Hurricane Idalia recently proved to be a big reminder of how critical location is when it comes to investing in real estate. It may also be a significant trigger for many other property owners, renters, and investors.
Hurricane Idalia was the first major storm of the annual season to hit Florida, revving up to Category 4 strength before making landfall. Forecasters predict it may even circle around and hit the Sunshine State twice.
Fleeing The Disasters
This latest hurricane created a state of emergency in dozens of counties, leading to large scale calls for evacuations.
This comes hot on the heels of Hurricane Ian that cost an estimated $112B in damages the previous years.
It’s just a part of Florida life. If you own property there, it’s not a matter of if you will be impacted. It is just when, and how hard, and how often.
Eventually many grow tired of replacing roofs and rebuilding again. And this year, may cause even more than usual to pack up and leave; in particular, the hundreds of thousands of New Yorkers that migrated south in the wake of COVID lockdowns. It’s not something they are used to.
In addition to the heat, there is a less than welcoming environment for the mass influx of northerners. And with prices quickly being driven up to Northeast comparisons, we may have many boomerang movers.
Only now, for a variety of reasons, we can expect far more of them to land in NJ, rather than NY.
Others, whether moving north or south, may also choose places like Georgia, where it is far more affordable, and the weather is more moderate at both ends of the scale. Georgia, especially for renters, is a great location for those searching for jobs within commuting distances of major hubs like Atlanta or Macon.
What Do You Want In Your Investment Portfolio?
Along with the movers are many insurance companies, lenders, and other capital investors who are growing tired of the same repeating cycle, such as with the wildfires in parts of California. Some businesses haven’t yet mastered staying operational during times like these either and have had enough.
Some places are great to go on vacation, though not necessarily optimal for owning a home, vacation rentals, or assets you rely on for income.
So, we may well see more people and capital flows to GA and NJ markets. This especially among those desiring more in terms of long term value, consistent cash flow, and predictable returns.
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