The sun-drenched cities of the Southeast and California may be beautiful, but they can also pose many risks for homeowners.
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“Rising costs, interest rates, and inflation have made it more expensive to own a home than ever before,” says Christina Su, real estate investor at Noblivest. “You also have to consider the increasing occurrence of natural disasters, including storms, hurricanes, tornadoes, high winds, earthquakes, and fires.”
Additionally, ClaimGuide, a nonprofit that “bridges the gap between homeowners and insurance companies,” ranked cities across the U.S. based on extreme weather risk, crime rates, and home vacancy rates.
Here are the top cities where homeownership can be a risky investment:
Houston, Texas
Roughly 98% of Houston homes are built on land that is at risk of extreme heat and flooding. Of these homes, 64% are likely to suffer flood damage within the next 30 years. And when weather conditions aren’t good enough, your taxes go up.
“In Texas, median property taxes increased 26% between 2019 and 2023,” Sue said. “Nationwide, home prices are up a staggering 40%+ between 2019 and 2023. As home prices continue to rise, this is a risk to consider.”
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San Bernardino, California
Nearly all property in San Bernardino is at risk from extreme heat, and 91% is in wildfire zones. According to the global population data nonprofit World Population Review, San Bernardino has 1,291 incidents per 100,000 residents, making it one of the top 20 most violent cities in the U.S.
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Glendale, California
Like many of the California cities on the list, Glendale is often in the path of the region’s most notorious wildfires. Approximately 99% of homes are at risk from wildfires, and there are only nine fire stations within the city limits. Glendale has 80 fire stations and is among the top 10 U.S. cities for natural disaster declarations.
New Orleans, Louisiana
Despite a $14.5 billion flood protection system installed after Hurricane Katrina, New Orleans may be in a tough spot for homeowners. Still, 99% of New Orleans homes are at risk of severe flooding within the next 30 years. The average age of a home in the city is 62 years, putting homeowners at high risk for property damage.
Fort Lauderdale, Florida
More than one in five homes in Fort Lauderdale, or 21.4% of homes, are currently vacant. This doesn’t seem to be a big factor until the city is at risk for extreme heat (100% of homes) and severe flooding (79%). Living next to a vacant home means no one is prepared for a natural disaster, and your home is exposed to major debris and other public damage from storms and flooding.
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Miami, Florida
Watching waves crash against luxury high-rise buildings on TV and in the movies may seem like something from the movies, but if you live in Miami, it’s not. About 55% of the city’s homes are at risk of severe flooding within the next 30 years, and all homes (100%) are at risk of extreme heat. Additionally, Miami has just 3.3 fire stations per 100,000 residents, which can slow emergency response times and increase property damage.
Hollywood, Florida
The average home in Hollywood, FL was built in 1968, before regulators implemented modern safety standards. Like other cities on this list, 56% of homes are at risk of flooding and 100% are at risk of extreme heat. With a home vacancy rate of 15.9%, it would be difficult to protect all homes from storm damage in the area.
Baton Rouge, Louisiana
Crime is rampant in Louisiana’s capital city, with an average of 5,900 property crimes per 100,000 residents, and Baton Rouge has the highest crime rate of the top 10 cities. Nearly all homes are at risk of extreme heat, and only 34% of homes are at risk of flooding within the next 30 years.
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St. Petersburg, Florida
Although St. Petersburg enjoys 361 days of sunshine per year, the city’s homes (100%) are at risk of extreme heat and 47% face the risk of flooding over the next 30 years.
Rancho Cucamonga, California
In Rancho Cucamonga, billed as an “urban green oasis,” 100% of homes are vulnerable to wildfire, 90% of homes are exposed to extreme heat, and 36% of homes could be affected by flooding within the next 30 years.
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This article originally appeared on GOBankingRates.com: 10 Cities Where Homeownership Could Be a Risky Investment
