Florida is a giant sand bar; Tall, thin and flat
We often talk about the incredible increase in the value of real estate in the last five years in the Greater State of Florida. The state of the hurricane, if you will, as it is so flat that there is hardly anything to stop a massive hurricane. But some still wonder why someone would pay so much to live on a giant sandbar.
In fact, most of Florida is a sandbar, except for the Panhandle and over the Orlando area. There are a few places with rocks underneath that extend past I-95, but let’s face it, Florida is a giant sandbar, which is tall, thin, and flat. You perfect runway model if you will, what is a good analogy since it is a beautiful sand bar at that? Sudden increases in real estate is one thing, but is that the only type of increase we should consider there?
But why would anyone want to live less than 12-18 feet above sea level when Hurricanes Cat IV and V are known to produce more than 20 feet of storm surge? Can you say a submerged sand bar? And how do we know that whole parts will not move completely one day? Quicksand is well known on sandbars, you see.
If you own Florida real estate, I’m not trying to hurt your property values and I really wish you the best, but from a philosophical point of view, you know that doesn’t make a lot of sense, does it? You might consider all of this in 2006.