It's an eye-watering figure…
CoreLogic has released its 2022 hurricane report, analyzing hurricane and storm surge and wind risk exposure for single-family residences (SFRs) and multifamily residences (MFRs) along the US Gulf and Atlantic Coast.
According to the report, close to 7.8 million homes with more than $3.2 trillion total reconstruction cost value are at risk of hurricane-related damages, while 33 million homes with almost $10.5 trillion in total reconstruction cost value are at risk of hurricane-force wind damages.
Reconstruction cost value is calculated using the combined cost of construction materials, building equipment, and labor, assuming total destruction of the property.
The data accounts for National Oceanic Atmospheric Association (NOAA) forecasts of an above-normal hurricane season this year, with 21 named storms and up to 10 hurricanes, three to six of which could be major ones.
The report affects both the property and industry sectors as storms take a toll on the housing economy with noticeable spikes in mortgage delinquency rates as well as loss in housing inventory. In 2021, after Hurricane Ida made landfall, 30-day mortgage delinquencies in Houma, LA rose from 1% to 7%. Home prices took longer than usual to recover, and rents weakened as workers and families relocated.
Insurers will play an important role in supporting community resilience in the coming year and hurricane season, ensuring adequate home and flood insurance as hurricanes affect communities beyond the immediate aftermath.
Read more: Housing market slows retreat from rising seas, bigger storms
Among the top 15 metropolitan areas and states with the greatest number of SFRs and MFRs at risk of storm surge and wind damage, the New York City metro area was the most at risk. Nearly 900,000 SFRs and MFRs are at risk of storm surge damage, while over four million SFRs and MFRs with more than $2.2 trillion in RCV are at risk of wind damage.
The Miami metro area follows closely behind with 770,000 SFRs and MFRs at risk of storm surge damage and more than two million SFRs and MFRs at risk of wind damage.
Read next: Housing market slows retreat from rising seas, bigger storms
Among states, Florida, Louisiana, and New York have the greatest number of SFRs and MFRs at risk of storm surge damage with more than three million, 911,000, and 600,000 homes at risk, respectively. Texas is the most vulnerable to wind damage, with more than 8.8 million homes at risk.
