The Aftermath of Disasters: The Menace of Disaster Gentrification

This narrative, originally featured on Grist, is part of the Climate Desk collaboration and is a segment of “The Disaster Economy,” a Grist series delving into the often disorderly yet profitable realm of disaster response and recovery. It is published with the support of the CO2 Foundation.

The St. Louis Tornado: Immediate Impact

On May 16, when a mile - wide tornado struck St. Louis, DeAmon White promptly got into his car and raced home. Navigating through downed trees and power lines, his 10 - minute commute transformed into a three - hour ordeal. During this time, he anxiously wondered whether his family, neighbors, and home had emerged unscathed.

Upon turning the corner onto his block, White's heart sank. The entire back wall of his house had been blown off. Ceiling plaster chunks littered the floor, windows were shattered, and much of his property was irreparably damaged.

Subsequently, White checked on his mother, Bobbie, who lived a five - minute walk away. The third floor of her home had vanished. Miraculously, her front - yard flower garden endured the 150 - mph winds untouched.

The St. Louis storm, an EF - 3, was one of 60 tornadoes that ripped through Missouri, Illinois, Kentucky, Wisconsin, Minnesota, and the Carolinas over 48 hours in May, claiming at least 26 lives and injuring 168. DeAmon and Bobbie counted themselves fortunate; a neighbor had his leg impaled by a pole that flew through his window. Bobbie sought refuge at her sister's house to sleep, while DeAmon spent the night in his truck, taking turns with neighbors to deter looters.

The Influx of Speculators

The following morning, at 8 am, the phone calls began. Would he be interested in selling his home? “They were aggressively pursuing it,” he stated. This persisted for the next two weeks, with half a dozen calls daily.

Bobbie and DeAmon labeled the speculators “vultures.” Some distributed flyers on the street, some sent texts, and others made phone calls.

In White's West End neighborhood, it is estimated that 63 percent of renters and 49 percent of homeowners are uninsured. For many North St. Louis residents, their homes are their sole major asset, meaning they lack the funds to rebuild without insurance. When federal aid arrives tardily, quick cash offers to buy a home can seem like a lifeline.

“Hi, this is Paul with H.B. LLC,” read a text sent to a homeowner just north of the tornado's path on August 4. “Touching base with you … is this Steven?”

Grist attempted to contact several of these numbers, but most were not configured to receive call - backs or texts. One, however, did answer. A woman, sounding as if she were in a call center, inquired if there was a property for sale. “We're a ‘we buy homes’ company,” she said, yet repeatedly declined to disclose the company name to Grist.

Similar Incidents Elsewhere

Eight months prior and 600 miles away, Gina Miceli's community in Fairview, North Carolina, was devastated by Hurricane Helene, which triggered hundreds of landslides. The rushing earth engulfed homes and cars and claimed the lives of 15 of her neighbors. In the months that followed, she received nearly constant texts asking if she would be open to selling her family's two plots of land.

“They text in a chummy manner, so they seem like they already know you,” Miceli said. “‘Hey, Gina, it's so - and - so!’ It's extremely creepy.”

“Let me know your price,” said one text on July 9, signed simply, “Bella.”

“Hi there Gina, hope you're having a great day,” said another exactly two weeks later. “My name is Christine, I am a land buyer. I'm reaching out to see if you have any plans to sell the lot.” The text was signed by “Twin Acres.” Twin Acres is not a registered real estate broker. Grist's attempt to reply to the text went unanswered.

Miceli sometimes responds to the texts. “It depends on my mood. I think there was a time or two I said, ‘Go to hell.’” She has no intention of leaving. She is raising her family in the home her husband's grandparents purchased and owns a local brewery.

The Concept of Disaster Gentrification

Some theorists term this phenomenon “disaster gentrification,” where real estate investors swarm a disaster - stricken area to purchase damaged properties at low prices.

