Florida Hurricanes Dejavu Helene & Milton

Florida Hurricanes Dejavu Helene & Milton

Jason WrayPro Member
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes

As Hurricane Milton lingers about ten miles off the coast of Pinellas County, it feels like déjà vu. We just got hit hard by Hurricane Helene, and now Milton is charging in. This morning, before Milton makes landfall, I drove down the beaches, where boats still sit stranded in roads and parking lots from Helene. Rows of debris and personal belongings line the streets, and upon closer inspection, some of it resembles a yard sale.

It’s heartbreaking to see people throwing away brand-new TVs, washers, dryers, paintings, family photos, and boxes of clothes. There are bikes, kids' toys, and even cars flipped over in driveways. In my thirty years in Florida, I’ve never witnessed such devastation, which makes me wonder if this is a new weather trend foreshadowing the state’s future, or just a once-in-a-while event.

Regardless, there are already websites and news articles discussing the so-called "Great Florida Migration." Many who moved to Florida during or after COVID are now relocating to other southern states. As a homeowner, I can’t help but feel a bit hopeful that home prices may decline, making it easier for us to purchase additional properties. However, as an investor, I’m concerned about falling values and losing equity. I believe there’s a middle ground to be found, and I remain hopeful for the next three to five years.

Has anyone heard from friends, family, or fellow investors expressing concerns that Florida is becoming a risky place, causing them to shy away from buying?

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  • Lender · CA · Member since 2018 · 637 posts · 393 votes
    1y

    Florida is definitely getting riskier and it is mostly due to the increased insurance costs (from weather and natural disasters as well as fraud).  My concern with FL real estate is that if something doesn't change soon, most property will be uninsurable except through excess lines and there is very limited accountability/oversight as to whether or not these over seas insurance agencies even have the funds for payouts.  People could be paying into these wildly expensive policies and then never get any of the necessary funds once a disaster does hit.  This will make it harder to afford, harder to get lending, and ultimately limit the buyer pool which puts negative pressure on prices.  

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