This past September, we witnessed Hurricane Ian whipping the Southwest Florida area with devastating 155-mile-per-hour winds. As we slowly start to return to normal after such an impactful storm, many in real estate have a big question: how could this potentially impact the industry?
Although areas from Sarasota and Bradenton down to Fort Myers and Naples have primarily experienced tight supplies of affordable housing, buyer demand in these locales continues to grow in relatively unharmed locations after the storm.
Those holding (and investing in) real estate typically have a short memory after big storms like Irma or Ian, quickly forgetting the downed trees, leaking roofs, and seemingly unending piles of debris. Ironically enough, these intense storms often boost real estate markets that can stand to benefit buyers, sellers, and commercial real estate in Fort Myers, Florida.
Hurricanes Benefit the Real Estate Industry
Hurricanes surprisingly have the opposite effect on real estate from what you might expect. Real estate prices typically go up in areas damaged by these severe storms.
Hurricanes and the state of Florida go hand in hand. Anyone who has lived in The Sunshine State for long enough has probably experienced at least one. Despite the seemingly endless yearly threat from hurricanes, Florida continues to enjoy a booming population, as well as a thriving economy and housing market. The state is truly one of a kind. Residents, prospective residents, and Fort Myers real estate agents know it.
Southwest Florida is a destination area. Florida humbly began as an agricultural state holding cattle and growing citrus and tomatoes. Today, Florida is the 3rd most populated state in the United States.
Nonetheless, possibly the most shocking impact of hurricanes on Florida’s housing market is that they really impose no real long-term effect on the industry. Fort Myers real estate agents and other area professionals may initially report a decline. Still, buyers and sellers ultimately use the time right after a storm to make repairs and file their claims. Eventually, life returns to normal.
A short-term negative impact makes sense. Homeowners need time to recover from a storm. If you’ve previously experienced one of these storms, you understand the significant aftermath homeowners must clean up.
Some market downturn in the short time after Ian includes repairs on properties, debris cleanup, food and gas shortages, and other tasks keeping owners busy. Although sales and listings will likely decrease shortly after Ian, median prices will notably grow. By next year, Southwest Florida real estate markets will be as healthy as ever, demonstrating increases in sales across all home types.
As a real estate investor (or potential new buyer), you can confidently invest in properties in Southwest Florida. From Downtown Fort Myers real estate and commercial real estate in Fort Myers, Florida, to areas like Sarasota, Bradenton, and throughout Southwest Florida, housing market prices should continue to rise despite natural disasters like Hurricane Ian.
Benefits For Real Estate Sellers
When hurricanes damage or destroy homes, real estate inventory shrinks. As a result, we observe an increased seller’s market.
After a storm, construction teams often remain preoccupied with making repairs, and new construction is difficult to begin. Hurricanes will also create an environment with low inventory, resulting in increased demand, lower supply, and increased prices.
A typical hurricane strike can raise house prices in an impacted area for several years. If you’re thinking about selling your real estate investment after a hurricane, this can often represent the best time.
Benefits for Real Estate Buyers
Hurricane-damaged areas cause markets to boom. Some owners may sell off their real estate (in some cases, their primary residences) because they don’t want to maintain a property or live in an area commonly affected by hurricanes. A hurricane strike may finally be “too close to home” for some residents and investors, driving them to sell their properties. Consequently, many Florida residents will remind others that storms occur few and far between. The benefits of living in a tropical paradise often outweigh the relative infrequency of serious storm issues.
For buyers and their Fort Myers real estate agents, the formula for success is often sooner rather than later. Over time, inventory becomes more scarce in the months following Hurricane Ian, increasing prices. If you’re interested in Southwest Florida real estate, the time to strike is now!
Damaged homes enable investors to purchase properties at lower prices before restoring and reselling them. For real estate investors with capital to spend (or construction and contracting skills), damages from Hurricane Ian offer the perfect conditions for purchase and resale in a highly competitive market and desirable location.
Hire a Qualified Real Estate Professional
Hurricane Ian won’t likely stop those who intended on moving to Southwest Florida anyway. The area has experienced hurricanes and other natural disasters before. Hurricane season occurs in the fall, and most individuals will want to continue flocking to the popular state as the weather turns cold. When Floridians and Florida real estate investors feel “panicked” about selling off their investments, people come in right behind them with investment capital and the motivation to buy.
Are you interested in Downtown Fort Myers real estate or other Southwest Florida opportunities? You’ll need a professional real estate agent with experience and familiarity in the area.
Alec Salameh is an expert real estate agent with Coldwell Banker Realty. He strives to help individuals looking to find their dream homes and investments in the Southwest Florida area. Depending on the substantial resources that Coldwell Banker Realty offers and his experience and knowledge operating in Southwest Florida, Mr. Salameh delivers modern, trustworthy, and professionalism to every client.
Listings in Fort Myers, Cape Coral, Naples, and the surrounding communities are still selling fast. If you are interested in entering the Florida market, you can look at Alec’s listings or contact Alec Salameh today for additional information.