Real Estate In Disaster Areas
How Real Estate In Disaster Areas Continues To Thrive
You may have been thinking of purchasing beach side property in a beautiful Gulf of Mexico setting. Panama City Beach is one such location.
However, recently destruction in nearby towns by Hurricane Michael is making you reconsider. Those who already own a home in the area seeiking hurricane assistance and are asking questions regarding the value of their home as well. Real estate is a major investment, and natural disasters bring up many questions.
Both Hurricane Katrina in New Orleans and Hurricane Florence in North Carolina are showing results that are worth considering when it comes to buying Panama City Beach condos and other beautiful areas on the Gulf.
For example, the Lakeview area of New Orleans was totally destroyed during Katrina and was often on the news; today it is one of the hottest communities for properties in the United States.
It was reported by NBC News that the appreciation of home prices was highest in high-risk areas for natural disasters; they rose at a level that was twice as fast as those areas identified as low-risk.
After A Disaster Of Nature
It is expected that the overall effect of a hurricane is a positive one. What was seen with Hurricane Florence is that after the initial destruction, while many homes in Wilmington and the surroundings were damaged, money is beginning to flow in.
This money is being used for new appliances, roofing, flooring, fences and more. Investors of real estate are seeking to purchase properties that were damaged.
With the idea in mind of renovating destroyed homes and selling them for a profit, investors understand that property values will rise again and when the time is right, they can sell a home that was previously damaged.
Water As A Magnet
Hurricanes and flooding happen near bodies of water; proximity to water is what draws people to live in an area. Historically, ports have been important areas and magnets for trade, transportation and employment.
In areas such as the Florida Gulf Coast, the water draws visitors from throughout the globe for its beaches, water activities, beauty and more. In the case of Houston and Southern Florida, tech and engineering jobs have relocated to the areas, bringing high paying jobs. Higher paying employment means rising home prices as well.
Effect On Older Neighborhoods
Some older neighborhoods may have stagnated in terms of growth and value. After a hurricane, when a major portion of homes are rebuilt to be like new. The expectation is that this fact, in the near future, will make this neighborhood one that is highly sought. People who never considered the area before might now want to buy a home there.
Statistics For Disaster Zones
ATTOM Data Solutions found that those cities in the highest disaster-risk areas had the highest home prices for single family homes as well as the highest rental market as compared to prices in low-risk areas.
It is also possible that media attention draws people to consider a region; the psychology of pictures of devastation has both positive and negative effects.
When it comes time to buy a home or sell as home on the Gulf Coast, a local Realtor can help you.
They know the area and the factors to consider when purchasing and investing in a hurricane prone regions such as Panama City Beach.
The benefits of living in a beautiful waterfront area might just outweigh the risks, if statistics are any measure.