Hurricane Risk, Insurance Costs Stall U.S. Coastal Home Sales in 2025
Now that the 2025 hurricane season has officially begun, according to NOAA, a new and growing concern is emerging for homeowners along the U.S. coast — especially in an already tight housing market with historically low inventory. The rising cost and shrinking availability of property insurance are starting to impact home values and slow sales, even in areas once seen as stable. It’s not location or demand driving this shift, but the increasing risks posed by natural disasters.
According to the newly released 2025 Hurricane Risk Report by Cotality, the financial and social consequences of intensifying hurricane activity are mounting — particularly in parts of the country less prepared to withstand extreme weather events.
Cotality’s nationwide analysis revealed that more than 33.1 million residential properties — stretching from Texas to Maine — are at moderate or greater risk of hurricane wind damage. The combined reconstruction cost value (RCV) of these homes exceeds $11.7 trillion.
The report also highlights storm surge flooding, identifying over 6.4 million homes at risk, with a combined RCV of $2.2 trillion.
“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.”
The report underscores that even areas outside of historically high-risk zones are feeling the pressure. While an average of two hurricanes make U.S. landfall each year, their impact is increasingly reflected in local real estate markets. In cities like Charleston, S.C., Wilmington, N.C., and Virginia Beach, VA — where more than 656,000 homes face storm surge flooding risk — homes are lingering longer on the market.
Cotality data shows that homes in Virginia Beach remained on the market 32% longer in 2025 compared to early 2024. Wilmington experienced a similar slowdown, with homes listed 19% longer during the same period.
“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.”
The findings suggest a pressing need for policymakers, insurers, and real estate professionals to adapt to shifting risk landscapes — and for homeowners to better understand how climate-related insurance factors may shape the future of housing on the coast.
