Firefighters said they were having trouble battling the blazes because they were unable to get water hoses to the houses through the flooded streets, and high 40 mph wind gusts were creating the possibility that they could lose all the homes along that stretch of beachfront property, WCVB reported.
The storm has also dropped record snow in places such as Raleigh, N.C., (7.1 inches) and Atlanta (1.2 inches), according to the National Weather Service.
New York's Central Park has received about 17 inches and another 2 to 4 inches are still possible.
The extreme weather conditions were accompanied by thunder and lightning in Manhattan.
Maryland, Virginia and North Carolina declared states of emergency.
New Jersey's acting governor, State Senate President Steve Sweeney, declared a state of emergency Sunday night as the state was expected to get a foot of snow by midday today.
Lyndhurst, N.J., has received a snowfall total of 29 inches.
Rhode Island and most of eastern Massachusetts, including Boston, have also issued a blizzard warning, with 15 to 20 inches of snow expected.
Boston has declared a snow emergency, with another 8 to 12 inches of snow possible in addition to the 6 to 8 inches the city has already received.
Forecasters said the snow will continue to calm down in Philadelphia, Washington D.C., and New York into the morning hours today.
Boston is expected to have snow until about noon while Portland, Maine, will see more than a foot a snow into the early and mid-afternoon.
But winds of 35 to 60 mph will continue until mid-afternoon in New York and Philadelphia, to southern New England.
In Cape Cod and coastal Maine, residents can expect winds between 60 to 70 mph.
While the snow slowly diminishes today, some airports are expected to reopen in the afternoon.
New York's LaGuardia is expected to reopen tomorrow and JFK at 4 p.m.
Newark International is expected to reopen at 4 p.m.
Airlines have grounded hundreds of flights traveling in and out of East Coast airport since Sunday, including 1,400 cancellations at New York City-area airports.
United Airlines canceled dozens of Sunday departures from Newark, Philadelphia, LaGuardia and JFK, Boston and other airports.
AirTran and Southwest Airlines also canceled flights, mostly in or out of Washington Dulles, Baltimore and Newark.
Delta Air Lines spokesman Kent Landers said the airline proactively canceled about 850 mainline and regional flights system wide today because of the weather.
"Most cancelations are concentrated from the Carolinas through New York," he said.
Continental Airlines released a statement saying, "We have pre-cancelled about two hundred and fifty flights and we are continuing to monitor the storm's progress and its full potential impact on our operations."
Stranded passengers can take solace in that most airlines are waiving fees for one-time changes in affected areas.
Passengers are being encouraged to make travel changes via the carriers' websites.
Airline passengers are feeling the effects of the storm all across the country.
"I had a flight at 1 p.m. and it's all right to get to Vegas but from Vegas to Philadelphia it's stopped," Adrian Mulroney told ABC News.
Dozens of car crashes were reported across the south, according the Associated Press.