Puerto Rico Earthquake: Aftermath and Housing Impact

first_img Earthquake Puerto Rico 2020-01-09 Seth Welborn  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Puerto Rico Earthquake: Aftermath and Housing Impact About Author: Seth Welborn in Daily Dose, Featured, Investment, News Home / Daily Dose / Puerto Rico Earthquake: Aftermath and Housing Impact Share Save Tagged with: Earthquake Puerto Rico Data Provider Black Knight to Acquire Top of Mind 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Demand Propels Home Prices Upward 2 days ago On Tuesday, January 7, Puerto Rico was struck by a magnitude 6.4 earthquake south of Indios. Puerto Rico, still recovering from the effects of Hurricane Maria in 2017 when the island felt economic losses exceeding $1 billion in Ponce alone. Following the earthquake, CoreLogic expects the economic loss to be maintained within the $1 billion mark.“I am concerned because Puerto Rico hasn’t yet fully recovered from Hurricane Maria, and many of the homes on the island are designed for hurricanes and floods – they’re basically built on stilts, which makes them very vulnerable to earthquakes,” said Leisha Delgado, Founder & CEO, Hello Solutions. “Our experience from Maria tells us that there will be challenges coordinating assistance efforts, and communicating with people in parts of the island without power, so they may not know how to get aid, or know that help is on its way.”According to the United States Geological Survey (USGS), this event has been identified as the main shock event (with 97% probability). A magnitude 5.8 event that struck on January 6 in a similar location is now identified as a foreshock.With Hurricane Maria in mind, much of the damage to homes in Puerto Rico is likely the cumulative effect of damage from different events. While in many cases of earthquakes, the cumulative damage refers to the foreshock, CoreLogic notes that damage is rather from the buildings that were partially damaged from Hurricane Maria in 2017 that have yet to be repaired, causing added uncertainty in loss estimation.CoreLogic also notes that there is uncertainty from the effect of demand surge, where materials are in short supply from the repairs from Hurricane Maria.“As such, there could be an additional spike in the cost of building materials and reconstruction work,” CoreLogic notes. “Because the island has been struck by two events in close proximity, repair costs could easily increase by up to 33% without federal or local government intervention.” January 9, 2020 3,452 Views center_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Previous: Veteran Homeownership Rate Surpasses That of Overall Population Next: Detroit Expands Efforts to Prevent Property Tax Instigated Foreclosures Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days agolast_img read more