Climate Risk Isn't Stopping Home Buyers: Realtor.com® Finds $11.2 Trillion in Homes Exposed

(Neutral)

Rhea-AI Summary

Realtor.com (NWS) reports that 23.1% of U.S. homes, worth an estimated $11.2 trillion, face severe or extreme wind, flood or wildfire risk, yet buyer interest in many high-risk areas matches or exceeds that in nearby lower-risk markets.

Homeowners in severe or extreme risk areas already face higher holding costs. According to Realtor.com, median monthly HOA fees for these homes are $192, 53.6% higher than the $125 median for lower-risk homes, with the largest percentage gaps in Delaware, South Carolina and Oregon. Active National Flood Insurance Program policies declined 4.5% from May 2025 to May 2026, while median flood insurance premiums are projected to rise from $689 to $1,288. Serious mortgage delinquency rates in Louisiana and Mississippi reached 1.7% and 1.4% by September 2025, versus a 0.8% national average.

News Explained

The July 23, 2026 release is a market report, and its climate-risk figures use updated First Street estimates that Realtor.com says are not directly comparable with its 2025 report; therefore, they do not establish a year-over-year change in exposure.

News Market Reaction – NWS

-3.88%

1 alert

-3.88% Session close to close

$16.77B Market Cap

0.3x Rel. Volume

In the Jul 23 session, NWS declined 3.88%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

NWSA showed a -1.26% move in the provided peer snapshot, while the momentum scanner identified no pe...

Analysis

NWSA showed a -1.26% move in the provided peer snapshot, while the momentum scanner identified no peers. That context frames this Realtor.com report as company-specific, with insurance availability and costs as risks to monitor.

Key Figures

Homes facing severe or extreme risk: 23.1% Exposed home value: $11.2 trillion Median HOA fee: $192 per month +5 more

8 metrics

Homes facing severe or extreme risk 23.1% U.S. homes exposed to severe or extreme wind, flood or wildfire risk

Exposed home value $11.2 trillion Value of U.S. homes facing severe or extreme risk

Median HOA fee $192 per month Homes facing severe or extreme risk

HOA fee premium 53.6% Compared with lower-risk homes

NFIP policy decline 4.5% Decrease in active contracts between May 2025 and May 2026

Santa Clara risk-home views 48% more views per listing Severe or extreme risk homes versus lower-risk homes

Los Angeles risk-home pricing 75% Price per square foot versus homes without severe or extreme risk

Median annual flood premium $1,288 Projected increase from $689 in December 2022

Historical Context

5 past events · Latest: Jul 21 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 21	Earnings date notice	Neutral	-0.8%	News Corp scheduled fiscal fourth-quarter and full-year results for August 5, 2026.
Jul 21	Housing market report	Neutral	-3.1%	Realtor.com expanded its Market Clock tool and reported increasingly buyer-friendly metro conditions.
Jul 20	Starter home report	Negative	-0.7%	The report described fewer affordable listings and declining sub-$350,000 starter-home sales.
Jul 16	Conference exhibitor announcement	Neutral	-0.4%	Inman announced 35 exhibitors and 14 startups for its San Diego conference.
Jul 16	Distressed sales report	Positive	+2.8%	Short-sale volumes increased while discounts narrowed relative to estimated property values.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Three of five recent News Corp news events had negative 24-hour reactions, including two Realtor.com reports.

Key Terms

national flood insurance program, mortgage delinquency rate

2 terms

national flood insurance program regulatory

"National Flood Insurance Program (NFIP) active contracts fell 4.5%"

A national flood insurance program is a government-backed insurance system that sells or guarantees flood coverage to property owners where private insurers are unwilling or unable to provide it. Like a safety net under homes in flood-prone areas, it spreads the cost of flood damage across many policyholders and can affect property values, mortgage availability, reconstruction costs, and the financial exposure of banks and insurers—information investors use to assess real estate, lending and insurance risks.

mortgage delinquency rate financial

"serious mortgage delinquency rates in Louisiana and Mississippi"

