Quote:
Originally Posted by Pairadocs
I recently read that a significant uptick in FL foreclosures resulted from Ian, and in ways I had never suspected ! Stories I won't try to regurgitate here, but linked to how FEMA works (and doesn't work !) for so many people, people who thought they did everything right, paid high premiums to be fully insured, and so on. But, I had no idea that if the damage is even 1% OVER the 50% allowed (by FEMA as I understand it), then the structure must be repaired and rebuilt to much stiffer and much more expensive standards. Apparently many seniors who have been retired in the Sarasota and surrounding area, experienced over 50% damage, but even with full "replacement" value, the insurance checks fell far far short of the cost of building to the increased standards. Kind of between a "rock and a hard place", especially for people now on a fixed income. I DO understand that allowing these people to rebuild using only the "replacement cost" as per the insurance policy, minus FEMA requirements, does expose ALL of us to even higher rates should they have this happen again and did not have to rebuild to the new standards.... but, I also see "the other side of the coin", not knowing how we could rebuild if our "replacement cost" insurance did not cover the government's newest building requirements ! Many foreclosures on properties with significantly damaged homes. Have good friends who were fortunate, their lanai, pool, and one wing of home were under considered 30% so they were able to rebuild with the money their insurance provided. Their next door neighbors in the same development, experiences 60% damage, just 40 feet away !
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From Motley fool link, Typical single-family home value in the first quarter of 2023: $383,063
Median household income as a percentage of home value: 16%
The typical home in Florida is priced 15% higher than the typical U.S. home and the median household income in the state is 10% lower than the median U.S. income, resulting in a low income-to-home-value ratio and generating affordability concerns.( I would think the higher percentage of retired people here would modify the impact)
All the retirees arriving drive up home prices but at the same time bring money into the economie being spenders not taking jobs, significant dip in interest rates fueled a buying spike, encouraging some to bite off more than they could chew, phycology of boom and bust