What Happens to a House in Florida After the Streets Flood?
May 7, 2025
The price of the house goes up. The values of homes in Florida have increased after every recent weather disaster.
They even continued going up in a neighborhood that was flooded for 90 straight days in South Florida. Many residents put homes up for sale, and despite the flooding becoming national news, the median sale price rose by $20,000. After six years, the median sales price for a home in that neighborhood is almost $200,000 higher.
In Miami, a hurricane flooded homes in 2017. The next year, the median sale price jumped $60,000.
If an investment is exposed to risks that will affect its long-term value, the investment is less attractive and it should go down in price. So why is this happening?
As one analyst noted, "People have short memories... Six months later, it's like it never happened."
Most experts don't expect a sudden crash in home prices from flooding or climate change damages. But estimates show Florida real estate may be overvalued by $50 billion.
This may be a Florida story, but these risks will affect us all in the coming years. The blind spots in how we value investments facing climate risks today could impact how our money performs tomorrow.