Southwest Florida may become an exclusively upscale real estate market

Southwest Florida may become an exclusively upscale real estate market

Experts and real estate agencies calculating the damage from Hurricane Ian agree that investors and buyers definitely haven’t lost interest in the Southwest Florida real estate market. On the contrary, many of them are now buying off properties in “as-is” condition. A broker from Englewood forecasts that the prices of residential properties will keep increasing over the next 12 – 18 months due to a higher demand.

Buyers from other states still want to purchase a home in Florida before prices surge even higher, as the supply in the market will shrink after the storm. Nor are they frightened by the growing expenses related to reinforcing houses to protect them from flooding and strong winds. For instance, in 2023, Ritz Carlton Residences will begin construction of residences worth upwards of $2.8 million in Estero Bay, south of Fort Myers Beach.

Buyers of homes on the Florida coast should factor in the insurance costs, which are likely to rise.

In 2020, provisions on the need of sealing roof decks were included in the state’s construction codes. The requirements of installing impact-resistant shutters or windows and reinforcing the joints between the walls, the roof, and the foundation have been in effect for a long time. This is a least-evil solution: according to a recent report by CoreLogic, almost 33 million houses on Florida’s Atlantic and Gulf coast are at risk of being damaged by hurricanes.

After the recent natural disaster, cozy cottages will likely be replaced by high-end houses, gated communities, and beachfront condominiums, while local residents who can no longer afford the more expensive insurance will move to other cities or states.

Subscribe to newsletter