Residents of a flooded beach front neighbourhood on the outskirts of New York city returned home on Wednesday to find fire had taken everything the water had not.

A huge blaze destroyed 80 to 100 homes in the close-knit community of Breezy Point in Queens.

Officials said the fire was reported late on Monday night, after superstorm Sandy began sweeping through the region.

"Things like this happen in Missouri, they happen in California, they don't happen here, this is not supposed to happen here, it's terrible," said Art Tully whose house was completely destroyed by the fire.

"It's people's lives and homes that are gone and it's going to take a long time to bring them back."

Residents were trying to salvage whatever they could find on Wednesday.

"It's just complete devastation and you know my parents have lived here for 40 years and it's unbelievable," said a woman, too grief-stricken to give her name.

"I don't even know what to think. I don't even have words to describe it," said another victim, Brendan McDerby, who lost his family home.

"It's absolutely insane. It's just the most terrible thing I've ever seen."

Melted bicycles, charred dolls, blackened chairs from happier times were scattered around amidst destruction with small pockets of fire still burning.

Amidst the wreckage, Tom Duffy pulled what remained of the family photo albums.

Some of the photos look like they could be saved.

"It's the only thing we've been able to salvage up to now. We'll just have to figure out where do we go from here," he said.