How Will This Affect The Economy?

Hurricane Milton is one of the most shocking parts of 2024’s weather history. Once considered to be a nonissue compared to Hurricane Helene, the hurricane’s power rapidly ratcheted up to a Category 5 before making landfall in Florida as a Category 4. 

The end result is a one-two punch for Floridians who are still reeling from the hurricane last week. But, what does this mean for the local economy and beyond?

Real Estate Woes

With winds potentially reaching over 120 miles per hour and 20-foot storm surges, the hurricane is due to make many parts of Florida unlivable. Housing will be shaky at best. Building will become necessary—and insurance will become scarcer than ever before.

Floridians will rebuild, but it always comes at a cost. Hurricane recovery for Helene is estimated to clock in at around $47.5 billion for property owners alone. The area hit by Helene is less populated, less tech-filled, and generally less expensive to repair. 

Current estimates suggest that Milton’s damage could total $175 billion, with a decimated Disneyland costing as much as $200 million or more to rebuild. Speaking of Disneyland…

Tourism Decline

Much of Florida’s economy (as well as the national vacation economy) is built on tourism. We all know at least one family who swears by Disney vacations, a Florida cruise, or a timeshare in the area. 

Well, most of those areas will be cratered for the upcoming year. Tourism will struggle while the state rebuilds. If major parks are hit to the point of closure, it may take years for tourism to recover to pre-Milton years. 

This could lead to serious job losses and employment shortages for years.

Supply Shortages

Milton will undoubtedly destroy commercial buildings, including warehouses, shipment centers, factories, and more. This will lead to ruined inventory, shortages, and delays in getting supplies to where they need to be.

After Hurricane Helene wiped out a major IV fluid factory in the Carolinas, the entire nation had to undergo protocols to conserve IV fluid use in hospitals. Depending on what factories and warehouses get hit, we could see similar issues arise. 

Since you can’t work in a destroyed warehouse or factory, it’s likely that workers would be furloughed until their places of business are fixed. This will drop spending and increase the number of people declaring bankruptcy. 

Major Losses, Little Recourse

Many Floridians do not own flood insurance or home insurance. They will lose everything in the storm. Because FEMA is already underfunded, it’s uncertain what this will mean for storm survivors. 

The worst-case scenario is likely for some families: they may end up losing everything and being unable to get financially stable again. When that happens en masse, it can and will affect local businesses, too. 

No matter how you look at it, this hurricane will be rough. The best way to prepare for a hurricane’s damage is to stock up on food, try to prepare your property (if it’s in the way), and try to weather the storm best you can.