In the aftermath of Hurricane Helene—with the death toll at at least 133 and expected to rise—extreme weather events and natural disasters are on many people’s minds.
However, in recent years, record numbers of Americans have been relocating to hazard-prone areas—exacerbating both the severity and costs of natural disasters, according to a New York Times report released this week.
In fact, analysis by Realtor.com has found that 44.8% of homes in the US valued at nearing $22.0 trillion are vulnerable to at least one type of severe climate risk including flood, wind, wildfire, heat, and air quality.
Real estate agents confirm that many homebuyers just don’t take climate issues all that seriously when deciding where to live.
“Most people are low-information homebuyers,” says real estate professional and attorney Bruce Ailion, of Re/Max Town & Country in Atlanta. “They do not seek out and are not provided information regarding the climate risks.”
Even if they did have the information, that wouldn’t necessarily stop them.
“I’m not sure people would not buy if they were fully aware of the risks,” Ailion continues. “It doesn’t seem to sink in until after disaster hits, and then, most choose to rebuild in the same spot.”
Check out six states the New York Times found are still gaining residents despite being potential extreme-weather danger zones.
High-risk zone: Florida
Since 2000, more than a dozen hurricanes have made landfall in Florida—and in the past 13 months alone, three major hurricanes have hit the state, causing billions of dollars in damage.
Even so, Florida gained more than 3 million new residents between 2000 and 2023.
“Buyers want to live where they want to live,” says Jeff Lichtenstein, of Echo Fine Properties in Palm Beach Gardens, FL. “It’s why the coasts are so filled with people no matter where in the world. We like warm weather and water.”
The type of buyer moving to coastal or oceanfront properties still feels there is more reward versus risk, according to real estate agent Nicole Mickle, of Olympus Executive Realty in Orlando, FL.
“Hurricane season is only a few months a year,” she says. “The Florida lifestyle and tax benefits seem to be more important to most buyers.”
However, a growing number of buyers are taking the risks more seriously and starting to weigh the rising costs.
“I do believe deciding where to live based on natural disasters will increasingly become a factor, and it already has,” says Cara Ameer, a real estate agent with Coldwell Banker in Florida and California. “Unless you have unlimited resources and can afford to self-insure, you may not feel comfortable owning real estate in an area prone to extreme weather events, because they are becoming more common.”
That’s definitely been the case for Atlanta-based Ailion, who says, “I grew up in Ft. Lauderdale and would love a condo on the beach,” he says. “Rising climate risks, taxes, and insurance have prevented me from purchasing.”
Speaking of insurance, Farmers Insurance announced last summer that it wouldn’t be offering any home, auto, or umbrella policies in the state of Florida. Progressive and AAA are also reducing their coverage in the area, which could stymie buyers.
High-risk zone: Arizona
Phoenix is one of the country’s fastest-growing cities—even though it experienced 100 days in a row with temperatures above 100 degrees Fahrenheit this year.
“That hasn’t impacted our market, [because] environmental factors aren’t high on most buyers’ lists of concerns,” says real estate agent Cory Pinter, of Inherited House Guide.
Pinter informs clients about possible climate risks, but ultimately buyers make their own decisions.
Phoenix real estate agent Stacy Miller, of Re/Max Fine Properties says many folks moving to Arizona simply prefer the heat there over snow and ice elsewhere.
The extensive use of air conditioners has also supported Americans moving toward the South, according to theNew York Times.
“For me, personally, moving from Texas to Arizona was an easy choice, because nine months out of the year, it’s glorious,” Miller says.
High-risk zone: California
California has been plagued by wildfires, landslides, and earthquakes—but it’s still seen a large influx of new residents.
“I’ve had clients move to areas where there is high fire risk solely for the fact that it fits their lifestyle, and they’ll be closer to their friends,” says Sam Fitz-Simon, a real estate agent with Compass in Danville, CA.
State Farm halted the sale of insurance for new homes in the state last summer and is pursuing rate increases of up to 52% for certain residential policies. Farmers Insurance, Allstate, USAA and the Hartford have previously declared a pause on issuing new policies to homeowners in California.
“As insurance becomes increasingly unaffordable in many states, it will become a serious issue,” predicts Jameson Tyler Drew, president of Anubis Properties in the Los Angeles area. “When many insurance carriers up and left California entirely in recent years, it left little competition in the market. And if you live in places like Paradise, CA—which was completely destroyed by wildfires—good luck finding any insurance carrier.”
That’s because most home insurance companies will automatically cancel your new application if your home had its insurance pulled at any point.
“Many homeowners who lost their policies due to high fire or flood risks are now stuck with homes they cannot sell to most people,” Drew says. “This is currently an issue in Palos Verdes, where a large swath of homes is currently falling into the ocean due to landslides.”
But even though these insurance issues are indeed increasing, as long as people continue “California dreaming,” they will still want to move to the Golden State, regardless.
High-risk zone: Texas
Texas has attracted millions of people from across the country despite being at high risk for extreme weather events—hurricanes in Houston, tornadoes and hailstorms in Dallas-Fort Worth, and wildfires in Austin.
Natural disasters don’t impact homebuyers’ decisions much in the Dallas area, according to real estate agent Paige Elliott, of Elliott & Elliott Real Estate Group of Dallas, TX.
“Instead, quality of life, cost of living, and our location midway between the coasts continue to be the driving factors,” Elliott says.
Extreme weather events in Texas “including 10 tornadoes one night a few years back, and spring and fall windstorms” are “frustrating, yes—but most are not moving away yet,” she says.
As for rising homeowners’ insurance premiums, Elliott says they’re a concern for homebuyers across the entire state.
“We are suggesting homebuyers confirm insurance during the option period, so they minimize surprises due to high costs or no coverage available,” she explains.
High-risk zone: The Carolinas
Asheville, NC, was especially hard hit by Hurricane Helene. And according to the South Carolina Emergency Management Division, South Carolina is one of the most vulnerable states in the nation to be impacted by hurricanes and tropical storms.
Despite these risks, the Carolinas added 2.5 million citizens from 2000 to 2023.
“Many buyers weigh the risks against the benefits of living in an otherwise beautiful location,” says Elyse Sarnecky, director of marketing of Marketplace Homes, which has a strong presence in the Carolinas. “The high insurance rates due to extreme weather are not always a deal breaker.”
However, natural disasters are more likely to play a role in homebuyers’ decisions when they are considering either relocating to or from an area that has been affected by events such as hurricanes, wildfires, or flooding, Sarnecky says.
“These buyers tend to be a bit more cautious and will often ask about the disaster history of a region or particular property,” she explains.
According to Sarnecky, real estate investors are growing more wary of buying in high-risk hotspots.
“We’ve helped several customers replace an investment home in a higher-risk geographic location with a similar property in the Midwest, where insurance premiums are lower and there is a significantly lower risk of extreme weather through a 1031 exchange,” says Sarnecky.
Vacation homes are also being affected.
“We’re seeing a record number of owners contacting us to inquire about selling their coastal second properties,” explains Sarnecky. “That’s often due to issues directly tied to extreme weather and natural disasters.”