U.S. cities where homes are most at risk from hurricanes and other storm damage

As the country enters the hurricane season from June 1 to late November, homes in New York and Miami are at the greatest risk of property damage, according to a report released Wednesday by real estate research firm CoreLogic. .

Overall, more than 33 million homes in the United States are at risk of hurricane damage, according to CoreLogic’s annual report, which analyzed the impact of hurricanes, storm surges, and wind risk exposure, for homes. single-family and multi-family. along the Gulf and Atlantic coasts.

The report warned that property damage this season could be particularly bad in these specific areas:

Homes in the New York City metropolitan area are likely to suffer the most damage, with 900,000 homes at risk of storm damage and more than four million homes at risk of wind damage, according to CoreLogic. .

“You have a concentration of risk,” Tom Larsen, director of industry solutions at CoreLogic, told MarketWatch.

‘We remember the superstorm Sandy from a few years ago which caused significant losses.’

— Tom Larsen, Director of Industry Solutions at CoreLogic

In New York, there is “a lot of value,” he explained. From a high population concentrated in a small area, to a concentration of wealthy homes in one place, in addition to coastal exposure, there’s a lot that makes New York City vulnerable, Larsen said.

“We remember the superstorm Sandy from a few years ago that caused significant losses even though it wasn’t a hurricane,” Larsen added.

Sandy caused approximately $19 billion in damage and lost economic activity in New York, according to the city. More than 69,000 residential units were damaged and thousands of New Yorkers were displaced.

The total cost of rebuilding in the event of a hurricane is high. CoreLogic expects the rebuild cost figure to be nearly $433 billion for homes suffering storm damage and more than $2.2 trillion for wind damage.

Homes in Miami rank second when it comes to highest risk of damage, with 770,000 homes at risk of storm damage and a further two million homes at risk of wind damage. Homes that suffer damage from storms would be at risk for nearly $193 billion worth of rebuilding cost, while homes hit by hurricane winds would cost $521 billion.

When it comes to the states likely to suffer the most damage from hurricanes, Florida, Louisiana and Texas top the list.

If you are a home owner, due to hurricane risks, “make sure you have adequate insurance,” Larsen emphasized. “It’s a big, big financial expense” if you can’t go home due to inadequate insurance, he said.

More than 31 million single-family homes and a further 1 million multi-unit buildings were at moderate or greater risk of hurricane damage.


‘Financial trauma’ for owners

More than 31 million single-family homes and a further 1 million homes in multi-unit buildings were at moderate or greater risk from a hurricane’s damaging winds, according to the report.

More than 7.5 million of these homes had direct or indirect exposure to the coast and therefore risk from coastal storms and hurricane damage.

Property damage caused by hurricanes incurs significant financial losses for homeowners.

“Many homeowners have suffered ongoing financial trauma,” the CoreLogic report stated. For example, after Hurricane Ida evolved into a Category 4 storm before hitting Louisiana and flooding many homes, many homeowners were very late on their mortgage payments.

The percentage of homeowners who are at least three months late in payments in the city of Houma, Louisiana, has increased by 50%. Six months later, the severe default rate was still above the state average.

Climate change is one of the main factors making storms more intense and far-reaching.

‘Particularly severe’ hurricane season ahead

And if you thought 2021 was bad, get ready for a tumultuous 2022, the report said.

Last year, the Atlantic hurricane season was the third most active on record. There were 21 named storms that caused $80 billion in damage, which turned out to be the third most expensive on record. The 2005 and 2017 hurricane seasons caused more damage.

“This hurricane season could be particularly severe for the U.S. Gulf Coast due to warmer-than-average temperatures in the Atlantic Ocean, a continuous La Niña and a stronger-than-average loop current in the Gulf of Mexico.” Daniel Betten, chief meteorologist at CoreLogic, said in a press release.

“While La Nina events normally take place once every three years, this fall will likely be the fifth La Nina event in the last seven years.”

Write to MarketWatch reporter Aarthi Swaminathan: aarthi@marketwatch.com

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