Nationwide, 9% of single-family mortgages allocate over half of the payments to taxes and insurance, up from under 4% in 2014
Homeownership is becoming costly, with ballooning property taxes and home insurance accounting for over 50% of the mortgage payments for thousands of Americans.
Natural disaster losses and rising repair costs have pushed insurers to hike rates, while recent surges in home values are boosting tax bills.
In September, property taxes and insurance accounted for 32% of the average single-family mortgage payment—the highest share since tracking began in 2014, according to Intercontinental Exchange (ICE).
Nationwide, 9% of single-family mortgages allocate over half of payments to taxes and insurance, up from under 4% in 2014.
The share is even higher in some metro areas. At least 25% of borrowers in Rochester, Syracuse, Omaha, New Orleans, and Miami now spend more than half their monthly mortgage payment on insurance and taxes, these expenses, per ICE.
In 2015, property taxes, home insurance, and flood insurance cost some homeowners in New Orleans $725 a month. Now, they pay $2,448 monthly, which outpaces some people’s mortgages.
While mortgage rates may fluctuate, experts say taxes and insurance costs are unlikely to reverse. These are straining budgets for older homeowners and retirees on fixed incomes.
As a result
Some choose to sell their homes, while others opt to forgo insurance altogether.
In Miami, 21.2% of homeowners opted out of insurance in 2023, up from 14.5% in 2021. This decision is risky, particularly in natural disaster-prone regions, as rebuilding can be expensive.