Rebuilding a home post disaster

I was listening to this week's All In podcast, and there were some armchair quarterback ideals and posturing being thrown around. Free market this, price control that, permit regulations here, rebuilding speed there. A lot of stuff to unwind from people who have never gone through any kind of rebuild after a natural disaster. Without casting aspersion or hot takes, here's what I remember about my father rebuilding post Katrina.

Background: my father owned by grandmother's house when Katrina hit. He wasn't living there, but he owned the house -- basically pre-buying something he would receive by inheritance and gave her money to live on. I guess sort of like a familial reverse mortgage. Katrina hits, the house is destroyed, the city is in shambles, the region takes a toll. My father's townhouse escapes relatively unscathed. It was at the top of the Metairie ridge, not far from the 17th Street canal (upstream from the breach). He had a safe place to live and assess the situation, while grandma moved to my aunt's in Tennessee.

My father wasn't rich, but he had money. Definitely not baller, but not hurting either. Post destruction, he was in the position to rebuild that home without waiting for insurance money. Most people (myself included) would need to wait for an insurance check and OK before proceeding with even clearing the lot. He paid to have the lot cleared and prepped for construction while an architect started working on plans. He wasn't going to rebuild the same home from the 1950's; he was going to build a new home. Keep in mind that this is not how normal home insurance works. If your home burns down, you generally don't get a payout and freedom to do what you want. You get your old house rebuilt exactly how it was. Yes, there are caveats for code upgrades but overall you'll get the house you had.

The local planning department put a freeze on permits while they drafted new regulations about lot height, drainage, utility entrances, etc. Waiting waiting waiting. Meanwhile there are construction crews leaving flyers and mail about offering services. Once he does finally get approval to build to the new regulations (I think he was the first in Old Metairie), there were no shortage of people ready to work.

Finally, the house is built. The plumbers and electricians were from Mobile (Mississippi was moving even slower on rebuilding there). The roofers were from Texas. The framers were from Israel. Yes, Israel. They all came in to work, following their own economic incentives. As such, my dad actually got a good deal because he had a permitted job and the means to pay, whereas everyone else was waiting and waiting and waiting. Over the next 4-5 years, folks in his area rebuilt and things now look like a hurricane never came (unless you look at how raised the lots are now).

So a couple of lessons learned here:

• First movers generally have an advantage. Be that defined by money, speed, etc.
• AHJ will generally drag on in drafting new guidelines and code, contrary to what any politician says in front of camera.
• Price controls aren't necessary. The market will work it out.
• Labor will move around as necessary to fill the need. The local construction labor market was wrecked (they all lost their homes and had to leave), so nearby labor moved in to fill the vacuum. It all works out without the need for government intervention.
• It's good to have a place to live. Not being sarcastic here, but my father was able to rebuild that house so quickly as he already had a place to live.  FEMA trailers were eventually allowed on lots for living, and the local building department will waive the lot's red tag for temp housing.
• It's a harrowing experience, but try to be positive. My grandmother was 86 when she lost her house. She could have moped and dwelled on what she lost. Instead, she had a positive attitude "Now I get to go shopping!" and even somewhat nonchalant about the whole thing "Well now I get to see what house you'd build after I died and you tore the old place down." Yes, she was lucky to live with her daughter and family.  I think her attitude helped everyone get through the situation and live a good life to the age of 103. She lived another 17 years post Katrina, so think about that when you feel like a tragic event is the end of everything.