CoreLogic: 7.8 Million U.S. Properties at Risk of Hurricane-Force Wind, Storm Surge Damage
CoreLogic, Irvine, Calif., said its risk modeling shows nearly 7.8 million homes with more than $2.3 trillion in combined reconstruction cost value are at risk of hurricane-related damages.
The company’s 2022 Hurricane Report, which analyzes hurricane and storm surge and wind risk exposure for single-family residences and multifamily residences along the U.S. Gulf and Atlantic Coasts, also said nearly 33 million homes with nearly $10.5 trillion in combined RCV are at risk of hurricane-force wind damages
“This hurricane season could be particularly severe for the U.S. Gulf Coast due to warmer-than-average Atlantic Ocean temperatures, an ongoing La Niña, and a stronger than average loop current in the Gulf of Mexico,” said Daniel Betten, Chief Meteorologist with CoreLogic. “Although La Nina events typically occur once every three years, this fall will likely be the fifth La Nina event over the last seven years.”
The National Oceanic and Atmospheric Administration forecasts an above-normal 2022 hurricane season with as many as 21 named storms and up to 10 hurricanes, of which up to six could be major hurricanes.
The report noted these storms take a toll on the U.S. housing economy with noticeable spikes in mortgage delinquency rates and loss in housing inventory. After Hurricane Ida made landfall in August 2021, 30-day mortgage delinquencies in Houma, La., rose from 1% to 7%. The Houma economy had already been hurt in the early months of the pandemic by a drop in oil prices. With the additional strain of Hurricane Ida, home prices recovered slowly, and rents weakened as workers and families relocated to other areas.
CoreLogic examined the top 15 metropolitan areas and states with the greatest number of properties at risk for storm surge and wind damage. It found the New York City metro area has the greatest risk, with nearly 900,000 homes with more than $432 billion in RCV at risk of storm surge damage and more than four million homes with more than $2.2 trillion in RCV at risk of wind damage. The Miami metro area follows, with nearly 770,000 homes with nearly $193 billion in RCV at risk of storm surge damage and more than two million homes with more than $500 billion in RCV at risk of wind damage.
At the state level, Florida, Louisiana and Texas have the greatest number of homes at risk of storm surge damage with more than three million; nearly 911,000; and more than 542,000 homes at risk, respectively. Texas tops the list for hurricane wind risk with more than 8.8 million homes at risk.
