American Buyers Are Flocking To Regions With High Climate Risk For Homes

Americans are paying top dollar to live in areas prone to devastating environmental disasters, with home prices soaring in these locations. A new report from real estate publication Home Bay found that home prices are increasing at a higher rate than the national median in the areas most impacted by climate change. Home sales prices are up 167% in metros within states that have had at least 50 Federal Emergency Management Agency (FEMA) disaster declarations since 2012. By comparison, the national median increase is only 113%. FEMA ranks California, Texas, Florida, Louisiana, and North Carolina as the states with the highest risk for homeowners– that is, the states that are most likely to have disasters that threaten buildings, people, and…

Natural Disasters Caused $56B In Property Damage In 2021

More than 14.5 million single- and multifamily homes were impacted by natural disasters in 2021, causing an estimated $56.92 billion in property damage, according to CoreLogic’s 2021 Climate Change Catastrophe report. The report analyzed thirteen “major hazard events” of 2021– including hurricanes, tornados, wildfires, and winter storms– and 120 million residential structures in the U.S. The findings show significant damage to residential properties and increased economic instability in impacted areas. For example, damage from Hurricane Ida in Houma, Louisiana, resulted in delinquency rates rising from 7.4% before the storm to 13.3% the following month. “By leveraging granular data for the increasing frequency and severity of catastrophes, we are able to see that more than 14.5 million homes were impacted to…

SitusAMC: Insurance Premium Hikes Coming As Natural Disasters Intensify

Both homeowners and lenders may be underestimating the rising cost of insurance following a growing number of natural disasters, according to a SitusAMC white paper titled “Weathering the Storm: Burgeoning Insurance Costs for Real Estate.” The paper found that natural disasters have impacted residential property nationwide, not just in areas with highly publicized disasters such as California and Florida. The states with the most natural disasters were Texas (where winter storms accounted for 40% in total insurance market losses in 2021), Virginia, and South Dakota. As the number of disasters rises and their severity intensifies, insurance companies will face more risk, leading to higher insurance premiums and reductions in coverage for property owners. “The growing number of climate events has…

Homebuyers Increasingly Worried About Natural Disasters

More than half of respondents to a Realtor.com survey said they considered natural disasters when deciding where to live. Millennials and Gen Z were particularly wary of potential disasters when choosing a home. Disaster fears have grown over the last five years, with 47% of homeowners becoming more concerned over time. Of current homeowners, 62% expressed fears about the threat of natural disasters to their homes. The most concerned demographics were recent buyers, Millennials, Gen X, and urban homeowners. These groups also reported the most growth in their fears over the last five years. Baby Boomers, the Silent Generation, and rural homeowners weren’t as worried overall; half said they weren’t concerned at all. More than half of Millennial and Gen…