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39 » VISIT US ONLINE @ DSNEWS.COM FIRES, FLOODS, AND ECONOMIC FALLOUT Annual losses from disasters have trended upwards in recent times and have caused $1.7 trillion in economic losses between 1980 and 2018. According to research on natural disasters by the Urban Institute, one of the key reasons for the increased losses has been a rise in the occurrence of natural disasters. e research also highlighted the changes in the prevalence of wildfires, both their annual numbers and their place in the disaster reporting system. It revealed that hurricanes were more likely to cause damage than wildfires. In fact, hurricanes have caused roughly half the economic losses even though they accounted for only one in six major disaster events. Citing data from the National Oceanic and Atmospheric Administration (NOAA) between 1980 to 2018, the research said that 2017 was the most expensive year for major disasters during this period. It indicated that in 2018 dollars, losses between 1980 and 2017 totaled $1.7 trillion. Of these, 2017 had the highest annual losses at $313 billion, primarily from Hurricanes Harvey, Irma, and Maria. NOAA estimated their respective losses at $128 billion, $51 billion, and $92 billion (totaling $270 billion), "which is 26% larger than the 2005 total from the hurricane trio of Katrina, Rita, and Wilma ($215 billion). Losses from wildfires were also at a historic maximum in 2017 and 2018, according to the NOAA data, destroying more than 15,000 homes, business, and other buildings. NOAA estimated these wildfire losses at $18.4 billion, "three times its next-highest previous wildfire loss estimate of $6.2 billion from the Oakland firestorm of 1991." In 2018, the losses from the Paradise wildfires were estimated at $24 billion. Looking at the assistance provided by the Federal Emergency Management Agency (FEMA), during such events, the brief indicated that housing assistance made up the largest part of individual assistance (IA) given by FEMA. However, while public assistance (PA) has remained universally available, IA has declined in recent times. e report indicated that of the 46 major disasters declared in 2016, FEMA authorized IA payments for only 18 compared with PA that was available for all the 46 major disasters. Another area that has seen a noteworthy decline in assistance is the Disaster Unemployment Assistance (DUA). e research suggested that the comparative scale of IA and DUA payments must be recognized to understand this trend. Giving an example, the report said that in 2016, IA authorizations totaled $1.3 billion while DUA payments totaled only $3.7 million. is was because most IA payments compensated for property damage. It concluded that major disasters are becoming more frequent, averaging from 13 per year in the 1950s to nearly 60 per year now. Fire management declarations have also increased, from less than five per year in the 1970s to nearly 50 per year now. All three categories of disasters (major disasters, emergency declarations, and fire management declarations) experience wide variation in annual occurrences. SINGLE-FAMILY RENTALS: "A CLASS IN AND OF ITSELF" Investors are capitalizing on smaller, single- family homes, with a Forbes report stating that single-family assets are "viable and a class in and of itself." e report explains that most institutional- level investors began showing interest in single- family rental following the Great Recession, purchasing foreclosed homes. "Recent advances in technology, increasing transparency, and the removal of operational difficulties have all given rise to the ability to not only invest in, but also manage properties from afar," the report said. "All of these factors have combined to help establish [single-family rental] as a large-scale, fully-fledged asset class." Forbes states that single-family, along with multifamily residences, make up more than 53% of U.S. rentals—approximately 23 million units. An estimated 13 million new rental households are expected to arrive by 2030. "Housing stock isn't projected to keep up with this demand, meaning there's great potential for investors who own income properties," Forbes reported. Also contributing to the growth of single- family investments is that many operations difficulties have been removed. e report added that many management services accommodate the needs of larger investors, with property managers providing services at scale. "No longer do they max out at 20 or 30 properties. Instead, many have the resources to oversee hundreds, if not thousands, of properties," the report said. "is frees up investors to purchase properties that are out of state, and it allows them to invest in more units than they could manage if they were overseeing everything on their own.

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