Homeownership costs in the US surged 26% since the start of 2020
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The cost of owning a home in the U.S. has skyrocketed since 2020, putting a key tenet of the American dream out of reach for millions.
New findings published by Bankrate show the average annual cost for owning and maintaining a typical single-family home – not including mortgage payments – is $18,118. That marks a stunning 26% increase from just four years ago, when the same expenses totaled about $14,428 annually.
The calculation takes into account property taxes, homeowners insurance premiums, home maintenance costs and energy, internet and cable bills.
«Everything has gotten more expensive in the past four years,» the report said.
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Homes in the Issaquah Highlands area of Issaquah, Washington on April 16, 2024. (Photographer: David Ryder/Bloomberg via Getty Images / Getty Images)
Chronic inflation has pushed up the cost of many homeownership expenses, particularly insurance premiums, which are up nearly 40% since 2019.
«Insurance costs are another factor squeezing homeowners,» the report said. «Annual premiums have been soaring, driven by rising home values, increasing construction costs and natural disasters.»
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Although high inflation has slowed, the price of most everyday goods is far more expensive than it was just a few years ago. On top of that, Americans are finding that their dollar just doesn't go as far as it once did.
Home prices have also spiked in recent years for several reasons.
Years of underbuilding fueled a
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