NEW ORLEANS – Nearly 90% of homes in the New Orleans region face severe flood risk, the highest share in the nation, according to a Realtor.com® analysis titled "2025 Realtor.com Housing and Climate Risk Report."
The report finds that more than one in four U.S. homes, representing $12.7 trillion in real estate value, are at severe or extreme risk from flooding, hurricanes, or wildfires. These climate threats are reshaping affordability, insurance costs, and housing security nationwide, with New Orleans standing out as one of the most vulnerable markets.
Flood Risk: A Stark Gap Between FEMA Maps and Reality
New Orleans leads the nation in the gap between FEMA flood maps and actual climate risk. The report finds that 88.9% of homes in the metro area face severe or extreme flood risk, yet most are not identified in federal Special Flood Hazard Areas. As a result, tens of thousands of local homeowners may be underestimating their exposure or unprepared for the financial consequences. The large difference in at-risk home counts arises because FEMA zones do not account for heavy rainfall and future climate changes.
The total value of New Orleans-area homes at severe flood risk is estimated at $72.1 billion, making the metro one of the nation’s most vulnerable. By contrast, FEMA maps capture only a small portion of that exposure according to the report.
“Climate risks are no longer a distant threat for U.S. housing—they are a present reality that put a large chunk of U.S. real estate value at risk,” said Danielle Hale, Chief Economist at Realtor.com®. “In many markets, the gap between perceived risk and actual risk is sizable, particularly for flooding. This has significant consequences for homeowners, buyers, and insurers, and it underscores the need for readily available data to help households make informed decisions.”
Hurricane Winds: A Universal Hazard in Louisiana
Flood risk is compounded by hurricane exposure. The report shows that every home in the greater New Orleans region is at severe or extreme risk of hurricane wind damage, a status shared by other Gulf Coast cities including Miami, Houston, and Tampa. In New Orleans, this represents $81 billion in real estate value at stake.
Baton Rouge also appears on the list of metros where all homes face severe wind risk, with $70.1 billion in housing value exposed.
Because hurricane and flood risks frequently overlap, homeowners with a $400,000 policy may face deductibles so high they must cover up to $20,000 in damage before insurance begins to pay.
Insurance Costs: Burdening Homeowners and the Market
For New Orleans households, the costs of insuring against these risks are already among the steepest in the nation. The report shows that local premiums equal 3.6% of a home’s market value which is second only to Miami, where premiums account for 3.7%.
A typical $231,328 home in New Orleans carries an $8,328 annual insurance bill. In Miami, the figure climbs even higher to more than $22,000. By comparison, the average across the nation’s 100 largest metros is $3,485.
“Climate risk and insurance are not usually a top consideration for home shoppers balancing budgets against still-high home prices and mortgage rates, but these factors already shape ongoing housing costs and affordability, and increasingly whether they can secure affordable insurance coverage,” said Hale. “While the types of risk vary by region—flooding in the Northeast, wildfires in the West, and hurricanes in the South—the financial consequences are increasingly national in scope.”
Baton Rouge also ranks among the nation’s ten most expensive insurance markets, with premiums equal to 2% of home value. Together with New Orleans, Louisiana stands out as one of the hardest-hit states for homeowners.
National Picture: Coastal Cities Dominate the Risk Rankings
While New Orleans tops the country in flood risk share, other metros rank high in total value at risk. Miami leads with $306.8 billion in homes at severe flood risk, followed closely by New York at $295.3 billion and Tampa at $117.7 billion. Houston, with $92.4 billion in homes at severe flood risk, also ranks among the most exposed.
Wildfire risks, though concentrated elsewhere, add to the national picture of strain. In California, nearly 40% of the state’s $1.8 trillion wildfire exposure is clustered in Los Angeles and Riverside. The state’s last-resort insurance plan has ballooned by 289% since 2021, a warning sign for other regions where climate-linked claims could overwhelm markets.
