Home Prices In Disaster-Prone Areas
Disaster-Prone Areas Continue To Rise
The US property market is full of surprises. Common sense dictates that people should avoid disaster-prone regions. Hurricane Harvey, Hurricane Irma, and the California wildfires are some of the disasters we have witnessed recently.
The death and destruction are still vivid in our memories, but the property market seems to ignore all that. It begs the question, what exactly do Americans see in these low-lying counties?
Out of over 70 million homes, 48 percent are located in high to very high-risk areas. According to recent studies, the hottest property market segment lies in these disaster-prone regions.
For first time buyers it depends on the ability to read the situation correctly. While holistic and industry-wide researches give clues to the overall picture, sometimes they miss important cues.
The research showed that investors who bought in the high-risk market stood to rake in 55 percent gains on properties purchased in 2012. That is a healthy return on investment in just five years. It trumps any other asset class in America.
During the same time, the country has witnessed a cycle of billion-dollar disasters ranging between 8 to 15 billion dollars per year, consistently, over our study of the past 7 years. What exactly is making the West Coast and the Gulf Coast a popular destination for Americans and foreign investors? Is the trend misleading?