The mortgage delinquency rate is the percentage of mortgage loans in a given pool or portfolio that are past due by a specified number of days (often 30 days or more), showing how many borrowers have missed scheduled payments. It matters to investors because rising delinquency rates signal higher credit risk and potential losses for lenders and holders of mortgage-backed securities, and can act like a fever check on the housing market and broader economic health.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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07/23/2026 - 06:00 AM

Nearly one in Four U.S. Homes Face Severe or Extreme Wind, Flood or Wildfire Risk, and Higher Costs Are Already Showing Up in HOA Fees and Insurance

AUSTIN, Texas, July 23, 2026 /PRNewswire/ -- Home shoppers in some of the country's priciest markets continue to consider high-risk homes over lower-risk alternatives nearby, according to a Realtor.com ^® report released today. Some 23.1% of U.S. homes, representing $11.2 trillion in value, face severe or extreme risk from wind, flood or wildfire, and buyer demand in some of the most exposed markets remains just as strong, or stronger, than in lower-risk areas nearby.

The financial fallout is no longer waiting on the next disaster to show up. Homeowners in high-risk areas already pay a median $192 a month in HOA fees, 53.6% more than homeowners in lower-risk areas. National Flood Insurance Program (NFIP) active contracts fell 4.5% between May 2025 and May 2026, and serious mortgage delinquency rates in Louisiana and Mississippi have run more than double the national average.

"Price is still the biggest motivator for a lot of home shoppers, even in places where climate risk is well known," said Jiayi Xu, Economist at Realtor.com^®. "But that doesn't mean the risk disappears. It shows up later, in insurance premiums, HOA fees and financing, often after the sale is already done."

Affordability and Location Outweigh Climate Risk

In several of California's most expensive counties, climate risk comes with a discount, and some buyers are choosing to take it. In Santa Clara County, homes facing severe or extreme risk are priced at just 78% the price of homes without severe or extreme risk per square foot, and draw 48% more views per listing. Los Angeles County shows a similar pattern, with severe or extreme risk homes priced at 75% of those without severe or extreme risk and drawing 23% more views. Even the January 2025 Los Angeles wildfires only interrupted that pattern briefly: the views ratio between severe or extreme and lower-risk homes dropped from 1.21 in December 2024 to 1.11 the following month, then rebounded to 1.31 by March.

In other markets, buyers of severe or extreme risk homes pay a premium instead of a discount. In Anne Arundel County, Md., severe or extreme risk homes are priced 44% more than the price per square foot of homes without severe or extreme risk, driven by Chesapeake Bay waterfront access. In Llano County, Texas, severe or extreme risk homes are priced two times non-severe or extreme risk homes, reflecting demand for Hill Country ranches and river retreats.

The Costs Are Already Showing Up

The median monthly HOA fee for a home facing severe or extreme risk is $192, compared with $125 for lower-risk homes, a gap of 53.6%. The difference is widest in Delaware, South Carolina and Oregon at the state level, and in Portland, Ore.; Washington, D.C.; and Seattle at the metro level.

States Where Climate Risk Adds the Most to HOA Costs

State	HOA Fee, Severe/Extreme Risks	HOA Fee, Non-Severe/Extreme Risks	Cost Difference by $	Cost Difference by %
Delaware	$177	$25	$152	608.0 %
South Carolina	$296	$50	$246	492.0 %
Oregon	$423	$114	$309	271.1 %
Maryland	$282	$104	$178	171.2 %
Pennsylvania	$332	$150	$182	121.3 %

Flood coverage is also becoming harder to hold onto. Active NFIP policies fell from 3.62 million to 3.45 million between May 2025 and May 2026, with Texas seeing the largest drop at 7.8%. The decline follows the rollout of the NFIP's Risk Rating 2.0 pricing model, which ties premiums more closely to a property's individual flood risk. Beyond Texas, Oklahoma, Idaho, Mississippi and Alabama each saw active policy counts drop more than 6%. Median annual premiums are also climbing, projected to nearly double over time, from $689 in December 2022 to $1,288.

