Will Natural Disasters Change the Landscape of This Country?
The most underreported story involves the aftermath of these hurricanes and raging fires in California. If you look at it on paper, it doesn't look very good. First, you have to consider the enormous amount of damage and rebuilding because of the one-two punch of two powerful hurricanes. Then consider that the wildfires in California that are still occurring have wiped out more property than Hurricane Harvey. Just to give you an idea, the price of lumber has risen 21% since the storms. So, here are the questions that need to be answered.
1) How high will the price of building materials go? There has to be increasing demand with all of the need.
2) What will this do to the demand and pricing of houses in the DFW area especially considering that all of these people are moving to this area? After all, we depend on new builds as a way to manage supply.
3) Will a builder build additional houses given an elevated price in building costs? Can the builder push these higher costs on the consumer?
4) Will these communities along the gulf coast rebuild considering most don't have flood insurance? Will some of these towns cease to exist?
5) There is already a shortage of workers. Would a worker opt to go to California to potentially make more money creating an even greater demand for workers in the DFW area?
6) Can the DFW area sustain even higher home prices?
This is the unfortunate problem in this country. We pay attention to the natural disaster with 24/7 news coverage. However when it is over the news cycle goes to the next great thing when people are hurting, trying to survive, and rebuild. Two monster hurricanes and a wildfire out of control might change the landscape of our country. Yet, we are too busy trying to figure out if the Russians were the blame for Hillary's loss.