The US is prone to certain regular calamities on a regular basis. These include calamities such as hurricanes, storms, floods and even brush fires. While these do not occur in all areas, they do affect certain regions such as the East Coast, the Gulf Coast, Midwest and the West Coast. These natural calamities tend to have an impact on the local real estate market. There are many factors that affect real estate and natural calamities are a major factor.

Factors in the homes sector that can be affected by natural calamities

The following factors can be hugely affected by natural disasters such as hurricanes and floods. This is because they will have an immediate and chilling effect on the current state of affairs especially with other factors in play. They include the following

– Reduced home buyer confidence
– A depressed homes market
– Dwindling home sales
– Stalled and slowed mortgage loans performance
– Shaky or non-existent home insurance

These are just a couple of the many effects that natural disasters tend to have on the homes sector. All these factors are mentioned in a hazard disclosure report that should be available to interested investors in the homes sector.

Effects of hurricane Sandy of November 2012

Hurricane Sandy battered the US North East. Some of the most adversely affected states include New York and New Jersey. According to current figures, it is estimated that some 284000 homes were directly affected by the storm while the damages suffered are to the tune of $87 billion. This also tends to affect local businesses with a good number of them folding up while others take ages to recover.

Back in 2005, Hurricane Katrina killed more than 1800 people. Over 750,000 households were displaced. In subsequent years, homes prices in the affected areas along the gulf coast, especially within the city of New Orleans. It is expected that plenty of properties along the US east coast may experience a fall in homes prices overtime as fewer investors and home buyers will be interested in investing here.

San Francisco Earthquake 1989

Back in the year 1989, there was a massive earthquake that hit the city of San Francisco. After that massive earthquake, the resulting damage brought the homes market to its knees. The mortgage industry in the city almost came to a standstill. Homes prices fell to rock bottom while investors showed little or no interest in this matter. The effects of this earthquake rolled over and affected properties in other parts of California. It is feared that the same shilling effects could spill over from areas affected by Hurricane Sandy to larger parts of the US east coast. This could affect millions of homes as Hew York is a large city with millions of properties. The same could happen to New England states as well.


Natural calamities and disasters can have a huge impact on the real estate industry. They will most likely affect consumer confidence, investor confidence and home prices among many other factors.