Hurricane Irma might be gone, but the chaos it brought to Florida’s housing market will linger for a long time.
According to a new report from Black Knight Financial Services (BKFS)
, the FEMA-designated disaster areas in Florida that were impacted by Hurricane Irma covers more than 3.1 million mortgaged properties in 37 counties, which is more than 90 percent of all mortgaged properties in the state.
Black Knight estimated that there are $517 billion in unpaid principal balances in Irma-related disaster areas, which is nearly three times the amount as in those related to Hurricane Harvey and more than 11 times of those connected to now-infamous Hurricane Katrina in 2005.
“While the total extent of the damage from Hurricane Irma is still being determined, it is clear that the size and scope of the disaster is immense,” said Black Knight Data & Analytics Executive Vice President Ben Graboske.
Graboske added that while Florida is coming to terms with the Irma-induced damages, the Puerto Rican housing market was mostly spared.
“As Irma forged its path of destruction through the Caribbean, one relatively positive development was that Puerto Rico escaped the direct hit many had predicted,” he continued. “From a mortgage performance perspective, this was particularly good news, as delinquencies there were already quite high leading up to the storm. At more than 10 percent, Puerto Rico’s delinquency rate is nearly three times that of the U.S. average, as is its 5.8 percent serious delinquency rate. In contrast, the disaster areas declared in Florida have starting delinquency rates below the national average, providing more than a glimmer of optimism as we move forward.”