Ft. Meyer's beach that had storm shutters and their unit is completely undamaged. The bottom floor of the building was flooded, but most of the modern buildings were built with that possibility in mind. I know someone who built a waterfront house in Mexico Beach that took a direct hit from Category 5 Hurricane Michael and the house survived, while all around the bare slabs of older houses.  Houses will be built there, but they're going to be homes or condos that are built to modern code and flood insurance standards and will be correspondingly more expensive. [/quote]

This.  Thank you for understanding the impact of building codes.  I have worked with FL on their codes and there is a drastic difference in homes that were built to the newer codes vs. not.  Unfortunately, it does come at a cost.  Many will try to rebuild without permits or with sub-par designs/materials.  
The other unfortunate part is that flood insurance will only cover a portion of the damage and will max out at 250k.  With construction costs what they are and adding in the increase that FL residents will see due to demand, it will be incredibly expensive to rebuild.  
You will end up seeing more modular and manufactured homes.  Manufactured homes, even newer ones, do not do well in flood and high wind environments.
It is a tough situation all around.  [/quote]

And - in regards to the real estate market, once rebuilt, I expect prices to actually increase to make up for the increased costs to rebuild.[/quote]

Most middle class won't be able to afford flood insurance.   This is not the last hurricane hence people who want to live there have to take that chance.  Rich people in Miami and West Palm Beach don't have to worry as if their 20 million mansion washes away they will go to their house in New York. 
Most of the hard hit people were crying as they will be homeless (their mobile home cost $30k back in the day and they worked to live paycheck to paycheck).   Hope FEMA helps who need it not give it to scammers like millions stolen due to COVID relief funds.  
Again like CA, all rich people can only live on the coast.  [/quote]

Yes, people with multi-million dollar homes can rebuild, but it's still a hassle. Who wants to worry about cleaning up after a hurricane. No, you are not doing the work, but you have to deal with it. Also, the fact that it will take years before everything is pretty again is also a problem. Will you buy a house where half of the street is there and the other is not? Also, do you want to take a chance that after rebuilding another hurricane hits. Your house might be fine, but what about shopping areas, etc.[/quote]

and restaurants and bars. [/quote]

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