Trillions of dollars’ worth of real estate is at major risk of damage from flood, fire or extreme wind, a new analysis finds.
According to Zillow, homes in the United States with major wind risk are worth at least $17 trillion in total, equivalent to more than half of the U.S. GDP. Homes with major fire risk are valued at $9.1 trillion, and homes with major flood risk are worth a cumulative $7 trillion.
“The risk of natural disasters and rising insurance costs are profoundly reshaping the housing market. Home buyers are paying attention,” said Kara Ng, a senior economist at Zillow. “With trillions of dollars in real estate vulnerable to these risks, informed decision-making for what is the biggest purchase of many buyers’ lives has never been more critical.”
Eleven major metro areas have at least $100 billion of residential real estate with a major risk of fire, including four in Texas– Dallas ($230.9 billion), Houston ($55.8 billion), San Antonio ($71.7 billion) and Austin ($77.7 billion). The total value of homes with major flood risk in these areas are as follows: Dallas – $60.9 billion; Houston – $261.4 billion; San Antonio – $25.4 billion; and Austin – $30.2 billion.
The Los Angeles metro has the highest total value of homes at major risk of fire, at $831 billion.
The New York City metro area stands above all other major markets with the highest total value of homes at major risk of flood and extreme wind. For flood risk, the total value of homes at risk in New York ($593 billion) edges out Miami ($580 billion), while no other major metro exceeds $300 billion at risk. New York homes with major wind risk total roughly $3 trillion in value, with the value of Miami and Boston homes at risk also exceeding $1 trillion.
More than 80% of home shoppers consider climate risks when looking for a new home, according to Zillow.
