National Institute of Building Sciences research found that every $1 invested in disaster mitigation saves $6 in future losses. Building to modern code standards adds approximately 1% to construction costs relative to 1990 standards but returns $11 for every dollar spent. For developer Robert Balzebre, who builds across Miami, Los Angeles, and New Orleans, these numbers reflect the math behind a construction approach he has applied throughout his career.
“Well, honestly, the minimum code requirement is not enough,” Robert Balzebre said. “It’s the writing’s on the wall. You see it when you look at all these different disasters that happen.”
What Data Reveals About Code Compliance and Survival
A Camp Fire research study published in Fire Ecology examined home survival rates in Paradise, California. Homes built before 1997 had a 11.5% survival rate. Properties constructed after 1997 survived at 38.5%, more than triple the rate of older construction.
National Bureau of Economic Research data showed 43% fewer California homes were destroyed when built to wildfire-resistant standards. Boulder County, Colorado, documented even more dramatic results following the 2010 Fourmile Canyon Fire. Properties built in the prior decade through a county program that required fire-resistant materials achieved 100% survival rates. Older homes survived at only 63%.
Hurricane data tells a similar story. FEMA’s case study of Hurricane Michael in 2018 documented how Mexico Beach homes built after Florida’s 2002 statewide code performed substantially better than pre-code construction. One beachfront property built to exceed code requirements survived with only minor repairs while surrounding older homes were destroyed.
Why Minimum Standards Fall Short
Building codes establish minimum thresholds designed to prevent catastrophic failure under typical conditions. Properties built to these floors satisfy permit requirements and pass inspections. They remain vulnerable to the increasingly severe storms and fires that drive insurance losses and reconstruction costs.
“Because when you build something that is likely to fail from one of these disasters, then you increase the cleanup costs, you have to rebuild again,” Robert Balzebre explained. “Sometimes that’s going to double all the costs that you just put out or more.”
Balzebre’s experience developing in three disaster-prone markets spans hurricanes in Miami, wildfires in Los Angeles, and flooding in New Orleans.
How the Economics Work Over Time
Developers evaluating construction decisions typically focus on immediate costs. Fire-rated materials, impact-resistant windows, and enhanced structural connections add to project budgets. The calculation changes when factoring in holding period expenses, insurance premiums, and potential reconstruction costs.
The Mexico Beach property that survived Hurricane Michael demonstrated this calculation. Exceeding code requirements added 15-20% to structural system costs, amounting to less than 10% of the overall project cost. That investment paid for itself through minimal post-hurricane repairs while neighboring properties required complete reconstruction.
Robert Balzebre applied this approach across his portfolio.
“So I am a true believer in doing things well for the art of doing them well and doing them right for the art of doing them right,” he said. “And that in the end is actually a money saver.”
What Above-Code Construction Actually Costs
Perceived expense remains the primary barrier to adopting enhanced building standards. Headwaters Economics research directly addressed this concern, finding negligible cost differences between typical homes and those constructed using wildfire-resistant materials and design features.
Specific upgrades and their approximate cost premiums include:
- Fire-resistant roofing modifications (sealed deck, enhanced attachment, ember-resistant vents) add roughly $5,860 or 27% to roof costs but provide 40-year protective lifetimes with reduced maintenance
- Impact-resistant windows cost 15-25% more than standard options but qualify for insurance discounts of 10-20% in many states while preventing the internal pressure failures that destroy homes during hurricanes
- Continuous load path connections linking foundation to walls to roof add $1,000-$3,000 to construction costs while preventing the progressive structural failures documented in post-disaster assessments
- ICF (Insulated Concrete Form) construction costs 15-20% more upfront but produces structures with 60+ year lifespans and documented survival in 200+ mph winds
Headwaters Economics concluded that wildfire-resistant roof modifications often cost less than rebuilding after a single fire event. Many resilient materials also carry longer lifespans and lower maintenance requirements than conventional alternatives.
Why Neighbors Matter as Much as Individual Properties
Fire Ecology research found that distance to the nearest destroyed structure was among the strongest predictors of home survival. Properties within 18 meters of a destroyed home faced substantially higher destruction risk regardless of their own construction quality.
This creates community-level dynamics that individual property decisions cannot address. One code-minimum home on a street can increase fire spread risk for every neighboring property built to higher standards.
Balzebre’s Hollywood Hills renovation incorporated fire-resistant construction years before California mandated similar standards statewide, including tempered glass, steel staircases, and sealed building envelopes.
Which Investments Deliver Highest Returns
FEMA research on benefit-cost ratios provides guidance on prioritizing improvements. Riverine flood mitigation measures return $7 for every $1 invested. Construction exceeding International Code Council standards delivers $4 in benefits for each dollar spent.
Developers conducting due diligence on projects in high-risk areas should evaluate:
- Local code vintage and how current requirements compare to the latest model codes, since many jurisdictions lag several code cycles behind
- Insurance carrier requirements that may exceed code minimums, as underwriters restrict coverage in disaster-prone zones
- Exit valuation impacts from buyers who increasingly factor insurability and resilience into purchase decisions
- Reconstruction cost comparisons between enhanced upfront investment and potential total loss scenarios
Resilient construction protects both individual investments and broader community interests. Colorado became one of only a handful of states to adopt statewide wildfire building codes in July 2025, following analysis showing homes built to these standards survive at dramatically higher rates.
The Gap Between Code and Reality
Building codes are updated on three-year cycles. Disasters don’t wait for committee schedules.
California adopted Chapter 7A wildfire standards in 2008. Seventeen years later, the January 2025 Los Angeles fires destroyed thousands of homes built before those standards existed. The code worked for properties constructed under it. The code couldn’t protect the vast housing stock that predated it.
This lag defines the challenge for developers working in disaster-prone markets. Codes reflect lessons from past events. Properties built today will face future events that codes haven’t yet anticipated.
“So I am a true believer in doing things well for the art of doing them well and doing them right for the art of doing them right,” Robert Balzebre said. “And that in the end is actually a money saver.”
The developers who treat code as a starting point rather than a finish line build projects designed for conditions that haven’t arrived yet. Their competitors build for yesterday’s disasters and hope tomorrow’s are no worse.
