How severe climate risks could hurt Boston metro area homeowners
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Nearly 15% of homes in the Boston metro area face severe or extreme risk of hurricane wind damage, according to a Realtor.com analysis.
Why it matters: Climate change is intensifying extreme weather — hiking home insurance premiums in especially storm-prone areas and driving some insurers to retreat.
Threat level: The wind damage risk threatens homes worth a collective $144.9 billion in the region.
- While the metro Boston area's wildfire risk is relatively small, nearly 7% of homes face severe or extreme risk of flood damage (worth an estimated $66.3 billion).
Zoom in: Flood risks, in particular, are "largely underestimated," per the analysis, which looks at data from First Street.
- Homeowners may not realize their property faces significant flood risk — and may skip flood insurance — if it's outside a FEMA Special Flood Hazard Area, defined as having a 1% or greater chance of flooding each year.
Between the lines: Unlike FEMA's maps, First Street's model accounts for heavy rain and future climate changes, identifying millions more properties facing risk.
- First Street's flood risk data estimates that one-quarter of properties (12,115) in Greater Boston face a flood risk.
- The model projects that the number will rise to nearly 29% in 30 years, as climate change leads to higher sea levels and more extreme weather.
- Even if it doesn't kill or injure people, wind and flood damage could cost homeowners and other property owners big time, especially if they lack or lose insurance.
The bottom line: "Understanding climate risk in the housing market is essential, as these challenges not only affect residential safety but also influence property values, insurance costs, and overall market stability," Realtor.com economist Jiayi Xu wrote in the report.