Sandy impacts shoreline property values

Hurricane Sandy crashed onto the shores of Connecticut on October 29, 2012 and left considerable damage in its wake. Shoreline homes were left with immense amounts of water damage and repair bills. Now, almost a year later, many homes near the beach are still vacant. A short drive around the neighborhood will reveal that many homes are undergoing new construction to ensure they do not have to endure the same damage again.

The trouble for the homeowners is that the construction necessary to prevent this kind of damage is very costly. FEMA regulations dictate that if a home suffers damage worth more than 50% of the home’s value the house must be raised. Homeowners are undergoing the process of elevating their homes, but at a cost that may be too much for many to handle. With damage valued above the 50% threshold, they need to be elevated, but the cost of doing so outweighs the cost of demolition for many homes. Numerous houses that once dotted the shoreline community may now be demolished instead of raised.