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.com

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“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.

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Vermont and New Mexico saw the largest increases in the number of homes that were paid off and owned free and clear between 2023 and 2024, according to the report. 

Aside from the typical mortgage and insurance costs, some homeowners also pay a homeowners’ association (HOA) or condo fees. The report from the Census Bureau indicated that approximately 21.6 million owned U.S. households, out of a total of about 86.6 million, paid either a condo or HOA fee last year. 

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The monthly median condo or HOA fee in 2024 was $135, though those fees differed between households with and without a mortgage. For instance, households with a mortgage paid a monthly median fee of $120, while those without a mortgage paid $184.

At the same time, renters were also hit with higher costs. The median gross rent, which includes the cost of utilities, increased 2.7% to $1,487 in 2024 from $1,448 in 2023, adjusted for inflation, according to the ACS.

Meanwhile, the median percentage of income going toward rent did not increase in 2024, staying at 31%.