Cotality: Hurricane Risk Distorting Property Markets in Unexpected Places

(Illustrations: Cotality)

More than 33 million homes across the United States face hurricane wind risk–including many in areas that are not fully prepared to weather the storms–a new report from Cotality finds.

In its 2025 Hurricane Risk Report, Cotality examined the growing financial and social costs of increasing hurricane risk, including areas of the U.S. that are not as prepared to weather the storms.

“Homeowners in seemingly stable markets are facing unexpected challenges: diminishing property values, and difficulties selling their homes. Not because of location, but because of insurance availability and cost,” the report said.

Nationally, Cotality identified more than 33.1 million residential properties spanning from Texas to Maine with a combined reconstruction cost value of $11.7 trillion that are 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 reconstruction cost value 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 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.”

While each hurricane season is different, on average, two hurricanes make direct landfall each year