Los Angeles And Colorado Face Extreme Wildfire Damage
The “2024 Realtor.com Housing and Climate Risk Report.” was released recently. It is an extensive examination of the national real estate market when measured against flood, heat, air quality, wind, and wildfire risks. The study is based on Realtor.com’s single-family, condo, townhome, rowhome, and co-op property data, which assigns a score to each home matched to the most recent Automated Valuation Model (AVM) estimates.
America’s Risk Cities –Miami And Tampa
State Risk –Louisiana
According to the study, “In 2024, approximately 5.5% of homes (worth $3.0 trillion) in the United States face severe or extreme risk of fire damage, and nearly 39.1% of these high-risk homes (worth $1.7 trillion) are in California.” Los Angeles and Riverside face the most significant risks of any metros in the state. The authors also point out that fire insurance in these areas has become harder to buy and more expensive.
Los Angeles Risk
Based on total dollars, Los Angeles has the highest risk from wildfire damage among all metros in the US, at $448 billion. This is 16% of the total dollar value of all residential real estate in the city. Riverside is second at $445 billion, 62% of the total market’s value.
On a percentage basis, the metro with the most real rate at risk of severe or extreme wildfire damage is Colorado Springs at 76%. The city’s total value of residential real estate is $90 billion. Behind Colorado Springs and Riverside, 61% of Tuscon’s residential real estate is at risk. The total value of the Tuscon metro’s residential real estate is $76 billion.
Several studies have shown that many Americans consider climate change risks when relocating. Over time, real estate values will drop in places such as Tucson and Colorado Springs, including several California cities.
