Contact:

Jeff Zipper, Vice President of Communications
407/438-1400, ext. 2314
JeffZ@far.org

Marla Martin, Communications Manager
407/438-1400, ext. 2326
MarlaM@far.org

Editor’s note: Part 2 in a series of media releases on Florida’s real estate market from the Florida Association of Realtors®.

Hurricane-Related Aid Expected To Boost Florida’s Housing Market

ORLANDO, Fla., November, 2004 -- As Floridians repair their hurricane-damaged homes, the state’s housing inventory will gradually be changing for the better, according to real estate experts. 

“Badly damaged older homes may be torn down and replaced with new construction, while homes with lesser damage may be getting new roofs, windows or other improvements,” says Frank E. Kowalski, 2005 president of the Florida Association of Realtors®. 

Insurance claim payments, as well as state and federal assistance, are already flowing into the state’s hardest-hit local markets, such as Charlotte County in Southwest Florida, Pensacola in the Panhandle and St. Lucie County on the central Atlantic coast. 

The state’s Department of Financial Services estimates overall damage caused in August and September by Hurricanes Charley, Frances, Ivan and Jeanne at $18 billion in insured losses. Statistics compiled by the American Red Cross show 315,104 Florida residences, including single-family homes, mobile homes and apartments/condominiums, were affected by the four hurricanes. 

Many Florida homeowners have already filed their insurance claims and received settlement checks so they can begin to rebuild. In addition, the state’s residents and businesses are benefiting from federal and state financial assistance programs. That aid surpassed $1.7 billion by mid-October, according to the Federal Emergency Management Agency (FEMA), which is also providing funds to rebuild public properties. 

Kowalski, a Miami Realtor who observed the devastating impact of Hurricane Andrew on southern Dade County in 1992, notes that it takes time for individual homeowners to come to terms with their losses and begin looking ahead. 

However, the long-term economic impact will ultimately be beneficial for the state’s housing supply.  “Hurricane Andrew in 1992 showed that a major storm leads to updating and rebuilding homes, making them more valuable pieces of property,” he says. “And Florida remains an extremely attractive market for out-of-state buyers.  When the first severe winter storm hits the Northeast or the Midwest, suddenly our state looks a lot brighter.” 

The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its more than 120,000 members in 70 boards/associations.

© 2004 FLORIDA ASSOCIATION OF REALTORS