More than one in four homes (26%) representing $12.7 trillion in real estate value are exposed to severe or extreme climate risks, according to a new data report by Realtor.com.
The new reported nearly 6 million homes valued at $3.4 trillion are likely to experience severe or extreme flooding over the next 30 years, while 5.6% of all homes valued $3.2 trillion face severe or extreme wildfire risk and approximately 18.3% of homes valued at nearly $8 trillion, face severe or extreme risk of wind damage.
Rising insurance costs are exacerbating the financial strain on homeowners in high-risk areas – most notably in Miami where the typical homeowner now pays annual premiums equal to 3.7% of the home’s market value—the highest ratio among the nation’s 100 largest metros. New Orleans follows closely at 3.6% and Cape Coral, Florida, at 2.2%.
“Climate risks are no longer a distant threat for U.S. housing—they are a present reality that put a large chunk of US real estate value at risk,” said Danielle Hale, chief economist at Realtor.com. “In many markets, the gap between perceived risk and actual risk is sizable, particularly for flooding. This has significant consequences for homeowners, buyers, and insurers, and it underscores the need for readily available data to help households make informed decisions.”