Samantha Montano, a professor of emergency management and author of the book Disasterology, witnessed this firsthand after spending years living and working in New Orleans following Hurricane Katrina. In areas such as the Lower Ninth Ward, some individuals displaced by the storm lacked the resources to return. Speculators rushed in. Some landowners became instant millionaires by selling their properties to out - of - state developers aiming to rebuild and flip the property.

“The issue of gentrification in New Orleans was present from the start,” Montano said. “There were numerous groups warning about it, advocating for housing and other recovery policies to account for gentrification. [They] attempted to prevent it.” Twenty years later, the demographics of New Orleans have shifted: Lower - income and Black residents have been displaced, and whiter, wealthier new residents have taken their place. “Certainly, all of this is closely intertwined with the recovery process and who had access to the resources to return and rebuild—and who did not,” she said.

Corporate Involvement in Disaster - Stricken Areas

In the aftermath of the Eaton Fire in Altadena, California, earlier this year, half of home purchases were made by limited - liability corporations, according to Dwell, the home - design news site. This is nearly double their typical representation compared to individual homebuyers. Just six companies—including Ocean Development Inc. and Black Lion Properties LLC—dominated these transactions in Altadena, investing millions of dollars to acquire destroyed properties in historically Black neighborhoods. Identifying these companies is challenging: Often, they contact potential sellers through fake phone numbers or under names not necessarily associated with legitimate corporations.

The value of disaster - struck land consistently rebounds rapidly, meaning buyers can flip the land or homes—sometimes even without making repairs. As climate change exacerbates the frequency of severe natural disasters across the United States, “disaster investors” seem poised to reap greater profits than ever—and communities like North St. Louis are likely to bear the brunt.

Justin Stoler, a University of Miami researcher focusing on urban health disparities, recently published a paper on hazard gentrification. Stoler told Grist that this phenomenon differs from the standard understanding of gentrification in its speed. “It typically occurs in a very abrupt, short - term manner. It doesn't necessarily take years or decades to unfold.”

“People's lives are completely upended, and they must make difficult choices,” Stoler said. “Opportunistic entities, companies, and investors attempt to step in and secure a good deal. Ultimately, you end up with a system where people exploit the misfortunes of others.”

Signs of Gentrification Before and After the Tornado

In DeAmon White's neighborhood, signs of gentrification were evident long before the tornado: A community barbershop was replaced by a trendy new restaurant; a former school was transformed into an upscale apartment building occupied by law students; and “a lot of white folks were moving into what they used to call ‘the hood,’” he said. Investors were already on the prowl. Signs with “WE BUY UGLY HOUSES” could be found on utility poles and in mailboxes before the May storm. These are indicators of real - estate wholesalers and house - flippers seeking a quick sale. The frequency and aggressiveness of these signs increased after the neighborhood was reduced to rubble, he said.

It is premature to determine whether the St. Louis tornado will lead to large - scale land acquisitions. However, signs and Zillow search results suggest this may be the case.

In recent weeks, at least 10 severely damaged homes in the tornado's path have been listed for sale on the real - estate platform Zillow. Each is labeled not as a home for local occupancy but as an investment opportunity: 4641 Maffit Avenue “offers investment potential” for rehab or brick salvage, with a starting bid of $20,000; 4236 East Sacramento Avenue—“Investor Special!! Tornado - damaged property”—in the historic Ville neighborhood is priced at $30,000.

The Lingering Impact and Struggles in St. Louis

100 days after the storm, many St. Louis neighborhoods remain as damaged as they were on the day of the May tornado. Debris still litters the streets and yards, blue tarps still substitute for caved - in roofs, and windows are still boarded up—even as the weather cools. Community activist organizations are providing aid where possible. One group, The People's Response, which mobilized approximately 10,000 volunteers, estimates that over 2,000 St. Louis households still require housing and shelter assistance.

