BiggerPockets Daily Tracking Where Insurance Prices are Increasing the Most
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Aug 7, 2025 Home insurance premiums are skyrocketing, with a staggering 38% rise since 2019 outpacing income growth. Areas like Miami and Sacramento face the brunt of these increases due to climate risks. The surge is squeezing budgets and threatening affordability, particularly for first-time buyers. Additionally, real estate development is driving up insurance premiums, raising concerns about housing access in vulnerable markets. With carriers exiting high-risk areas, the outlook for affordable housing continues to dim.
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Insurance Costs Outpace Income
- Home insurance premiums have risen 38% nationally since 2019, far outpacing the 22% income growth.
- High-risk climate markets face even faster increases due to more frequent hurricanes and wildfires.
Climate Risks Drive Premium Spikes
- Miami leads with a 57% premium increase, facing $1 trillion residential real estate at extreme wind risk.
- Other metros like Sacramento and Jacksonville also see large hikes due to wildfire and wind risks.
Hurricane Trends in Florida
- Matt Mir grew up in Orlando, noting hurricanes were common but now storms seem stronger and have hit developed areas directly.
- More development raises total property value and thus insurance coverage costs in Florida metro areas.