Hurricane Ian Among the Costliest Storms on Record;
Impact Puts Emphasis on Alternative Housing Options
Slowing macroeconomic environment adds hurdles to recovery efforts. Hurricane Ian made landfall in Southwest Florida on September 28 as a Category 4 storm, bringing torrential rainfall and winds to much of the state, as well as parts of South Carolina. Southwestern Florida counties — including Collier, Lee, DeSoto, Hardee and Charlotte — were some of the most affected, with winds up to 150 miles per hour and a storm surge that surpassed 12 feet, causing significant damage to these communities. Insured losses alone are projected to surpass $67 billion, making Ian one of the costliest storms in Florida history without yet accounting for the broader infrastructure damage and uninsured losses. Economic recovery efforts from hurricanes are generally evident within two to six quarters after the event, however, other current economic hurdles may extend this timeline. Ongoing supply chain constraints, rising interest rates and widespread inflation may lead to a longer and costlier rebuilding period relative to previous storms, particularly in Southwest Florida. The recovery timeline may not be as extended in North and Central Florida, as well as Coastal South Carolina, where impacts from the storm were much less severe.