Record numbers of Americans are moving to disaster-prone areas despite the dangers

In the wake of Hurricane Helene – with the death toll at least 133 and expected to rise – extreme weather events and natural disasters are on many people’s minds.

In recent years, however, record numbers of Americans have moved into at-risk areas — exacerbating both the severity and costs of natural disasters, according to a New York Times report published this week.

In fact, analysis by Realtor.com found that 44.8% of US homes worth nearly $22.0 trillion are vulnerable to at least one type of severe climate hazard, including flood, wind, wildfires, heat and air quality.

Real estate agents confirm that many home buyers simply do not take climate issues seriously when deciding where to live.

“Most people are low-information home buyers,” says real estate professional and attorney Bruce Ailion, of Re/Max Town & Country in Atlanta. “They don’t ask for and aren’t given information about climate risks.”

Even if they had the information, it wouldn’t necessarily stop them.

“I’m not sure people will note buy if they were fully aware of the risks, Ailion continues. “It doesn’t seem to sink in until after disaster strikes, and then most choose to rebuild in the same place.”

Check out six states the New York Times found are still gaining residents despite being potential extreme weather hotspots.

High Risk Area: 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.

However, 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. “That’s why beaches are so crowded, no matter where in the world. We like the warm weather and the water.”

According to real estate agent Nicole Mickle, of Olympus Executive Realty in Orlando, FL, the type of buyer who moves to coastal or oceanfront properties still feels there is more reward versus risk.

“Hurricane season is only a few months out of the 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 are beginning to weigh the rising costs.

“I believe that deciding where to live based on natural disasters will become more and more of 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 self-insurance, you may not feel comfortable owning real estate in an area prone to extreme weather events because they are becoming more common.â€

That’s certainly 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. “Increasing climate risks, taxes and insurance have prevented me from buy”.

Speaking of insurance, Farmers Insurance announced last summer that it would no longer offer any home, auto or tent policies in the state of Florida. Progressive and AAA are also reducing their coverage in the area, which could deter buyers.

High Risk Area: Arizona

Phoenix is ​​one of the nation’s fastest-growing cities, even though it experienced 100 consecutive days of temperatures above 100 degrees Fahrenheit this year.

“This has not affected our market, [because] Environmental factors aren’t high on most buyers’ concern lists, says real estate agent Cory Pinter, of Inherited House Guide.

Pinter informs customers about potential climate risks, but ultimately buyers make their own decisions.

Phoenix real estate agent Stacy Miller of Re/Max Fine Properties says many people who move to Arizona simply prefer the heat there to the snow and ice elsewhere.

The widespread use of air conditioners has also supported Americans moving south, according to the New York Times.

“For me, personally, moving from Texas to Arizona was an easy choice because nine months out of the year it’s glorious,” says Miller.

High Risk Area: California

California has been wracked by wildfires, landslides and earthquakes, but still sees a huge influx of new residents.

“I’ve had clients move into high fire risk areas just because it suits their lifestyle and they’ll be closer to their friends,” says Sam Fitz-Simon, an estate agent. with Compass in Danville, CA.

State Farm stopped selling new home insurance in the state last summer and is pursuing rate hikes of up to 52% on certain residential policies. Farmers Insurance, Allstate, USAA and Hartford have previously declared a pause in issuing new policies to California homeowners.

“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 left 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 any insurance carrier.â€

This is because most home insurance companies will automatically cancel your new application if your home were to withdraw its insurance at any time.

“Many homeowners who lost their policies because of high fire or flood risks are now stuck with homes they can’t sell to most people,” says Drew. “This is currently a problem in Palos Verdes, where a large portion of houses are currently falling into the ocean due to landslides.”

But even though these insurance issues are indeed on the rise, as long as people continue to “California Dream,” they’ll want to move to the Golden State regardless.

High Risk Area: Texas

Texas has drawn 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 factor much into the decisions of homebuyers in the Dallas area, according to real estate agent Paige Elliott, of Elliott & Elliott Real Estate Group in Dallas, TX.

“Instead, quality of life, cost of living and our mid-coast location continue to be the driving factors,” says Elliott.

Extreme weather events in Texas — including 10 tornadoes in one night a few years ago, and spring and fall wind storms — are “frustrating, yes,” but most aren’t going away yet, she says.

As for rising homeowner insurance premiums, Elliott says they are a concern for homebuyers across the state.

“We’re suggesting homebuyers confirm insurance during the option period so they can minimize surprises due to high costs or lack of available coverage,” she explains.

High Risk Area: Carolinas

Asheville, NC, was hit particularly hard by Hurricane Helene. And according to the South Carolina Division of Emergency Management, South Carolina is one of the most vulnerable states in the nation to 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 place,” says Elyse Sarnecky, director of marketing for Marketplace Homes, which has a strong presence in the Carolinas. “High insurance rates due to extreme weather are not always a deterrent.â€

However, natural disasters are more likely to play a role in homebuyers’ decisions when they are considering moving to or from an area that has been affected by events such as hurricanes, wildfires or floods, Sarnecky says.

“These buyers tend to be a bit more cautious and often ask about the disaster history of a particular region or property,” she explains.

According to Sarnecky, real estate investors are growing more wary of buying in high-risk hotspots.

“We have helped several clients 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 an exchange 1031,” says Sarnecky.

Holiday homes are also affected.

“We are seeing a record number of owners contacting us to inquire about selling their second waterfront properties,” explains Sarnecky. “This is often due to issues directly related to extreme weather and natural disasters.”