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- Violent weather events are driving down real estate values in Texas, Florida, and Louisiana, according to Capital Economics.
- Property-insurance costs have grown at the fastest rate in 20-years due to billion-dollar storm damages, the firm said.
- Multifamily real estate values in the coastal regions of these states have dropped 7% since 2019, double the national average.
The rise in violent weather events over the past few years are driving a decline in real estate values in Texas, Florida, and Louisiana, according to a recent note from Capital Economics.
Much of that is due to surging property-insurance costs in the wake of severe storms and hurricanes. Premium growth recently reached a 20-year high, the research firm said.
“Last year the US saw 28 extreme weather events where damage exceeded $1 billion, over three times the usual number in the past half-century,” economist Imogen Pattison of Capital Economics said.
Already this year, there have been 15 storm events that each caused more than $1 billion in damage. Just a few weeks ago, Hurricane Beryl — which was the earliest-formed Category 5 hurricane in Atlantic history — caused an estimated $2.7 billion in damages, according to Karen Clark & Co.