Not long after Hurricane Milton—the second-most intense Atlantic hurricane ever recorded—as well as Hurricane Helene left a trail of destruction in Florida, construction resumed in flood-prone areas affected by the storm’s wrath. This is an indication of Florida’s enduring popularity.
According to U.S. Census data, about 1 million people moved to Florida in 2023, increasing demand for housing and investing. However, with extreme weather on the rise and the Sunshine State in the crosshairs for some of the region’s most vociferous hurricanes (and the sky-high insurance costs that accompany them), investors, developers, and tenants have to ask themselves if Florida has lost its real estate shine.
According to the Wall Street Journal, Florida has built 77,000 new properties in high-risk flood areas since 2019, the most in the nation. However, despite the apparent unwavering optimism from developers and lenders, investors looking to buy and rent condos in the state for short- or mid-term tenants might have their decisions made for them by the soaring cost of insurance.
Soaring Insurance Costs Are a Big Issue
Because of the volume of new construction in Florida, insurance bills for hurricanes…