Nearly half of U.S. homeowners are considering relocating in the coming year due to climate-related concerns, while the rising cost of property insurance is increasingly dictating purchasing decisions, according to a new report released by Kin.

The home insurance technology company’s “2026 Homeownership Trends Report,” based on a survey of 1,000 U.S. homeowners conducted in December, reveals a market under dual pressures: physical threats from extreme weather and financial strain from soaring insurance premiums.

With 93% of respondents expecting climate-driven damage to their homes in the next three years, the data suggests that environmental risks are fundamentally reshaping where Americans choose to live and what they can afford.

The report arrives as the housing market attempts to stabilize following a turbulent year. While mortgage rates fell nearly a full percentage point in 2025 — from as high as 7.04% in January to an average of 6.19% in December, according to Freddie Mac data — affordability remains a critical hurdle to homeownership.

Insurance premiums alone jumped 24% between 2021 and 2024, according to the Consumer Federation of America, a cost increase that nearly 80% of homeowners expect to continue in 2026.

The influence of climate change on migration is becoming stark. According to Kin’s data, 49% of homeowners are considering a move in 2026 specifically due to climate concerns. While many potential movers aim to stay local or within their current state, a considerable portion are wary of certain regions.

The survey found that 58% of homeowners would avoid moving to Florida and 52% would avoid California due to the extreme weather risks, making these states the top markets associated with climate concerns. However, with Zillow — the nation’s largest real estate listings company — having restricted access to climate-related data on postings, consumers may find it difficult to ascertain the specific risks associated with a given property.

Interestingly, the survey revealed that some homeowners are bracing for the impact of climate change regardless of whether they move. Sixty-eight percent of respondents expect the frequency of extreme weather events in their area to increase in 2026.

Beyond physical risks, the financial burden of protecting a home is now a primary factor in real estate transactions. Nearly half (49%) of homeowners surveyed said the cost of home insurance weighs “very heavily” or “seriously” on their home purchasing decisions. This sentiment is particularly strong in high-risk states; among respondents who weighed insurance costs heavily, significant portions resided in California, Texas and Florida.

Confidence in affordability is also waning. The report indicated that 31% of U.S. homeowners are not confident they will be able to maintain adequate insurance coverage through 2026.

Despite recent interest rate cuts by the Federal Reserve, a disconnect remains between homeowner expectations and economic forecasts. While 32% of respondents believe mortgage rates will “meaningfully drop” in 2026, 74% indicated they would need rates to fall to 5% or lower to consider buying a new home.

Furthermore, 80% of homeowners expect home prices to increase in 2026, and an identical percentage expects maintenance costs to rise.

Sean Harper, CEO of Kin, offered a tempered outlook in the report, suggesting that while costs remain high, the volatility of previous years may subside.

“We went through a period of economic instability, but it was driven by macroeconomic factors like inflation and interest rates that have since been absorbed,” he stated in the report. 

Harper predicts a more stable market for premiums in 2026 as inflation becomes more predictable, noting that substantial premium increases “won’t be the story in 2026” to the same degree they were in 2024.