Despite a robust volunteer network, $30 million from an NFL settlement redirected towards tornado relief, and (slowly arriving) FEMA aid, homeowners have been left in limbo for months, grappling with the difficult decision of how—or even whether—to rebuild.

Deserai Anderson Crow, who researches community resilience at the University of Colorado - Boulder, states that what is occurring in St. Louis follows a pattern similar to other extreme - weather disasters: Those who rebuild are more often landlords seeking renters rather than people intending to live in the homes they're rebuilding.

“It's a predatory renting cycle,” Crow said. “These large industrial - rental landlords aim to snap up disaster - affected homes because they correctly assume that many people want to escape their mortgages as quickly as possible and lack the emotional or financial capacity to handle rebuilding.”

Bobbie White's damaged home was constructed in 1901, when St. Louis was a prosperous Mississippi River transit hub. One of the industries that built St. Louis was brick - making, with the materials renowned worldwide for their strength and quality. Bobbie's home and others on her block are made of these bricks. “A lot of these houses are 100 - year - old structures,” DeAmon said. What is likely to be built in their place will probably be less unique or sturdy and yet cost far more, he lamented—prices beyond the reach of many in the neighborhood today.

Challenges Faced by Homeowners and the Role of Realtors

Stacey Sanders, president of the St. Louis Association of Realtors, reports being inundated with reports of rapid post - disaster sale offers. However, these often come with red flags: For instance, multigenerational homes may lack access to a title, or the title may be in the name of a deceased family member. Resolving title issues can sometimes take years.

Many of the storm - impacted multigenerational homes fall into this legal category. These “heirs’ property” homeowners are in a bind, Sanders said. Without a title, accessing FEMA benefits is more difficult, filing an insurance claim is extremely challenging, and sales without a title are, at best, legally suspect.

When Sanders' own home and car were hit by a tornado in March, “we had letters, door hangers, people knocking on the door, doing everything.” They were either selling her on repairs or on a home purchase. As a professional real - estate agent, she was able to access resources and restore her damaged property. However, she worries that others may have a harder time.

“It might be the easiest and quickest way,” Sanders said, “but it's not always the best approach.”

“A lot of the people making these offers on houses are not doing it out of altruism,” she said. “Instead, they see ‘desperate people’ and seize the opportunity to buy property for far less than its worth.”

Potential Solutions to Curb Mass Sell - Off

There are options to halt this mass sell - off. One strategy, according to Crow of the University of Colorado, is to provide a few months of bridge funding so residents can stay and manage the rebuilding process. Another is to impede buyers: This June, the Ohio Senate passed a bill requiring real - estate wholesalers to inform homeowners when they may be selling their homes below market value. Pennsylvania passed a similar law in January. However, the Missouri market remains unregulated at both the local and state levels, according to attorney Peter Hoffman of Legal Services of Eastern Missouri, a nonprofit providing pro - bono services to tornado victims.

“They target people in vulnerable situations who may not have equal access to information,” Hoffman said. These issues—redlining, displacement, exploitation—existed before the tornado. But the storm, he said, brought them to the surface.

DeAmon White's Reflection

Speaking on the phone between orders of fish, fried okra, and potato salad at his restaurant, Ozell's Kitchen and Food Mart, DeAmon White reflected on the past few months. Rebuilding his home has been arduous. Although he has insurance, he anticipates his home won't be habitable until February or March, nearly a year after the tornado. Due to his disability, with a partially amputated foot, he mainly stays on the first floor of his mother's house. A neighbor is still living in a camper on her lot. Others, he said, accepted offers to sell. Currently, only four families remain on his block. On August 21, White said, his mother received an offer in the mail: A man named Chris wanted to buy her home for about two - thirds of its value.

“I sincerely hope that those facing the threat of gentrification recognize the value of what they have and, if possible, refrain from selling out,” White said. “I understand that money holds sway, and when in a stressful situation, one must do what they feel they have to, but resist, if you can.”