As home insurance costs surge across much of the United States, a handful of states are projected to be outliers this year, with rates holding steady or declining.

A new report from Insurify, an online insurance marketplace, projects that the average U.S. home insurance rate will climb 6% this year, reaching $2,522 annually. However, the study found that states less vulnerable to climate change-driven extreme weather events are largely spared from steep rate hikes, while regions facing increased climate risks bear the brunt of rising premiums.

According to the report, South Dakota is the sole state expected to see a decrease, with rates projected to drop 3% to $2,488 per year. Six other states — Alaska ($1,117), Missouri ($2,697), North Dakota ($2,517), Texas ($4,437), Washington ($1,432), and West Virginia ($1,398) — are forecast to have no increase at all in 2024.

The Insurify report, which analyzed home insurance costs across all 50 states, points to the growing impact of climate change and natural disasters on insurance markets. While some regions grapple with soaring premiums due to increased risk from hurricanes, wildfires, and flooding, others remain relatively unscathed.

As Gen Z and Millennials continue to enter the housing market, their heightened climate awareness could reshape real estate preferences. The report noted that areas with high climate resiliency may become increasingly desirable, potentially at the expense of regions more vulnerable to climate change impacts.

Experts caution that the current stability in some states may not last, though. As climate patterns shift, areas previously considered low-risk may face new challenges. The insurance market remains highly responsive to changing weather patterns and disaster frequencies.