Rising Storm Risks, Insurance Costs Drive Home Values Down and Residents Out, Report Finds

Storm-damaged home values and crushing home insurance costs aren’t just a Florida problem, according to a new report from Cotality, a data company formerly known as CoreLogic.

“Communities from Port Isabel, Texas, to Bar Harbor, Maine, are faced with flood and wind risk that threaten wealth and security,” Cotality’s report says. “With hurricane risk intensifying and [home insurance] coverage retreating, the question isn’t if other communities will feel the effects — it’s where.”

The double-whammy of high storm risks and costly home insurance is reshaping coastal communities, Cotality says. And it’s already affecting housing markets in places like Virginia Beach, Virginia; Wilmington, North Carolina; and Charleston, South Carolina.

Florida migration patterns may be a sign of what’s to come for other coastal communities.

More than 500,000 Floridians moved away from the state’s coastal cities inland to cheaper markets like Tampa, Jacksonville, and even Orlando. And nearly half of mortgage applications from people leaving Florida are for homes in states with lower housing costs and less risk of natural disaster, the report says.

Storm risks erode home values and affordability

In all, 6.4 million homes, with a total reconstruction cost value (RCV) of $2.2 trillion face moderate to severe risk from storm-surge flooding, the company found. And more than 33.1 million homes, with an RCV of $11.7 trillion, face at least moderate risk of damage from hurricane-force winds.

Some of those homes are in areas that are already seeing property values decline and homes lingering on the market. 

But these scenarios still aren’t benefiting buyers. In many cases, the high cost of home insurance offsets any price savings buyers might find. It may also lock out many home buyers altogether. 

“Rising insurance costs are reshaping who can afford coastal homes, with young and middle-income buyers often priced out due to high insurance premiums that can push monthly costs beyond affordability,” Cotality notes.

Rising flood risks wash away value for sellers and buyers

Escalating storm-damage risks are directly affecting home values, sellers’ ability to sell, and buyers’ ability to buy.

Cotality’s data crunching found properties in Miami’s 100-year flood zone saw values fall by 9% to 18% per square foot. Meanwhile, homes for sale in Virginia Beach have lingered on the market 32% longer so far in 2025 than they did in 2024. In Wilmington, homes are remaining on the market 19% longer.

“Shrinking buyer pools mean homes sit longer, prices fall, and neighborhoods change,” Cotality notes. In such markets, second-home owners and investors may be the only viable buyers. “In extreme cases, too many vacant homes can discourage investment and future buyers, precipitating a decline in property values that erodes equity and generational wealth.”

What’s next: Building storm resilience is key

People moving out of high-cost, high-risk areas like Miami and other Florida coastal communities may be buying into trouble if the property they choose isn’t fortified to withstand weather disasters.

In September 2024, Hurricane Helene demonstrated that areas once deemed “safe” from severe weather damage are no longer as low-risk as they seem. Although the Carolinas’ coastal and low-lying regions face high risks from hurricanes, Helene’s devastating effect on western North Carolina took many by surprise.

“When homeowners underestimate risk, they’re less likely to invest in resilience,” Howard Botts, Cotality’s chief scientist, said in the report. “That’s a serious problem in places where [building] codes haven’t caught up to environmental realities.”

But communities can overcome storm risk and its threat to home values, Cotality’s report says.

“Resilience has proven key to shielding communities in hurricane-prone areas. … Cities can make smarter choices with the right data and planning,” the report notes. “Urban planners increasingly rely on flood risk scores to guide zoning decisions, shape public investment, and inform infrastructure design.”

“Incorporating risk into development isn’t just smart policy — it’s a necessary step to protect lives, stabilize communities, and safeguard long-term economic prosperity.”

Related articles