Hurricane associated risks are distorting property markets in locations previously considered stable, not due to direct storm impact, but due to escalating insurance challenges, a recent report by Cotality has revealed.
The 2025 Hurricane Risk Report highlights that homeowners in these unexpected areas are dealing with a number of challenges, including diminishing property values, and difficulties selling their homes.
The core issue, Vitality analysts state, lies in the availability of insurance and cost, rather than on location.
In this report experts examine the growing financial and social costs of increasing hurricane risk, with special attention to areas of the US that are not as prepared to weather the storms.
Nationally, the report identified over 33.1 million residential properties, stretching from Texas to Maine, with a combined reconstruction cost value (RCV) of $11.7 trillion at moderate or greater risk of sustaining damage from hurricane-force winds.
Focusing on storm surge flood risk, Cotality identified more than 6.4 million residential properties with a combined RCV of $2.2 trillion at moderate or greater risk of sustaining damage from storm surge flooding.
“Our data shows that the coastline is evolving, with the impacts of hurricanes extending not only further — both in cost and distance — but also on a more consistent basis,” said Maiclaire Bolton-Smith, vice president of insurance product marketing at Cotality. “This is being reflected in insurance pricing, which in some cases can actually price people out of what had previously been thought of as less-risky markets.”
While each hurricane season is different, the report noted that on average, two hurricanes make direct landfall each year, underscoring the tangible risk on how long homes remain on the market.
For example, over 656,000 homes in Charleston, S.C., Wilmington, N.C., and Virginia Beach, VA are at risk of storm surge flooding if a hurricane makes direct landfall, according to the report.
Additionally, Cotality data shows homes in Virginia Beach, VA, remained on the market 32% longer in 2025 than in early 2024, while homes in Wilmington, NC remained on the market 19% longer during the same time period.
“While the challenges facing coastal real estate markets are serious, they are not insurmountable. Insurance premiums, lending decisions, property values, and real estate trends are all influenced by risk, but that also means they can be managed with the right information,” Bolton-Smith continued. “Insurability remains a challenge, but as technology continues to advance modeling capabilities, there is reason to be optimistic.”
The report also examined the impact of migration patterns on the Florida markets, using past hurricanes to demonstrate the need for accurate risk assessment and investment in resilience measures.
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