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| Daren Blomquist |
IRVINE, CA, Sept. 20,
2018 — ATTOM Data Solutions,
curator of the nation’s premier property database, today
released its 2018 U.S. Natural Hazard Housing
Risk Index, which found that median home prices in cities with the top 80th percentile
for natural hazard housing risk have appreciated 40 percent on average over the
last 10 years — 1.7 times the 24 percent home price appreciation in the overall
U.S. housing market during the same time period.
“Weather can have an enormous impact on homeowners and the
housing market. When big weather events such as hurricanes, tornados and
hail hit, many homeowners suffer financial hardship from various sources such
as lost wages and losses due to inadequate insurance.
Christine Stricker Sr.
Marketing Manager, Projects
Office: 949.748.8428
Email: christine.stricker@attomdata.com
For the report ATTOM indexed natural hazard risk in more than
3,000 counties and more than 22,000 U.S. cities based on the risk of six
natural disasters: earthquakes, floods, hail, hurricane storm surge, tornadoes,
and wildfires.
ATTOM also analyzed housing trends in 2,616 cities and 440
counties — containing more than 53 million single family homes and condos —
broken into five equal quintiles of natural hazard housing risk (see full
methodology below).
“While combined natural disaster risk has not seemed to hobble
home price appreciation over the past decade, the story is much different for
some individual hazard risks — namely flood, hurricane storm surge and wildfire
risk,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.
“Home price appreciation in the overall U.S. housing market was double the rate
of appreciation in cities with the highest flood risk and triple the rate of
appreciation in cities with the highest hurricane storm surge risk over the past
10 years.
"The broader market has also outperformed appreciation in cities with
the highest wildfire risk during the last decade, although the gap is much
narrower.”
Overall Natural Hazard Risk Category
|
||||||
Housing Metric
|
Very Low
|
Low
|
Moderate
|
High
|
Very High
|
Grand Total
|
Number of Cities
|
524
|
522
|
524
|
523
|
523
|
2616
|
Single Family Homes
& Condos
|
9,185,179
|
9,434,995
|
11,107,207
|
12,524,073
|
11,039,375
|
53,290,829
|
Average Home Value
|
$282,218
|
$267,380
|
$260,204
|
$298,559
|
$624,357
|
$346,516
|
Average Property
Age (Years)
|
45
|
43
|
39
|
36
|
42
|
41
|
Average Property
Tax
|
$4,518
|
$3,705
|
$3,321
|
$3,652
|
$4,959
|
$4,031
|
Average Property
Tax Rate
|
1.7%
|
1.4%
|
1.3%
|
1.3%
|
0.9%
|
1.3%
|
Average Foreclosure
Rate
|
0.65%
|
0.38%
|
0.36%
|
0.29%
|
0.21%
|
0.38%
|
Avg Pct Seriously
Underwater (LTV 125+)
|
10.2%
|
9.9%
|
9.8%
|
7.9%
|
4.7%
|
8.5%
|
Average
Homeownership Tenure
|
8.19
|
7.63
|
7.60
|
7.66
|
9.23
|
8.06
|
Average 2018 Median
Sales Price
|
$244,079
|
$232,812
|
$231,432
|
$267,133
|
$582,876
|
$311,640
|
Average
Premium/Discount to Market Value
|
-3.7%
|
-3.7%
|
-3.0%
|
0.3%
|
1.0%
|
-1.8%
|
Average of 1-Year
HPA
|
6%
|
7%
|
7%
|
6%
|
9%
|
7%
|
Average of 5-Year
HPA
|
29%
|
39%
|
39%
|
43%
|
54%
|
41%
|
Average of 10-Year
HPA
|
11%
|
19%
|
21%
|
28%
|
40%
|
24%
|
Foreclosure rates elevated in highest-risk flood cities
Foreclosure rates were lower in cities in the top 80th percentile
for natural hazard housing risk, and this was true for all individual natural
hazard risk types except for flood risk. In cities in the top 80th percentile
for flood risk, active foreclosures represented 0.61 percent of all properties,
well above the foreclosure rate of 0.38 percent across all risk categories.
“Weather is the largest external swing factor in U.S. economics
and accounts for over $550 billion per year in lost revenue and up to 76,000
lost jobs,” said Mark Gibbas, president and CEO at WeatherSource, a
technology company that provides global weather and climate data along with
advanced analytics.
 |
| Mark Gibbas |
"And while the impact on
homeowners can be severe, hurricanes like Harvey can change the landscape of
the housing market region wide, including shifts in the number of available
homes and shifts in home values.”
Cities with the highest flood risk also posted seriously
underwater rates (loan-to-value ratio of 125 percent or higher) above the
overall market average — 8.9 percent of all homes with a mortgage compared to
8.5 percent nationwide.
Tornado risk was the only other individual natural
hazard risk factor with seriously underwater rates above the market average in
the highest risk cities — 10.0 percent of all homes with a mortgage.
CONTACT:
Marketing Manager, Projects
Office: 949.748.8428
Email: christine.stricker@attomdata.com
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