As global warming contributes to the spread of wildfires, those fires lead to the destruction of homes, mortgage delinquencies and defects.

Loan application defects increased due to the wildfires of 2018 that ravaged California. Additionally, reconstruction costs have the potential to reach $8.5 trillion from the over 30.7 million homes that are at risk across the country, according to CoreLogic's 2019 Wildfire Risk Report.

Wildfires burned 8.8 million acres of land in 2018 alone — the sixth-highest total on record since the mid-1900s. In addition, the annual average of acres burned between 1970 and 1999 has more than doubled between the turn of the century and the present day. These trends are in direct correlation with climate change's impact. Younger generations take that into account when securing a loan and buying a house.

While all states face some risk of wildfire, that risk is highest for the 13 most westerly states, which are the most often affected. California led in total acreage burned last year with over 1.8 million, followed by Nevada's 1 million and Oregon's 897,262.

From Texas to California, these are the 15 most-at-risk metro areas with the highest wildfire reconstruction costs.

CoreLogic evaluated the combined number of single-family and multifamily residences at risk of wildfire damage by state, reconstruction cost, and associated losses from recent wildfires. It then ranked metro areas based on the combined values of high and extreme-risk residences.
NMN10152019-CoreLogic.png

No. 15 Houston, Texas

High- and extreme-risk reconstruction cost value: $6.27 billion
Total high- and extreme-risk residences: 36,004
Houston
Ryan Conine - stock.adobe.com

No. 14 Salinas, Calif.

High- and extreme-risk reconstruction cost value: $6.39 billion
Total high- and extreme-risk residences: 11,314
Salinas, Calif.
Landscape in Fort Ord National Monument, Salinas, California
Andrei - stock.adobe.com

No. 13 Redding, Calif.

High- and extreme-risk reconstruction cost value: $6.44 billion
Total high- and extreme-risk residences: 21,057
Redding, Calif.
The Sundial Bridge, in Redding, California.
jonbilous - stock.adobe.com

No. 12 Santa Fe, N.M.

High- and extreme-risk reconstruction cost value: $7.28 billion
Total high- and extreme-risk residences: 23,546
Santa Fe, N.M.
James - stock.adobe.com

No. 11 San Antonio, Texas

High- and extreme-risk reconstruction cost value: $8.43 billion
Total high- and extreme-risk residences: 30,696
NMN101818-san-antonio.jpg
River Walk in San Antonio Texas.
Leena Robinson/leekris - stock.adobe.com

No. 10 Colorado Springs, Colo.

High- and extreme-risk reconstruction cost value: $9.36 billion
Total high- and extreme-risk residences: 31,323
NMN081618-colorado-springs
Aerial view to Pioneers museum in Colorado Springs, Colorado
andreykr - stock.adobe.com

No. 9 Oxnard, Calif.

High- and extreme-risk reconstruction cost value: $10.17 billion
Total high- and extreme-risk residences: 19,555
Oxnard, Calif.
CARSTEN_SCHERTZER/Carsten - stock.adobe.com

No. 8 Truckee, Calif.

High- and extreme-risk reconstruction cost value: $10.85 billion
Total high- and extreme-risk residences: 31,987
Truckee, Calif.
Frank Munch - stock.adobe.com

No. 7 Denver Colo.

High- and extreme-risk reconstruction cost value: $15.32 billion
Total high- and extreme-risk residences: 49,734
NMN052218-denver.jpg
Denver Cityscape Colorado. Downtown Denver Skyline and the Mile High Stadium. Colorado, United States.
Tomasz Zajda - stock.adobe.com

No. 6 San Francisco, Calif.

High- and extreme-risk reconstruction cost value: $16.32 billion
Total high- and extreme-risk residences: 32,174
NMN100418-san-francisco.jpg
View of colorful San Francisco row homes looking down a steep city street
Andy Konieczny/Focqus, LLC - stock.adobe.com

No. 5 Austin, Texas

High- and extreme-risk reconstruction cost value: $16.35 billion
Total high- and extreme-risk residences: 536,984
austin-0920-adobe.jpg
a nice clear day by the lake in downtown Austin Texas
Brandon Seidel/Brandon Seidel - Fotolia

No. 4 Sacramento, Calif.

High- and extreme-risk reconstruction cost value: $27.5 billion
Total high- and extreme-risk residences: 68,056
Sacramento, Calif.
Sacramento, California.
Andy - stock.adobe.com

No. 3 San Diego, Calif.

High- and extreme-risk reconstruction cost value: $35.81 billion
Total high- and extreme-risk residences: 75,096
NMN101818-san-diego.jpg
San Diego, California, USA downtown city skyline.
SeanPavonePhoto - stock.adobe.com

No. 2 Riverside, Calif.

High- and extreme-risk reconstruction cost value: $40.94 billion
Total high- and extreme-risk residences: 108,787
NMN020718-riverside.jpg
Twilight view of the city of Riverside, from Mount Rubidoux Park, in Riverside, California.
jonbilous - stock.adobe.com

No. 1 Los Angeles, Calif.

High- and extreme-risk reconstruction cost value: $71 billion
Total high- and extreme-risk residences: 121,589
NMN020618-los-angeles.jpg
Aerial view of complex highway interchange in Los Angeles California.
Ron Chapple Stock/iofoto - Fotolia
MORE FROM NATIONAL MORTGAGE NEWS