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Nor’easter and strong El Niño raise winter weather risks for homebuilders
NOAA projects a 75% chance El Niño peaks as the strongest weather event since 1950, while U.S. storm losses have already topped $35 billion through mid-August.
HousingWire reports that NOAA projects a 75% chance El Niño will become the strongest weather-related event since 1950, with the forecast covering its expected October-to-December peak.
The outlet also points to NOAA indicating that while El Niño can suppress Atlantic hurricane activity, it does not reduce the housing sector’s exposure to weather losses, and it may increase winter storm volatility in other regions.
HousingWire says storm-related losses in the U.S. have already topped $35 billion through mid-August, and it cites AccuWeather estimates of $10 billion to $13 billion in total damage and economic losses from the late-September nor’easter that hit coastal North Carolina and pushed into New England.
With builders potentially facing construction delays, higher carrying costs, and tighter insurance terms, HousingWire notes the likely effect would further strain homebuilders that are already dealing with soft demand, elevated financing costs, labor shortages, and tighter margins.