The economic successes of Asheville, North Carolina, and Tampa, Florida have been evident in their low unemployment rates and booming new home construction, keeping up with post-Covid population surges. However, recent hurricanes Helene and Milton have threatened to reverse these gains, leading to widespread destruction, power outages, and business closures in the affected areas. Despite these challenges, past experiences with hurricanes such as Katrina, Harvey, and Irma have shown that economic activity can rebound within a year to levels similar to or greater than before the disasters.
According to a 2020 report from the Government Accountability Office, economic activity in major metropolitan areas impacted by hurricanes Katrina, Harvey, Irma, and Sandy rebounded within a year following the disasters. The report measured economic activity through various factors such as the labor market, housing market, credit market activity, and overall income and output. It also noted that larger communities with specialized disaster management staff and access to more emergency funds tend to recover faster compared to smaller communities.
The amount of aid and insurance coverage received by residents in the aftermath of hurricanes Helene and Milton will play a crucial role in determining the speed of recovery for affected areas. Adam Kamins, a senior director and regional economist at Moody’s Analytics, pointed out that an influx of federal aid could potentially boost jobs post-disaster. However, the impact of rising insurance rates on potential relocation and economic recovery remains a concern, particularly in Florida. Inland areas of North Carolina, where many residents lack flood insurance, are likely to heavily rely on federal aid for rebuilding efforts.
In Asheville, where tourism has seen significant growth in recent years, concerns have been raised about the long-term effects of businesses choosing not to rebuild due to lack of insurance or fear of future disasters. This could have a lasting impact on the local economy and infrastructure. While federal aid and insurance coverage will play a significant role in the recovery process, uncertainties remain about the potential exodus of residents and businesses in the aftermath of hurricanes Helene and Milton. The ability of these areas to rebuild and revitalize their economies will depend on a combination of immediate aid, long-term planning, and community resilience.
