Last Thursday, on September 11th, the report from the American Community Survey (ACS) released by the U.S. Census Bureau revealed that the median monthly homeownership costs for homeowners with mortgages in the United States rose from $1,960 in 2023 to $2,035 in 2024, reaching a historic high last year.
The annual report titled “The Cost of Homeownership Continues to Rise” indicated that the overall increase in costs such as rising mortgage rates and insurance premiums contributed to this phenomenon.
Economist at the Census Bureau, Jacob Fabina, stated, “One of the ways we measure housing affordability is by looking at a household’s specific expenses, such as mortgage payments, insurance, taxes, utilities, and various fees. In 2024, the median percentage of income spent on these costs for households with mortgages was 21.4%, indicating an increased burden on homeowners.”
From 2023 to 2024, the median cost of owning a home increased by 3.8%, higher than the 3.0% increase from 2022 to 2023. This growth was primarily driven by the rise in mortgage costs and insurance fees.
In various states and the District of Columbia, the highest monthly mortgage costs were found in:
– California: $3,001
– Hawaii: $2,937
– New Jersey: $2,797
– Massachusetts: $2,755
– District of Columbia: $3,181
In several major metropolitan areas like San Francisco, Los Angeles, New York, and Boston, purchasing a mid-priced home requires an annual income exceeding $200,000, while in San Jose, an income of over $370,000 is needed.
According to the report, in 2024, over half (59.7%) of homeowners with mortgages needed to make monthly payments, while the number of homes without mortgages also increased. In 2024, the number of mortgage-free homes was approximately 35 million, around 900,000 more than in 2023.
Between 2023 and 2024, Vermont (8.9%) and New Mexico (8.7%) saw the largest increases in the number of mortgage-free homes among states.
Additionally, based on data from the U.S. Census Bureau, out of 21.6 million homeowners, about 86 million people paid apartment fees or homeowners’ association fees (HOA). On average, these fees amounted to $135 per month.
Meanwhile, renters also faced higher rental costs. The report data showed that after adjusting for inflation, the median total rent, including utilities, increased from $1,448 in 2023 to $1,487 in 2024, a 2.7% rise.