[SamoyedFurFluff]

This doesn’t quite ring true for me in Florida at least. Most recently, floridas cost of housing is raising ridiculously due to home insurance, with several homes refusing to be insured by anyone for any price. On top of that, assessments on condos and other buildings are raising the costs of high rises as well due to government regulations them to get inspected and implement necessary repairs (after HOAs and condos associations have been skimping on necessary maintenance for decades…)

[bugglebeetle]

The problem of the parasitic drag of real estate speculation is spreading to every major market in the U.S. We’re quickly on track to things getting as bad as they are in Canada. But California has been leading the pack for some time because of some especially stupid laws it passed decades ago.

[marcinzm]

This should be all accounted for in rent. California rent seems to be 50% higher than Florida.

[jajko]

Isn't Florida often hammered by hurricanes? On top of rising sea levels. Compare it to more desert-like California (which has earthquakes but maybe once a century, which then gets some vague misrepresentation in insurance risk calculations).

Insurances generally want your money unless stuff is just too risky. But some folks are eager to build real estate literally on top of dynamite factory if that land would be cheap enough.

So, why are those houses un-insurable is a good question for a start.

Also, OP writes their observation specifically about California.

[jandrewrogers]

California has a substantial wildfire and flooding risk, in addition to its large seismic risk.

[seanmcdirmid]

Most of the wildfire risk is outside of the cities, so it’s not like it is going to influence most homeowner policies. Likewise with flooding.

[jandrewrogers]

Wildfire risk is absolutely in the cities, at least in SoCal. Firestorms move through the canyons in residential areas. Quite a few neighborhoods in San Diego, for example, have been razed to the ground since I lived there, including one I used to live in. These weren’t on the edge of town.

[seanmcdirmid]

There are homes in LA that are at risk to wildfires, in canyons as you say. But that still doesn’t account for most homeowners in the area.

[text0404]

it absolutely does: https://www.bankrate.com/insurance/homeowners-insurance/carr...

[seanmcdirmid]

Ya, Florida is undergoing an insurance crisis right now. It’s not a safe move either.