In the past two years, Denise Matthews’s car has been totalled twice while parked outside of her home in Charleston, South Carolina. And she’s not alone.
“Pretty much half this block has a new car,” Matthews shared with the Wall Street Journal [1], revealing that many of her neighbors also had cars that were badly damaged while parked on Ashley Avenue.
Must Read
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
- I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP
While it’s easy to assume the damaged cars were the result of careless driving in the neighborhood, the real culprit is the frequent flooding in Charleston. In fact, flooding on Ashley Avenue has been so frequent in recent years that locals have given the street the nickname “Lake Ashley.”
As Denise explained to the WSJ, local “idiots” and “yahoos” often speed through the neighborhood when it’s flooded, with some of them towing friends on wakeboards.
These speeding cars have been known to create wakes in the floodwater that leave cars parked on the street with significant water damage. In order to address this issue, the city of Charleston passed an ordinance in 2024 that declares any street with at least six inches of floodwater a “no wake” zone.
Denise and her husband, John, purchased their home on Ashley Avenue for $1.11 million in 2020, and despite the frequent flooding, the couple has no plans to leave any time soon. “I love absolutely everything about it here,” Denise told the WSJ. “The flooding doesn’t come into play in our minds.”
Many others seem to share this mindset. In fact, despite the city’s frequent flooding, Charleston is quickly turning into one of the hottest real-estate markets in the U.S.
Weathering the storm in Charleston
According to data from the National Weather Service — as cited by the WSJ — nearly 75% of the major ocean floods that have hit Charleston between 1923 and 2024 have occurred in the last ten years. In fact, a 2020 city assessment of the impact of climate change predicted a three-foot rise in sea level between 2030 and 2100, which could render 15,000 Charleston properties inaccessible.
But as the WSJ notes, that high risk of flooding has not dissuaded people from moving to the city. Median home sale prices have climbed 39.3% from 2020, while historical homes downtown have skyrocketed 77.1%, with the median sale price hitting $1.2 million.
Some residents have opted for flood-protection measures to try and save their homes from damage, and often at great cost. These measures can include installing cisterns, French drains or pump systems in crawlspaces and basements. Other homeowners have taken more drastic measures like elevating their entire house, which can cost as much as $500,000.
The city has also taken preventative action by repairing its High Battery sea wall and adding 2.5 feet to the Low Battery sea wall, as well as installing and replacing check valves that control the sea-water flow in drainage tunnels.
But, as the WSJ notes, there are still plenty of residents who have left Charleston in recent years, and rising home insurance costs likely played a role in their decision to move.
"I saw things getting worse and worse, insurance-wise, and the possibility for having to do a complete rebuild and stuff like that,” Greg McCoy, who sold his home on Ashley Avenue in 2023, told the WSJ. “I was a little bit relieved to not have to think about the flooding anymore.”
Read more: This is how much US drivers saved on car insurance when they switched providers, according to a new Consumer Reports survey of 140,000 policyholders
How extreme weather affects home insurance
A recent CNN report on housing prices in the U.S. noted that while demand is high in the northeast, it’s cooling down in the Sun Belt. Florida, California and Texas are all seeing rising housing inventory, and real estate agents say that is in part due to rising insurance costs [2].
According to a report from The Conversation, insurance premiums in the U.S. have risen on average 34% between 2017 and 2023 [3]. But the regional picture is even more dramatic: premiums rose 59.9% in Texas, 43.7% in California and 43.2% in Florida during that same period.
All three of these states are prone to extreme weather events. In fact, insurance companies have even pulled back from some of these markets by canceling policies or not issuing new ones. In 2023, State Farm and Allstate pulled back from the home insurance market in California, citing wildfire risk and rising construction costs [3].
According to a New York Times report on the burgeoning home insurance crisis, in 2024 there were at least 27 weather events in the U.S. that resulted in damages totaling at least $1 billion [4].
Should you move to a place like Charleston?
There is a lot to consider when debating a move to an area where flooding — and the possibility of other severe weather events — are just a part of life.
As the U.S. housing market appears to be cooling in the south, the possibility of lower home prices could be tempting. However, with the rising costs of home insurance in these areas, that discounted home may not be worth the risk. As one South Florida real estate agent told CNN, “I’ve had buyers cancel deals after they got the insurance quote. [2]”
SafeHome.org published an analysis of data from Climate Central, which found that nine of the 10 most at-risk states — which are prone to extreme weather events including heat waves, drought, wildfires, coastal flooding and inland flooding — are in the south [5].
If you are considering moving to a part of the country that is prone to extreme weather events, be sure to look into the number of weather events that have impacted the area in the last 20 to 30 years, with a careful focus on whether the frequency has increased in the last decade or so. You’d also be wise to look into home insurance rates in the area you are considering, and whether insurance companies will offer coverage for the type of extreme weather events and natural disasters that can occur.
Denise and John seem to be ok with the frequent flooding in Charleston, but if you don’t share their tolerance for extreme weather events — and the costs that can come with them — you may want to find another area that you can call home.
What to read next
- How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
- There’s still a 35% chance of a recession hitting the American economy this year — protect your retirement savings with these 5 essential money moves ASAP
- This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchase. Here’s how to buy the coveted asset in bulk
- Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Join 200,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Article sources
At Moneywise, we consider it our responsibility to produce accurate and trustworthy content people can rely on to inform their financial decisions. We rely on vetted sources such as government data, financial records and expert interviews and highlight credible third-party reporting when appropriate.
We are committed to transparency and accountability, correcting errors openly and adhering to the best practices of the journalism industry. For more details, see our editorial ethics and guidelines.
[1]. Wall Street Journal. “Charleston Floods Are Getting Worse. For These Residents, It’s Worth the Risk.”
[2]. CNN Business. “America’s housing market gained $20,000,000,000,000 in 5 years”
[3]. The Associated Press. “California insurance market rattled by withdrawal of major companies”
[4]. New York Times. “The Home Insurance Crisis Is Getting Even More Expensive”
[5]. SafeHome.org. “The Best & Worst States for Climate Change in the U.S.”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.