BAM Key Details:

  • According to the 2024 Realtor.com Housing and Climate Risk Report, nearly 44.8% of all U.S. homes face at least one type of extreme climate risk—flood, wind, wildfire, heat, or poor air quality. 
  • About two in five U.S. homes (40.4%), valued at $19.7 trillion, face severe or extreme risk related to heat, wind, and air quality. 

Roughly two out of five homes in the U.S. face severe or extreme climate risk related to one or more of the usual suspects:

  • Flood
  • Wildfire 
  • Heat
  • Wind damage
  • Poor air quality

That’s according to the 2024 Realtor.com Housing and Climate Risk Report released on March 13th. 

The three goals of this research, as outlined by Realtor.com:

  1. Identify markets with the highest total value of homes facing a high level of climate risk
  2. Identify markets with the highest share of home value at high risk
  3. Understand the primary concerns of both current homeowners and potential buyers when considering markets with high climate risk

The third goal is crucial because climate risk endangers not only the safety of those living in at-risk homes but also impacts their property values, homeowners’ insurance costs, and overall market stability. 

With that in mind, Realtor.com has launched property-specific information on wind, heat, and air quality risk, complementing the website’s existing flood and wildfire risk index. 

The total value of U.S. homes is estimated at $43.1 trillion, based on the most recent Automated Valuation Model (AVM) home value estimates from Realtor.com data providers. 

Using that figure—which includes single-family homes, condos, townhomes, rowhomes, and co-ops—Realtor.com matched up Flood Factor scores, Wind Factor scores, Fire Factor scores, Heat Factor scores, and Air Factor scores from First Street Foundation to calculate the total value of homes facing severe or extreme risk from one or more of the climate risk factors (i.e., those with a factor score equal to or above seven for at least one climate risk factor). 

The results of that analysis: 

  • 44.8% of U.S. homes—valued at $22.0 trillion—face at least one type of severe or extreme climate risk from flood, wildfire, wind, heat, or air quality
  • 40.4% of homesvalued at $19.7 trillion—are at severe or extreme risk specifically related to heat, wind, and air quality 

Read on for the highlights on each specific climate risk. 

Flood Risk

According to Realtor.com’s analysis, about 6.6% of U.S. homes, valued at nearly $3.4 trillion, face severe or extreme risk of flood damage—i.e., a Flood Factor score of seven or higher. 

Among U.S. metros with the highest total value of homes at that level of risk, Miami, FL, tops the list, while New Orleans, LA, leads metros in terms of the share of total property value at risk. 

As the cost of flood damage increases, homeowners enrolled in the National Flood Insurance Program (NFIP), the main provider of flood insurance in the U.S., could see an average premium increase of 103% over the next four to five years. 

Table-1a-total-value-of-homes-facing-high-flood-risk
Table-1b-Share-of-home-values-with-high-flood-risk-Realtor-dot-com

Source: Realtor.com

Wind/Hurricane Damage

In 2024, about 18.1% of U.S. homes—valued at nearly $7.7 trillion—face severe or extreme risk of wind damage, including risk from hurricanes and tornadoes. 

Among U.S. metros with the highest total value of homes at that level of risk, Miami, FL, again ranks at the top, while a large share of homes across 15 major metros in Louisiana, South Carolina, Florida, and Texas face severe or extreme wind risks. 

Eighteen states plus D.C. require additional hurricane deductibles, raising the cost of recovery from wind-related property damage. 

Table-2a-Total-value-of-homes-at-high-wind-risk-Realtor-dot-com
Table-2b-Metros-with-ALL-homes-at-high-wind-risk-Realtor-dot-com

Source: Realtor.com

Wildfire Risk

This year, roughly 5.5% of U.S. homes—valued at $3.0 trillion—face severe or extreme risk of property damage from wildfires. Nearly 39.1% of those high-risk homes (valued at $1.7 trillion) are in California. 

Los Angeles, CA, tops the list of U.S. metros with the highest total value of homes at high risk of fire damage, while Colorado Springs, CO, has the highest share of total property value at risk. 

With the growing exodus of insurance companies from wildfire-prone California, many high-risk homeowners have been left without affordable fire insurance policies to protect their investment. 

Table-3a-Total-value-of-homes-with-high-fire-risk-Realtor-cot-com
Table-3b-Share-of-value-at-high-risk-of-wildfire-Realtor-dot-com

Source: Realtor.com

Extreme Heat Risk

About 32.5% of U.S. homes—valued at nearly $13.6 trillion—face severe or extreme risk of high heat exposure. 

Once again, Miami, FL, leads metros with the highest total value of homes at this level of risk, while homes in 17 metros across Florida, Texas, South Carolina, Louisiana, and Virginia ALL face severe or extreme heat risk. 

Homeowners in these markets could see additional or rising costs for HVAC and energy-efficient system improvements. 

Table-4a-Total-value-at-high-heat-risk-Realtor-dot-com
Table-4b-Metros-with-ALL-homes-at-high-heat-risk-Realtor-dot-com

Source: Realtor.com

Air quality risk

About 9.0% of U.S. homes—valued at nearly $6.6 trillion—face severe or extreme risk of poor air quality

San Francisco, CA, leads metros with the highest total value of homes at this level of air quality risk, while homes in four metros from California and Washington are all at severe or extreme risk of poor air quality. 

That said, many homebuyers seem willing to take on air quality risk in exchange for more affordable housing. 

Table-5a-Total-value-of-homes-at-high-air-quality-risk-Realtor-dot-com
Table-5b-Metros-with-all-homes-at-high-air-quality-risk-Realtor-dot-com

Source: Realtor.com

Read the full report for more information, including methodology.