Homeownership costs spike as insurance premiums, other fees rise
Homeowners have faced a sharp rise in monthly costs over the past five years, reaching new highs in 2024, according to a recent report.In 2024, the median monthly ownership costs for U.S. homeowners with a mortgage increased to $2,035 from the inflation-adjusted $1,960 in 2023, according to data from the American Community Survey (ACS) that was released by the U.S. Census Bureau.That 3.8% increase, driven largely by higher mortgage payments and insurance fees, outpaced the 3% rise recorded between 2022 ($1,902) and 2023.Monthly costs have risen 26% since 2019, when the typical monthly cost for mortgage holders was $1,609, according to Realtor.comMORE LUXURY HOMEBUYERS PAYING WITH CASH THIS YEAR, REPORT SAYS"One way we measure housing affordability is based on how much households spend on selected costs such as mortgage payments, insurance, taxes, utilities and various fees," Jacob Fabina, a Census Bureau economist, said. "In 2024, the median percentage of income householders with a mortgage spent on these costs was 21.4%, which points to an increased burden on homeowners."Homeowners with a mortgage in California, Hawaii, New Jersey, Massachusetts and the District of Columbia faced the highest median monthly costs, according to the report. In 2024, those figures reached $3,001 in California, $2,937 in Hawaii, $2,797 in New Jersey, $2,755 in Massachusetts and $3,181 in the District of Columbia.
