Driving through the debris left by Florida’s recent twin hurricanes, construction sites for new homes quickly come into view, notably La Linda Estates, being constructed in a high-risk flood zone on a barrier island near Milton’s landfall point.
Since 2019, Florida has led the U.S. with 77,000 new properties erected in high-risk flood zones. This development persists despite the increasing frequency of hurricanes and tornadoes.
South Florida’s luxury real estate market, while slightly slowed, continues to attract affluent buyers. Data from Douglas Elliman highlights that most high-end areas saw growth in home sales and prices in the third quarter compared to the previous year.
However, the impact of recent hurricanes has caused insurance premiums to soar, prompting some insurers to reduce coverage in the state. This has become a significant concern for residents near water or those affected by the storms, raising questions about future insurability.
To provide relief, Airbnb.org has helped over 1,500 displaced Floridians by offering free temporary shelter through its platform. This initiative connects homeowners who can offer accommodation with those in need.
The aftermath of Hurricanes Helene and Milton has led industry analysts to predict that more property owners will choose to rebuild rather than relocate. For those considering a move, the real estate outlook remains a major factor to ponder.
Condo sales in Fort Lauderdale have dropped significantly, with a 14 percent decrease in the third quarter. This decline is attributed to the ongoing real estate crisis in the state.
Meanwhile, Provident Funding Associates, a California-based mortgage lender, has withdrawn from the Florida condo market, ceasing new applications as of October 31. This retreat highlights the growing challenges within the state’s condo sector.
Incentives in real estate also continue, as seen in Sunrise, where an incentive package worth over $19 million could be awarded to Affiliated Development for a proposed apartment project.
Unique properties like a rare geodesic dome home in St. Augustine have entered the market. These structures, known for their energy efficiency and resilience to extreme weather, exemplify alternative approaches to building in storm-prone areas.
Benderson Development’s recent acquisitions in Florida, valued at about $140 million, signify ongoing investment in the state’s commercial real estate sector. These purchases expand their portfolio by 650,000 square feet in various locations.
The pattern of constructing in high-risk areas in Florida continues to raise concerns, especially in light of recent weather disasters and insurance uncertainties. Despite the challenges, both individual homeowners and real estate developers maintain their interest in Florida’s unique market.
Source: FloridaTrend
