Housing is getting hit by a home insurance shock

RESIDAY IS ON FRIDAY!!

On Friday, November 8th, in New York City, ResiClub will host ResiDay, bringing together many of the brightest minds in the housing market. This will be our first-ever one-day conference.

There will be hundreds of influential housing investors, developers, lenders, and brokers who are shaping the future of residential real estate, homebuilding, mortgage lending, and build-to-rent at ResiDay. Several prominent business and real estate journalists will also be there.

The ResiClub team will lead a day of insightful discussions on market trends and strategies impacting the future of the U.S. housing landscape. ​Expect top-tier speakers, ample networking opportunities, and hours of engaging discussions on the future of the U.S. housing market.

[ResiClub PRO members, our paid tier, can attend ResiDay for free]

In light of ResiDay on Friday, we’ve been operating on a limited content calendar for both our free newsletter and our paid ResiClub PRO research newsletter. We’ll resume normal cadence next week.

Housing is getting hit by a home insurance shock

There aren’t many firms that understand how climate risk is impacting the housing market better than CoreLogic, which equips insurers with tools to evaluate and price climate-related risks into home insurance. Through its data, analytics, and risk modeling solutions, CoreLogic enables insurers to assess risks from natural hazards—such as floods, wildfires, hurricanes, and earthquakes.

Over the past few years, the disaster risk that has been modeled and assessed for residential real estate, has put upward pressure on home insurance premiums.

Indeed, according to a recent analysis of CoreLogic data by the National Bureau of Economic Research, the median annual U.S. home insurance premium rose 33% between 2020 and 2023.

To gain a clearer picture of where home insurance is headed next and what’s currently driving up home insurance rates, I’ll be interviewing John Rogers, CoreLogic’s Chief Analytics Officer, at ResiDay this Friday (in 2 days!) from 11:50 a.m. to 12:15 p.m.

Click here to view an interactive of the map below

While disaster risk is one reason that home insurance premiums are rising faster than overall consumer inflation, it isn’t the only reason. A portion of the increase in home insurance premiums stems from rising housing and construction costs, which soared during and following the pandemic. Replacement and repair costs have soared, and insurers are trying to keep pace, although some state insurance commissions are slowing the process.

Florida, in particular, has experienced some of the largest increases in home insurance premiums and home prices over the past three years. The Pandemic Housing Boom was especially intense in Florida, as remote work enabled an influx of buyers from the North.

According to John Rogers at CoreLogic here are the six main factors driving up home insurance rates 👇

If you are in New York City on Friday, I’d love to see you at ResiDay!

Below is our agenda, including my conversation with Rogers 👇

What does Donald Trump’s return to the White House mean for the housing market?

In the days ahead, we’ll explore how Tuesday’s election results could shape the housing market in 2025 and beyond, drawing insights from a diverse range of perspectives.

In the meantime, here’s what CoreLogic chief economist Selma Hepp told ResiClub today:

"The re-election of Donald Trump to the White House will usher in a de-regulatory environment for housing. This could potentially mean rezoning federal lands to build homes for would-be first-time homebuyers. Nevertheless, with affordability and high mortgage rates remaining a huge challenge for potential homebuyers, it is not clear yet which of his policies would help provide relief, particularly given that rates are expected to remain higher under the ‘red sweep’ with tariffs and deportations adding to inflation pressures. However, extended tax cuts and additional incentives, such as a homebuyer tax credit and/or down payment assistance, may also be in the cards for this next Trump presidency” wrote Hepp.

Keep in mind, there’s still a great deal of uncertainty, and the speculation you’re seeing online today could turn out to be incorrect. After all, we’re not yet exactly sure what the House will look like or what their fiscal agenda will be.

We're still looking for another volunteer for ResiDay in New York City on Friday—if you're interested, email me: [email protected]. In return, you'd get a free ResiClub PRO membership for two years