How will the current fire situation affect real estate in Northern California? All the people with homes lost will need to go somewhere, even if they return after homes are rebuilt. It could take years.
What has happened historically when this type of situation occurs? Will insurance companies rebuild quickly or sell off the land to new builders?
I can't see how it won't be crazy expensive and slow. Just from a labor/material standpoint Bay Area prices are already high because of all the new construction going on literally all over.
I think the biggest obstetrical that the displaced renters /homeowners will deal with will finding rentals. so terribly tragic.
New homes will be built in the fire-stricken areas of NorCal & they'll reflect what the market can bear in terms of pricing. A portion of new properties that will be built will be affordable housing so that should help ease some housing issues in overly inflated NorCal.
Did some quick googling and found some interesting links.
- Exclusive properties in wooded areas with great views commanding a premium before the fire will get hit with a significant dip in the short term due to change in homebuyers priorities.
- Reconstruction takes a long time. Increase in demand for 2 bedroom rentals? Spillover to increase in construction prices due to demand?
- Napa tourism gonna be negatively affected. Could affect hotels and vacation rentals in nearby cities?
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing