A little more than one in four homes in the U.S., representing $12.7 trillion in real estate value, are exposed to severe or extreme climate risks, according to a recent Realtor.com report.

“Climate risks are no longer a distant threat for U.S. housing—they are a present reality that puts a large chunk of U.S. 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.”

The report utilized digital insurance agency Insurify.com data to highlight how flood, hurricane wind, and wildfire threats impact housing markets, homeowner costs and insurance availability nationwide.

Nearly six million homes, valued at $3.4 trillion, are likely to experience severe or extreme flooding over the next 30 years, according to First Street’s Flood Factor score data available on Realtor.com. The figure is about two million higher than the number of homes located in FEMA’s Special Flood Hazard Areas (SFHAs), largely because FEMA’s maps do not fully reflect heavy rainfall or the effects of climate change, the report stated.

Within the 100 largest metros, New York, Los Angeles and San Francisco are the top metros where the biggest gap in dollar terms is seen between homes in FEMA SFHAs and homes facing severe or extreme flood risk—by $95.3 billion (New York), $65.6 billion (Los Angeles), and $54.9 billion (San Francisco).

By gap in share of market value, New Orleans leads the nation with 66 percentage points of its housing stock at severe or extreme flood risk but not identified by FEMA SFHAs, followed by Palm Bay, Fla., at 15 percentage points and Chattanooga, Tenn., at 11 percentage points.

Coastal markets dominate the list of metro areas with the greatest dollar value and share of dollar value exposed to severe or extreme flood risk.

Table 1 A: Metro Ranked by Total Value of Homes With Severe or Extreme Flood Risk (Flood Factor Score>=7)

Table 1 B: Metro Ranked by Share of Value of Homes With Severe or Extreme Flood Risk (Flood Factor Score>=7)

Wind risk from hurricanes places entire markets at stake.

In 2025, approximately 18.3 percent of homes in the United States, valued at nearly $8.0 trillion, face severe or extreme risk of wind damage, according to First Street’s Wind Factor score data found on Realtor.com.

In fourteen major metros across Louisiana, Florida, South Carolina and Texas—including Miami, Houston, Tampa and New Orleans—every home is exposed to severe or extreme risk of wind damage.

Because these risks frequently overlap with flood exposure, homeowners in coastal markets face compounded threats, the report warned. Financially, the burden is amplified by high hurricane deductibles; in many states, homeowners with a $400,000 policy may need to cover as much as $20,000 in damage before insurance kicks in.

Table 2 A: Metro Ranked by Total Value at Severe or Extreme Wind Risk (Wind Factor Score>=7)

Table 2 B: Metros where All Homes Face Severe or Extreme Wind Risk (Wind Factor Score >=7)

Wildfire exposure, while geographically concentrated according to the report, represents a significant and growing challenge.

In 2025, 5.6 percent of homes, worth $3.2 trillion, face severe or extreme wildfire risk, according to First Street Fire Factor score data.

California accounts for nearly 40 percent of this total, or $1.8 trillion in property value, with Los Angeles and Riverside among the most exposed metros.

The state’s insurance market is under severe stress, with California’s FAIR Plan, designed as a last-resort option, having grown to $650 billion in total exposure, up 289 percent since 2021.

Outside California, wildfire risk is also acute in western metro areas such as Colorado Springs, where more than three-quarters of home value is vulnerable, and Tucson, where 60 percent of housing stock faces high fire danger.

With rising risk comes a financial strain on homeowners.

In Miami, for single-family homeowners under an HO-3 policy, the most common type of homeowners insurance policy in the U.S., the typical homeowner now pays annual premiums equal to 3.7 percent of the home’s market value—the highest ratio among the nation’s 100 largest metros.

New Orleans follows closely at 3.6 percent, with Cape Coral, Florida, at 2.2 percent.

Florida cities dominate the list of expensive insurance markets, with Tampa, Palm Bay and North Port all ranking among the top 10.

Even with the rising costs, structural gaps in coverage remain. Flood insurance is typically sold separately, hurricane deductibles are significantly higher than standard policies, and wildfire coverage in many regions is either limited or unaffordable, the report noted.

“Climate risk and insurance are not usually a top consideration for home shoppers balancing budgets against still-high home prices and mortgage rates, but these factors already shape ongoing housing costs and affordability, and increasingly whether they can secure affordable insurance coverage,” said Hale. “While the types of risk vary by region—flooding in the Northeast, wildfires in the West, and hurricanes in the South—the financial consequences are increasingly national in scope.”

Table 3: Markets with the Highest Insurance Burden