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If the challenge of scraping enough money to buy a home in the U.S. weren't enough amid painfully high real estate prices, the cost of owning a home is also surging.
The inflation-adjusted median monthly cost of homeownership in 2024 rose to $2,035, up neary 4% from $1,960 in 2023, according to new Census Bureau . That cost encompasses monthly mortgage and insurance payments, taxes, utilities and other fees.
The main factors behind the increase in homeownership costs: higher mortgage rates, fees and insurance costs.
"Rising insurance premiums and [homeowners association]/condo fees are the behind-the-scenes culprits for this increase outside of the basic increases to mortgage rates and home prices we've seen since 2019," Realtor.com senior economist Joel Berner said in a statement.
The typical condo or HOA fee in 2024 was $135, Census found. The median annual cost for property insurance in 2024 was $1,348.
"It's not always clear to prospective homebuyers to budget for these costs since they sit on top of the basic principal and interest payments on a home, but these costs are rising and are a significant portion of what homeowners pay every month," he added.
Millions of homeowners also face , driven largely by the growing power requirements of artificial intelligence, data centers, electrification and manufacturing.
A recent LendingTree found that residents in the 50 largest U.S. metro areas spend more than $450 a month on utilities, up 24% from 2019. Costs were highest in Boston, Massachusetts; New York, New York; Providence, Rhode Island; and Philadelphia, Pennsylvania, the personal finance site found.
Homeowners in the District of the Columbia faced the highest median monthly costs in 2024, at $3,181, according to the Census survey. Others U.S. states with high homeownership costs California, where residents paid over $3,000 a month for the typical home; Hawaii ($2,937); New Jersey ($2,797); and Massachusetts ($2,755).
Renters also face rising costs. In 2024, the median gross rent across the U.S. was $1,487, up 2.7% from $1,448 the previous year, the figures show.
