Three years after the devastation of Hurricane Ian, Fort Myers Beach is grappling with escalating disaster and insurance costs that threaten the financial stability of its community. The hurricane, which struck in September 2022 with winds reaching 155 miles per hour and a storm surge of 15 feet, left significant destruction in its wake. Reconstruction efforts have begun, but rising expenses are pushing many long-time residents and small businesses out of the area.
Jacki Liszak, chief executive of the Fort Myers Beach Chamber of Commerce, reflects on the slow recovery. “We are nowhere near where we thought we would be three years ago today,” she stated, having lost her small hotel, The Sea Gypsy Inn, to the storm. The rebuilding process has become prohibitively expensive, with estimates for her hotel reaching around $4 million. Liszak cautions that many of the family-run hotels that once defined the beach community may not survive the financial pressures.
The situation is further complicated by skyrocketing construction and property insurance costs. Local builder Rob Fowler notes that the shift in Fort Myers Beach reflects a broader trend in southwest Florida. “That gentrification is a real thing,” he remarked, emphasizing that only wealthier developers can afford to invest in the area now. The influx of affluent newcomers has contributed to an affordable housing crisis, which was exacerbated by Hurricane Ian and its aftermath.
Insurance premiums in Florida have surged dramatically, with the average homeowner’s insurance costing over $5,700 this year, according to Bankrate. This figure places Florida among the states with the highest rates, trailing only Nebraska and Louisiana. The costs of flood insurance are also rising, with many coastal residents required to purchase coverage due to the risk of flooding.
Many homeowners are feeling the pinch of these rising insurance costs. Karen Rodriguez, an executive at Habitat for Humanity of Lee and Hendry Counties, indicates that insurance quotes have more than doubled since the storm. The Federal Emergency Management Agency (FEMA) has also revised flood maps for Lee County, pushing many properties into higher-hazard zones and requiring homeowners to adhere to stricter rebuilding codes.
The effects of Hurricane Ian have reverberated through the housing market. According to Redfin, the median time homes remained on the market in Lee County increased by 26% in October compared to the previous year. Jessica Gatewood, a local real estate agent, highlights the struggles of her clients who are trying to sell homes burdened by high insurance costs. One client faced annual insurance bills nearing $10,000 after experiencing significant flooding during the hurricane.
As housing prices continue to drop—down more than 10% from a year earlier—many residents fear foreclosures are on the horizon. Gatewood predicts that if economic conditions persist, families may be forced to leave, as many are struggling to make their monthly mortgage payments.
Rising rents are also affecting the community, as landlords pass on increased insurance costs to tenants. Melyssa Caballero, who moved to Lee County from Miami in search of more affordable housing, has seen her rent double. She expresses concern about her ability to stay in Florida as housing costs continue to rise. “Little by little, you’re going to see everybody going away,” she said, reflecting on her niece’s decision to move to Ohio for cheaper living.
The Florida Chamber of Commerce reported that approximately 511,000 people moved out of the state in 2023, marking the highest number on record. Many of those who left were young workers, aged 20 to 29, an age group critical for economic growth. High housing costs were cited as the primary reason for this mass exodus.
While business owners and local officials remain hopeful about the future, there are deep-seated concerns about the sustainability of Fort Myers Beach’s economic landscape. Town councilman Scott Safford acknowledges that while the community is on the path to recovery, many small businesses are unlikely to return, paving the way for larger chain establishments.
“We’re going to need development to sustain the tax base,” Safford noted. As the town races to rebuild, the specter of another storm looms large. Liszak fears that any future hurricanes could deter potential investors and set back recovery efforts by another five to ten years. The community remains at a critical juncture, balancing the need for reconstruction against the harsh realities of rising costs and a changing demographic landscape.
