Summary
A study by Neighbors Bank found that U.S. homeowners are spending more on property taxes and home insurance, with Florida and Illinois having the highest costs. These expenses now account for about 21% of an average monthly mortgage payment. Rising costs are adding to the financial challenges faced by homeowners alongside high home prices and mortgage rates.
Key Facts
- U.S. homeowners are paying more for property taxes and home insurance.
- Florida and Illinois have the highest combined costs for these expenses.
- Property taxes and insurance make up 21% of an average monthly mortgage payment in the U.S.
- Pensacola, Florida, homeowners face the highest burden at 43.6% of their mortgage payment.
- The median property tax bill increased by 30% from 2019 to 2024.
- Home insurance costs rose over 75% from 2019 to 2024, due to natural disasters.
- Honolulu, Hawaii, and some cities in Utah and Arizona have lower related costs because of low property taxes and stable insurance sectors.
