Mickey Neuberger Chief Marketing Officer | realtors.com
Florida's Gulf Coast recently experienced significant damage from two hurricanes, Helene and Milton. Hurricane Milton made landfall as a Category 3 storm on Siesta Key, impacting Sarasota's barrier islands, which are popular among seasonal residents. The region faced up to seven feet of storm surge from Helene, followed by more flooding and high winds from Milton.
These hurricanes marked the first major impact on Sarasota in over half a century, dispelling local myths about the area's protection from tropical storms. Hurricane Milton resulted in 33 fatalities in Florida and caused an estimated $34 billion in damages according to CoreLogic.
Despite the destruction, historical trends suggest that home prices may rise in affected areas like Sarasota’s keys. A study published in the Journal of Environmental Economics indicates that home prices typically increase for three years following a hurricane, with an average premium of 5%, peaking at 10% in the second year.
David Zarghami of Zarghami Group noted that newer homes built to withstand hurricanes survived the storms, while older homes are likely to be demolished and replaced. He anticipates increased construction activity as many properties will be rebuilt or renovated.
Local real estate data showed a quick rebound in new listings on the mainland after Milton hit, though activity remains low on the keys due to ongoing recovery efforts. Some homeowners may opt not to rebuild, leading to "as-is" property sales.
James Gallagher of GreenLite emphasized that homeowners might need to upgrade their properties with features like impact-resistant windows and reinforced roofing to comply with stricter building codes aimed at better protecting against future storms.
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