In the past few weeks, Mother Nature has tested the American soil with a number of hurricanes. Fortunately, men has shown resilience and surprisingly, so does the real estate market. In fact, the Attom Data Solutions revealed that the parts of the U.S. that has high risk of natural disasters are the places where property values are the highest and increasing most quickly. This is quite unexpected as most people would think otherwise. According to the study, very high-risk areas had a surge of 55% increase of home values. That’s 19,674,094 homes.
So what contributes to this value?
First, it is a well-known fact that most metropolitan cities are located inside risk-prone areas such as Miami, Houston and Los Angeles. These areas attract people for its robust economic activity as well as job opportunities and in return, it drives the prices up. Furthermore, since it is a competitive housing market, prices surges even more for views that are up high or overlooking the ocean.
However, this does not mean that high-risk area are unsafe. The city of Miami Beach has a resilience strategy that is focused to decrease the shocks and stresses of the city. It must be working well since The Continuum that is located right in front of the beach was unscathed. In conclusion, favorable economic condition and proactive city councils can influence a healthy real estate market even in high-risk area.