The Impact of Hurricane Milton on the Tampa Bay Housing Market: A Dramatic Disruption and Swift Recovery
Tampa Bay Housing Market Bounces Back After Hurricane Milton’s Disruption
October 2023 – Tampa, FL – The Tampa Bay metro area faced a formidable challenge in October as Hurricane Milton, a Category 3 storm, made landfall, wreaking havoc and leaving a trail of destruction in its wake. With a record-setting 129 tornado warnings and hundreds of homes damaged, the hurricane posed a significant threat to the local housing market.
In the days leading up to the storm, the housing market came to a standstill. Sellers pulled their homes off the market, and real estate agents shifted their focus from sales to safety, assisting clients in boarding up their properties and preparing for the impending disaster. The atmosphere was tense, as residents braced for the worst.
However, in the aftermath of Hurricane Milton, the Tampa Bay housing market displayed remarkable resilience. Data from Altos Research reveals a dramatic pause in activity before the storm, followed by an even more astonishing rebound afterward.
During the week of the hurricane, new listings plummeted by approximately 80% across five major cities in the metro area—Tampa, Clearwater, Largo, Brandon, and Riverview. Clearwater experienced the steepest decline, with an 81% drop in new listings. The market appeared to be in a state of paralysis, but the following week told a different story.
As the storm clouds cleared, new listings surged back to life. Largo saw an astonishing 650% increase in new listings compared to the week prior, while Clearwater, Tampa, Riverview, and Brandon reported increases of 400%, 309%, 271%, and 175%, respectively. This remarkable recovery indicates a strong demand for housing, even in the face of recent devastation.
Pending home sales mirrored this trend. The week of the hurricane, new pending sales fell between 45% and 79% across the five cities. Yet, just one week later, Tampa experienced a staggering 185% increase in new pending sales, with Brandon close behind at 183%.
Despite the volatility in new listings, overall inventory remained relatively stable. While all five cities saw a slight decline in inventory during the weeks surrounding the hurricane, the largest drops were less than 10%. By the end of November, inventory began to rise at a healthy pace, signaling a return to normalcy.
Interestingly, home prices remained largely unaffected by the hurricane, demonstrating the market’s resilience. The data suggests that while leading indicators suffered sharp declines during the storm, they rebounded with even greater intensity shortly thereafter.
As the Tampa Bay community begins to rebuild and recover, the housing market’s swift recovery offers a glimmer of hope. Real estate professionals and residents alike are optimistic about the future, ready to embrace the opportunities that lie ahead in a market that has proven its ability to withstand even the most disruptive forces.
In the face of adversity, the Tampa Bay housing market stands as a testament to resilience, adaptability, and the enduring spirit of its community.