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s the 2025 hurricane season begins, a growing concern is emerging for U.S. coastal homeowners: rising insurance costs and shrinking availability are impacting home values and sales, even in previously stable areas. The increasing risks posed by natural disasters are driving this shift, not location or demand.

    According to Cotality's 2025 Hurricane Risk Report, over 33 million residential properties along the coast are at moderate or greater risk of hurricane wind damage, with a combined reconstruction cost value exceeding $11.7 trillion. Storm surge flooding affects an additional 6.4 million homes, with a combined RCV of $2.2 trillion.

    "The coastline is evolving," said Maiclaire Bolton-Smith, Cotality's vice president of insurance product marketing. "Hurricane impacts are extending further and on a more consistent basis, reflected in insurance pricing that can price people out of previously less-risky markets."

    Even areas outside historically high-risk zones are feeling the pressure, with cities like Charleston, S.C., Wilmington, N.C., and Virginia Beach, VA experiencing slower home sales. In Virginia Beach, homes lingered 32% longer on the market in 2025 compared to early 2024.

    While challenges facing coastal real estate markets are serious, they are not insurmountable. "Insurance premiums, lending decisions, property values, and real estate trends are all influenced by risk," Bolton-Smith said. "With the right information, we can manage these risks."