BiggerPockets Daily Insurance Rates Have Risen By More than 50% in These Markets
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Jun 7, 2025 Home insurance premiums are soaring, outpacing growth in homeowner incomes due to escalating climate risks. Recent data reveals a disturbing national jump of 38% since 2019. Areas like Miami and Sacramento are particularly hard hit, with rising costs straining budgets for first-time buyers. The podcast also dives into how these insurance hikes connect to real estate values, with a focus on diminished competition in the market. Investors are urged to rethink their strategies amidst these challenges that threaten housing affordability in vulnerable regions.
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Insurance Rates Outpace Incomes
- Homeowners insurance premiums have risen 38% nationally since 2019 while homeowner incomes only increased 22%.
- The gap is wider in high-risk climate areas facing hurricanes, wildfires, and flooding, worsening affordability.
Cities Leading Insurance Hikes
- Miami leads with a 57% increase in premiums due to extreme wind risks and billion-dollar real estate exposure.
- Sacramento, Jacksonville, Orlando, and Richmond also face steep increases tied to wildfire and wind hazards.
Florida Storms and Development
- Matt Mir shares his Florida upbringing, noting increased storm sizes hitting Tampa and Miami.
- He explains that growing development boosts real estate value and thus insurance risk and costs.