You might expect home prices to plummet after a major disaster like Hurricane Harvey. The storm brought record-breaking rain and severe flooding to Texas in 2017, damaging thousands of homes.

But in Aransas County, where Harvey made landfall, prices bounced back from an initial plunge, climbing more than 18% above the pre-hurricane level within three years. That’s not unusual. An Investopedia analysis of home listing prices, based on data from Realtor.com, found that real estate markets in areas hit by the costliest natural disasters of the past decade mostly shrugged off the disturbances. If home prices in these areas did dip, they usually rebounded within three years. 

Understanding how home prices behave after calamities can help you make financial decisions about buying or selling a home in disaster-prone areas.

How Home Prices Changed After 10 Huge Disasters

From hurricanes to wildfires, natural disasters have tested the resilience of U.S. housing markets. Here’s how home prices changed over three years in 10 counties hit by the costliest natural disasters of the past decade.

Hurricane Harvey: Aransas County, Texas (Aug. 25-29, 2017): Drop-Rebound

• Median listing price August 2017: $298,650
• Median listing price August 2020: $355,000
• Percentage change: 19%

Hurricane Harvey made landfall in Aransas County, bringing record-setting rain and widespread flooding to Texas. The storm displaced more than 30,000 people and destroyed more than 200,000 homes and businesses. But in Aransas County, real estate prices recovered to pre-hurricane levels by February 2020 and climbed another 19% by the third anniversary of Harvey.

Hurricane Ian: Lee County, Florida (Sept. 28-30, 2022): Still Struggling

• Median listing price September 2022: $465,000
• Median listing price May 2025 (latest data): $429,900
• Percentage change: -7.5%

Hurricane Ian brought 150 mph winds to Florida, destroying large parts of coastal communities and causing more than $120 billion in damage. Listing prices in Lee County have yet to recover. In May, the median price was 7.5% lower than when Ian hit.

Hurricane Ida: Lafourche Parish, Louisiana (Aug. 29-30, 2021): Early Spike, Then Leveling

• Median listing price August 2021: $206,500
• Median listing price August 2024: $228,905
• Percentage change: 11%

Hurricane Ida caused widespread power outages after making landfall in Lafourche Parish, Louisiana, and damaged every home in the barrier island town of Grand Isle. Nonetheless, listing prices in the area shot up in the first 10 months after the storm before settling in a lower range, but they’re still 11% higher than before.

Hurricane Helene: Taylor County, Florida (Sept. 26-27, 2024): Delayed Drop-Rebound

• Median listing price September 2024: $304,500
• Median listing price May 2025 (latest data): $289,000
• Percentage change: -5.1%

Hurricane Helene brought 15 feet of storm surge when it made landfall in Taylor County. It also caused historic flooding in North Carolina, ending up as the deadliest hurricane to strike the U.S. since Katrina. Yet home prices in the affected Florida region were stable until dipping in February of this year. As of May, they were on the rise, but still down about 5% from pre-Helene levels.

Hurricane Irma: Monroe County, Florida (Sept. 10, 2017): Stairstep Rise

• Median listing price September 2017: $675,000
• Median listing price September 2020: $867,000
• Percentage change: 28%

Hurricane Irma destroyed 25% of the buildings in the Florida Keys and caused major flooding in Florida and South Carolina. Yet housing prices in Monroe County never skipped a beat and climbed almost 30% in the three years after the hurricane.

Hurricane Milton: Sarasota County, Florida (Oct. 9, 2024): Nowhere But Up

• Median listing price October 2024: $462,450
• Median listing price May 2025 (latest data): $490,000
• Percentage change: 6%

Milton is the most recent disaster on our list, having made landfall about a week after Hurricane Helene. It caused widespread storm surge damage and spawned dozens of tornadoes in southern Florida. It sparked a surge in listing prices in Sarasota County, too. As of the latest reading, prices are up 6%.

Hurricane Michael: Bay County, Florida (Oct. 10, 2018): Rocky Ride Up

• Median listing price October 2018: $285,000
• Median listing price October 2021: $408,500
• Percentage change: 43%

Western Wildfires: Butte County, California (June to December 2018): Drop-Rebound

• Median listing price June 2018: $319,000
• Median listing price June 2021: $452,250
• Percentage change: 42%

Hurricane Florence: New Hanover County, North Carolina (Sept. 13-17, 2018): Steady Rise

• Median listing price September 2018: $341,951
• Median listing price September 2021: $431,950
• Percentage change: 26%

Hurricane Laura: Cameron Parish, Louisiana (Aug. 20-29, 2020): Drop-Rebound

• Median Listing Price August 2020: $325,000
• Median listing price August 2023: $324,850
• Percentage change: 0%

Why Do Some Markets Rebound?

All of the markets we examined, except for Lee and Taylor counties in Florida, saw listing prices rise within three years after being struck by major disasters. Nadia Evangelou, senior economist for the National Association of Realtors, said one explanation is that the housing supply plummets after a disaster. 

“This rapid drop in available homes brings competition to the market, putting upward pressure on prices,” she said. “For example, following Hurricane Katrina, home prices in New Orleans surged, rising 17% between Q2 and Q4 of 2005, as the market adjusted to the limited inventory.”

The rebound typically starts a year or two after the disaster, depending on the market, Evangelou said. 

“In some places, long-term recovery is slower,” she said. “In today’s environment, rising costs–including property insurance, flood insurance, and condominium reserve fees–can extend the time it takes for some markets to bounce back.”

In Lee County, it’s been hard to get home insurance after the storm, making it difficult to secure a mortgage, Evangelou said. And in Taylor County, which is more rural, the recovery has naturally been slower, and prices have been more volatile due to fewer transactions.

What This Means If You Want to Buy or Sell a Home in These Areas

Jorge Vazquez, CEO of Graystone Investment Group, has invested in thousands of properties in the Tampa Bay area. He believes disasters offer buying opportunities.

“Disasters are a really good time because there’s less competition,” Vazquez said. “Sellers are overwhelmed.”

Homeowners may be eager to leave a location after a disaster, creating an opportunity for buyers, especially if they have enough cash to make a purchase quickly. You may be able to pay less than you would have before the storm, but weigh the numbers carefully: How much will it cost to rebuild, possibly repeatedly if there are more disasters? What’s the cost of insurance, and will you need a flood policy? How much can the property earn in rent or in a future sale?

While climate change has increased the intensity of hurricanes, it’s not clear whether climate change is increasing their frequency. Until that changes, Vazquez is taking his chances.

“If lightning strikes once in the area, the odds are against it happening again,” he said.

What to Know About Disaster Risk

While housing prices typically recover after disasters, that doesn’t erase the risk. Whether you’re a homeowner or home buyer, it’s essential to understand the risks tied to your property. Here are a few things to check:

• Look up your disaster risk: Use tools like FEMA’s National Risk Index or Risk Factor to look up the flood, fire, and climate risks tied to an address.
• Find out if you need flood insurance: Homes in designated flood zones usually require it. Even if it’s not required, it may be worth getting a quote from the FEMA website.
• Review your insurance options: In disaster-prone areas, you may be limited to getting a state FAIR plan–a government-backed, often costlier insurance option–because private coverage is too hard to find or expensive.

The Bottom Line

Most housing markets see listing prices rebound within a few years of a major disaster, partly because reduced supply drives up competition. But the speed of recovery depends on where you live and the nature of the disaster. Buying property after a disaster may be a good opportunity because sellers can be eager to leave affected areas. Still, while prices often recover, it’s crucial to understand the disaster risks tied to any property you own or plan to buy.