What happens to the real estate market in an area affected by a major hurricane?

Southwest Florida, especially the beautiful barrier Islands of Sanibel, Captiva &, Fort Myers Beach will be future examples of the impact billions of dollars will have as major investments have begun and will continue to fuel rebuilding, remodeling and improving the area's resorts, vacation homes, shops, restaurants and overall infrastructure.

As a team we want you to know that if you're considering buying real estate in Southwest Florida, you may be wondering if now is the right time to do so. This question has become increasingly common in the aftermath of Hurricane Ian, which caused a lot of damage in the area and left many buyers feeling uncertain about the risk involved in purchasing property in and around Southwest Florida.

It's natural to feel hesitant about investing in properties that have been affected by a hurricane, but it's important to look at the bigger picture. History has shown that while real estate prices may temporarily decline in the immediate aftermath of a hurricane, they tend to rebound over time as the affected properties are repaired or rebuilt and the local economy recovers.

In fact, several studies have found that areas affected by hurricanes outperform comparable areas not affected by the storm after one full year. And we are approaching that one year mark in SW Florida.

Reference Articles and Studies:

• Forbes.com: For Florida Real Estate That Survived Hurricane Ian, A Price Bump Awaits
• New York Times: Hurricane Ian’s Financial Toll Threatens Florida’s Real Estate Market
• Veros Real Estate Solutions: Hurricanes and Their Surprising Impact on Home Prices
• Effective Agents: Hurricanes and Housing: How Storm Season Affects Real Estate

Public investment flowing into Southwest Florida:

• Lee County has been granted $1.1 billion from the Department of Housing and Urban Development, and with other sources of federal and state money
• Southwest Florida will have over $3 billion dollars of public investment into the area. This will fuel private investment in new hotels, restaurants, and businesses on Sanibel, Captiva, Fort Myers Beach, and the surrounding areas.

Private investments already in place include:

• Captiva's South Seas Resort's will invest $1 billion enhancements including luxury real estate offerings, a lazy river, and upscale shops.
• Sanibel's West Wind Inn and Seaside Inn will be completely rebuilt.
• Over 150 demolition permits have been issued on Sanibel alone and the new homes that result will be built to code - stronger and more resilient.
• Margaritaville is currently expanding its footprint in Fort Myers Beach, and will become a premiere resort destination. All of these SWFL projects will attract new businesses that will enhance and compliment the elevated level of tourism that results. This tremendous investment in Southwest Florida will elevate the entire area, making it more valuable to own property here.

While it's understandable to feel hesitant about buying real estate in an area affected by a hurricane, it's important to consider the bigger picture. History has shown that real estate prices tend to rebound over time, and with the investment in the area, we can expect future prices to be significantly higher. So, if you're considering buying property in SW Florida, take the time to review the data and look at the future of the barrier islands and surrounding area. With a clearer view of the future, you can make an informed decision about whether or not now is the right time to invest.