How natural disasters effect the real estate market and property prices

A hurricane or a medical pandemic are two examples of how natural disasters can significantly affect the real estate market. Everyone is impacted, regardless of whether they are building their own home, buying their first home, or have lived in their current residence for a long. Natural catastrophes frequently have an impact on supply chains, which therefore has an impact on new home building.

Prices will often go up and building will halt until supply networks are back to normal. Home values will often increase even in places unaffected by a natural disaster. Natural catastrophes may also lead to a rise in crime rates, further affecting the housing market. Let’s start by examining how supply networks are impacted by events like hurricanes and floods.


The United States and building materials are the subjects of the following intriguing facts.

  • China is the source of 30% of the construction materials imported.
  • 20% more is imported from Mexico and Canada.
  • COVID is predicted to result in a 20% decrease in supply volume.

Most building supplies, including plumbing, electrical and lift parts, are imported from China. The United States’ ability to obtain the resources it requires would be severely impacted by anything like a flood or an earthquake. Such breakdowns of supply chains frequently result in an increase in home supply, such as wood.


Some fascinating things occur with home prices in places that are most severely affected by a hurricane or fire. First, a disaster may cause a reduction in housing values of between 40 and 50 percent. However, housing costs might considerably rise in nearby cities. After the fire had devastated the area, this effect was seen in Paradise, California.

The increased value of property near catastrophe zones turns first-time homebuyers. This, along with the effect on supply chains and the cost of building supplies, accounts for the sharp increase in home prices. It is unclear whether the rise in home prices will change as the cost of building materials decreases.


Here’s some good news: crime rates were at their lowest level in 20 years. For places impacted by natural disasters, this is not true. Crime rates in the Chico metro region were 21% higher than they had been the year before during the 2018 California Campfire. Other locations, such as Panama City, Florida following a hurricane, exhibit the same pattern.

When crime rates rise in this fashion, it frequently hurts the economy and other areas. This is bad because an area with a lot of foreclosures can suffer a drop in property values. If after purchasing a home, home values in the neighborhood stabilize, this can be advantageous for the correct buyer.


People occasionally believe that construction employees don’t give their best effort when constructing homes. In the current domestic market, especially following a natural disaster, this is simply not the case.

Supply chains are severely disrupted by natural disasters like hurricanes and COVID-19 fires. Building materials are imported into the United States, thus tragedies that don’t even occur here have an effect.

For those looking to buy a new home, rising housing costs and crime rates make things more difficult. Therefore, having assistance is crucial if you’re buying a new home or searching for one. Building a home has become simple for new buyers thanks to Hyde Homes. They concentrate on making your house “move-in ready” for you and your family.