CoreLogic reports NY and Miami have most homes at risk of storm damage

CoreLogic has said that New York and Miami have the most homes at risk of storm surge damage, alongside the highest reconstruction cost value.

According to the firm, its 2022 Hurricane Report shows that nearly 7.8m homes with more than $2.3tn in combined reconstruction cost value (RCV) are at risk of hurricane-related damages. The report also revealed nearly 33m homes with nearly $10.5tn in combined RCV are at risk of hurricane-force wind damages.

Dr. Daniel Betten, chief meteorologist at CoreLogic, said: “This hurricane season could be particularly severe for the U.S. Gulf Coast due to warmer-than-average Atlantic Ocean temperatures, an ongoing La Niña, and a stronger than average loop current in the Gulf of Mexico. Although La Nina events typically occur once every three years, this fall will likely be the fifth La Nina event over the last seven years.”

CoreLogic evaluated the storm surge and hurricane wind risk levels for both SFRs and MFRs from Texas to Maine for the 2022 hurricane season. The data includes the total estimated RCV, which is calculated using the combined cost of construction materials, building equipment and labour, and assumes total 100% destruction of the property. It is worth nothing the extreme unlikelihood that all risk-prone properties will be impacted or that all homes will be 100% destroyed during a hurricane season. These figures provide a point of reference and do not indicate what will occur this season.

Metro Area and State Implications. CoreLogic examined the top 15 metropolitan areas and states with the greatest number of SFRs and MFRs at risk for storm surge and wind damage:

The New York City metro area has the greatest risk, with nearly 900,000 homes with more than $432bn in RCV at risk of storm surge damage and more than four million homes with more than $2.2tn in RCV at risk of wind damage.

The Miami metro area follows, with nearly 770,000 homes with nearly $193bn in RCV at risk of storm surge damage and more than two million homes with more than $500bn in RCV at risk of wind damage.

At a state level, Florida, Louisiana, and Texas have the greatest number of homes at risk of storm surge damage with more than three million; nearly 911,000; and more than 542,000 homes at risk, respectively. Texas tops the list for hurricane wind risk with more than 8.8m homes at risk.