Housing market map: How much home insurance is expected to rise by 2055

Federal Reserve Chair Jerome Powell warned of future mortgage and home insurance unavailability in certain regions due to climate change impacts. This prediction, alarming to the housing sector, prompted analysis of potential high-risk markets. First Street's proprietary analysis forecasts significant increases in home insurance premiums over the next 30 years, unadjusted for inflation. Twenty of the most populous counties with the highest projected premium increases were identified. These counties are predominantly located in Florida and Louisiana, reflecting heightened flood and hurricane risks. Twelve of the top twenty are in Florida, highlighting the state's vulnerability. The projected increases are substantial, ranging from 149% to 634%. Current home insurance premiums are already rising significantly, exceeding 80% in several Florida counties. First Street's projections highlight the growing financial burden on homeowners in vulnerable areas. The findings underscore the need for proactive measures to address climate risks in the housing market. The analysis provides valuable insight into potential future challenges facing the housing sector.