Mortgage performance data shows where the pressure eventually surfaces. Louisiana and Mississippi have run persistently above the national average in serious mortgage delinquency, reaching 1.7% and 1.4% respectively by September 2025, compared with a national average of 0.8%. Florida and Texas started 2023 near the national average and have since climbed above 1.0%, reflecting both direct storm damage and the added strain of rising insurance costs.

"Having the full financial picture, including future insurance costs and coverage availability, matters just as much as the purchase price," said Xu. "There's nothing wrong with choosing a high-risk area for affordability or lifestyle, as long as it's an informed choice."

Methodology

Climate risk classifications in this report are based on the most current First Street estimates. Due to methodology updates from First Street, these figures are not directly comparable to those reported in Realtor.com 2025 Climate Risk Report.

Climate risk factor: Severe and extreme risk refers to homes with a First Street Fire Factor^®, Flood Factor^®, and Wind Factor™ of 7 or higher. Each Factor's score boundaries were overlaid on top Realtor.com^® single-family, condo, townhome, row home, and co-op property data to assign a score to each home, which was matched to the most recent AVM estimates from Realtor.com^® data providers to derive values.

HOA fee: This report aggregates weekly snapshots of all for-sale listings in the United States on Realtor.com^® between June 2025 and May 2026. Listings are considered to be subject to an HOA if they have a monthly HOA fee greater than zero dollars published on them. Median monthly HOA dues calculations for a given geography or listing segment include only nonzero HOA dues (i.e., listings without HOA dues are not included as zeros).

Mortgage delinquency rate is obtained from the Consumer Financial Protection Bureau.

Online shopping data: The online shopping data in this report measures traffic to listing detail pages between June 2025 and May 2026. Climate risk scores appear on those detail pages.

About Realtor.com^®For over 30 years, Realtor.com^®has connected buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 real estate site REALTOR® agents recommend, Realtor.com^® delivers consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact: Emily Do, press@realtor.com

View original content:https://www.prnewswire.com/news-releases/climate-risk-isnt-stopping-home-buyers-realtorcom-finds-11-2-trillion-in-homes-exposed-302832382.html

SOURCE Realtor.com

FAQ

How many U.S. homes face severe climate risk according to Realtor.com and what is their value?

According to Realtor.com, about 23.1% of U.S. homes face severe or extreme wind, flood or wildfire risk, representing roughly $11.2 trillion in housing value. This share reflects homes with high First Street Fire, Flood or Wind Factor scores of 7 or above.

How much higher are HOA fees for high climate-risk homes in the U.S. housing market?

According to Realtor.com, median HOA fees for homes facing severe or extreme climate risk are $192 per month, versus $125 for lower-risk homes, a 53.6% gap. The widest percentage differences appear in Delaware, South Carolina and Oregon, where added costs are especially pronounced.

What did the July 2026 Realtor.com climate risk report reveal about NFIP flood insurance trends?

According to Realtor.com, active National Flood Insurance Program policies fell from 3.62 million to 3.45 million between May 2025 and May 2026, a 4.5% decline. Texas saw the largest drop at 7.8%, while median annual NFIP premiums are projected to rise from $689 to $1,288 over time.

How does climate risk affect mortgage delinquency rates in states like Louisiana and Mississippi?

According to Realtor.com, serious mortgage delinquency rates reached 1.7% in Louisiana and 1.4% in Mississippi by September 2025, compared with a national average of 0.8%. Florida and Texas also moved above 1.0%, reflecting storm impacts and rising insurance-related financial strain.

Do home buyers pay more or less for high climate-risk homes in major markets?

According to Realtor.com, pricing patterns vary by market. In California’s Santa Clara and Los Angeles counties, severe or extreme risk homes are priced at 78% and 75% of lower-risk homes per square foot, respectively, yet attract more listing views. Other counties, like Anne Arundel and Llano, show premiums instead.

What methodology did Realtor.com use to classify severe and extreme climate risk in its 2026 report?

According to Realtor.com, severe and extreme risk classifications rely on First Street Fire Factor, Flood Factor and Wind Factor scores of 7 or higher. These scores are overlaid on Realtor.com property data and matched to automated valuation model estimates to derive exposed home counts and values.