South Tampa Real Estate Report

South Tampa Real Estate Market Report | 1/19/25-1/25/25

I read an interesting article in the Wall Street Journal ( sorry, it's behind a paywall) the other day in which the author presented the idea of a "disaster discount" for housing located in areas prone to natural disasters (fire, floods or hurricanes). While the data doesn't emphatically show that such a discount exists (there was less than .05% difference in price appreciation between homes in areas prone to wildfires vs. those in less risky areas), the concept of a "disaster discount" is discussion worthy. As California recovers from the recent wildfires and Florida from recent hurricanes, insurance rates are sure to rise, particularly for homes not built to current code or with adequate protection from natural forces. As those rates rise, it may very well affect the affordability of homes in disaster prone areas, thus putting downward pressure on home pricing. Just food for thought. Have a great week!

Michael Palermo

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