Natural Disasters in the Real Estate Market

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how real estate is affected by natural disastersIn light of Hurricane Ida, natural disasters make a huge mark on civilization in a detrimental way. Sadly, this enormous storm caused seemingly irreversible damage to cities from Louisiana and Mississippi up to New York and New Jersey. How can we learn and prepare from these terrible events to reduce loss or property and life in the future?

Climate specialists that have been studying these, and other, natural disasters have noticed the massive impact that climate change affects the intensity and frequency. This means that people need to be as prepared as possible whether you own a home or are renting. The preparations start when you are looking for a property to buy and if it’s in a high-risk area. This can include heavy rainfall areas, beach fronts or just on a river or lake causing possible flash floods. Currently, this waterfront real estate makes up some of the most expensive properties. However, the ongoing risks of storms could flip this and we could see prices go down. More so, we would see an increase of prices inland as people seek higher and dryer land. La Plata County doesn’t see as harsh of storms as on the coastlines which means our local real estate market could continue to grow as our population continues to increase.

Preparations can be made while building a new home or while rebuilding a community. Despite record high lumber costs, communities affected by this most recent storm will rebuild themselves. Adding a few feet of foundation elevation and using waterproof flooring can make a huge difference in flood situations. While expensive, having flood insurance is pertinent especially in high-risk zones. The rebuilding process can take time and this can also affect the value of affected homes negatively while homes that managed to escape major damage would see an increase in value due to a decrease in supply in the market and more demand or accommodations.

Through these devastating events, we can come together as a nation and support each other in impactful ways. Thankfully, Durango resides in a land locked, lower risk area. However, we feel for everyone affected by any natural disaster and we would love to answer any questions you may have about how these disasters play a role in real estate.