As Florida markets work to rebuild from devastating Hurricane Ian, homeowners are confronted with inflated prices for building materials, adding insult to injury amid comprehensive recovery efforts across the Sunshine State. Building material prices fell 0.3% in September and are down 2.3% from June, but remain elevated after soaring to record highs during the pandemic, Insurance Journal reports.
Worst of all, surging demand for materials from builders reconstructing after Ian could send prices even higher, and Florida homeowners could also see much higher insurance premiums in the near future, experts say.
This underlying inflation is “definitely a problem,” [Bob] Hartwig said, “but less of a problem than it would have been six months or a year ago, and that’s because of the cooling of new home construction, which is leading to greater availability for building materials and even labor.”
On the provider end, he explained that insurers will look to build that inflationary trend into 2023 rates and beyond. When this happens, Hartwig estimated hundreds of thousands of Floridians will experience dramatic increases in premiums. Others may be dropped from their providers entirely.
Advertisement
Related Stories
Awards
6th Annual Most Valuable Product Awards
Drumroll ... Please join us in celebrating our 6th Annual MVP Awards winners, which represent the best in innovative building products
Sustainability
Fortera Takes Concrete Steps to Reduce the Climate Impact of Cement
Clean-tech company Fortera, which uses technology to capture carbon emissions form cement manufacturing, will open its first commercial-scale operation on April 12, 2024, in California
Building Materials
Lumber Leads Building Materials Prices Higher in March
Overall, the cost of building materials rose during March, with softwood lumber, gypsum products, and concrete all seeing price increases. Only steel mill materials saw price drops