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Not clear yet how housing destruction from the 2005 hurricane season will impact housing prices.

Reduced quantity in the face of persistent demand yields intense upward pressure on prices. Given the time required to replace housing inventory, it will take years to replace the lost housing inventory. This impacts housing prices far from the Gulf coast, as displaced families resettle elsewhere. Could it be that the press is intentionally providing misleading coverage of housing market performance out of their fear to admit anything is going well in the U.S.?

In as much as the most severe hurricane damage takes place right at the shore, it may be that the destruction of rental property and 2nd homes will mitigate price pressure.

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