Three years after Hurricane Ian made landfall with winds of up to 155 miles per hour, Fort Myers Beach continues to grapple with the storm’s devastating aftermath. The once-thriving barrier island is witnessing a transformation that threatens the very fabric of its community. As reconstruction efforts take shape, rising costs for insurance and construction are pushing many long-time residents and small business owners to the brink of financial strain.
Jacki Liszak, the chief executive of the Fort Myers Beach Chamber of Commerce, reflects on the ongoing challenges. “We are nowhere near where we thought we would be three years ago today,” she states, emphasizing the profound impact of the hurricane. Liszak lost her small hotel, The Sea Gypsy Inn, to the storm and now faces daunting reconstruction costs that could reach up to $4 million. “The numbers don’t work,” she explains, highlighting the plight of boutique hotels that once characterized the island.
The rising costs of construction and property insurance are reshaping Fort Myers Beach, making it increasingly unaffordable for the families who once called it home. Local builders like Rob Fowler from Fowler Construction & Development note that many family-run hotels may not survive. “That gentrification is a real thing,” Fowler asserts, pointing to the shift towards expensive resorts and luxury homes fortified against future hurricanes.
Insurance Crisis Amplifies Affordability Issues
The economic landscape in southwest Florida reflects a broader trend seen across the United States. David Burt, chief executive of DeltaTerra Capital, warns that rising home insurance premiums, driven by climate change and increasing natural disasters, are leading to decreased property values. This decline can adversely affect local governments’ property tax revenues, potentially resulting in a “long-lasting economic shock.”
Before Hurricane Ian struck in September 2022, the region was already facing an affordable housing crisis. As older homes were renovated or replaced, many workers were forced to leave the island. “Ian basically hit the fast-forward button on all of that for us,” explains Shelton Weeks, director of the Lucas Institute for Real Estate Development & Finance at Florida Gulf Coast University. The storm caused widespread damage, prompting homeowners to navigate stricter state and federal building codes that add to construction costs.
Recent changes to flood maps by the Federal Emergency Management Agency (FEMA) have reclassified many properties into higher-hazard zones, necessitating even more expensive construction standards. Fowler acknowledges the benefits of these updates for future resilience but admits the costs are prohibitive for many.
As home insurance quotes more than doubled after the storm, the average cost of homeowners insurance in Florida now exceeds $5,700, significantly above the national average. Flood insurance presents another financial obstacle, especially in high-risk zones where coverage is mandatory. For many, the financial burden becomes untenable. Jessica Gatewood, a local real estate agent, recounts a client who sold her home due to escalating insurance costs. After spending around $20,000 on flood mitigation measures, her client was forced to leave the area.
Community Faces Uncertain Future
The repercussions of these rising costs extend to the rental market as well. Melyssa Caballero, who moved to Lee County in 2022, has seen her rent more than double. She expresses concern for the future, noting that many individuals without sufficient income may have to leave Florida. “Little by little, you’re going to see everybody going away,” she states, reflecting on a trend observed in the latest migration report by the Florida Chamber of Commerce, which revealed that nearly 511,000 people moved out of the state in 2023, primarily due to high housing costs.
While some business owners remain hopeful about the future of Fort Myers Beach, the community faces significant challenges. Town councilman Scott Safford acknowledges the need for investment to sustain the local economy. He worries that the mom-and-pop businesses that define the area may be replaced by national chains, further altering the community’s character.
As reconstruction continues amid ongoing uncertainty, Liszak expresses concern about the potential impact of future storms. “That will economically set us back another five to ten years,” she warns. With the ongoing threat of climate change and increasing costs, the future of Fort Myers Beach remains precarious, as residents and business owners navigate a landscape that is ever-changing and fraught with challenges.
