Building ProductsFloridaSoutheast

Hurricanes’ Historical Impact on Construction

October 6, 2016

As Hurricane Matthew heads toward the East Coast of the United States, our thoughts are with our team members, family members, and millions of others along the Southeast coast.

Hurricanes obviously have a big impact on the construction business. Here are a few facts and a chart clients will receive in our next Building Products Industry Analysis and Forecast report.

  • Hurricane Andrew caused about $24 billion of insured catastrophic losses in 1992 (in 2016 dollars).
 
  • If a Hurricane Andrew-sized event were to occur, it would be larger than the entire annual US insured losses seen for the past three years.
 
  • Note that TOTAL losses from the storm are even higher because non-insured losses are not counted in our data. Insured losses typically result in spending on building products.
 
  • Based on 30 years of data, we estimate that about $10–$11 billion of disaster-driven residential remodeling spending per year is typical. Average residential remodeling from disasters totaled $7.1 billion for the last three years (2013–15).
 
  • More than 200,000 homes have been built along Florida’s eastern coast in the last decade. CNBC did a nice summary of the housing value there.

New home construction has obviously already slowed, as crews are home preparing. Wet conditions will slow construction even more, and building material costs will likely spike. This video from The Weather Channel shows what the shelves were already like at home improvement centers before the storm hit.

Be safe, everyone!

Building Market Intelligence™

Every week, we deliver analysis to over 40,000 subscribers with our Building Market Intelligence™ newsletter. Subscribe to our weekly BMI newsletters to stay current on pressing topics in the housing industry.

About The Author

Contact Us

If you have any questions about our services or if you would like to speak to one of our experts about we can help your business, please contact Client Relations at clientservices@jbrec.com.

Products and Services Mentioned

Building Products Package

Our research subscription provides unparalleled expertise and a unique specialized perspective on new construction and remodeling, backed with exceptional data, for business planning and investor relation support.

Building Products Consulting

Our building products team is comprised of industry experts with diverse sector and functional experience. We partner across organizations to provide custom consulting reports to aid organic and inorganic investment decisions, strategic planning, and marketing.

Real Estate Consulting

Our experienced team of consultants helps clients make sound housing investment decisions. We thrive on their success and work with many clients over multiple years and numerous projects. ​

Latest Insights

What’s happening with hiring? Listen to these 4 recruiting firms.
Earth, Wind, and Fire: NileBuilt Homes Defy the Elements
Design Disruption: Architects’ Floor Plan Forecasts