The Cost of Homeownership Continues to Rise

SEPT. 11, 2025 - The median monthly owner costs for U.S. homeowners with a mortgage increased to $2,035 in 2024 from $1,960 (inflation-adjusted) in 2023, according to new American Community Survey (ACS) 1-year estimates released today by the U.S. Census Bureau.

"One way we measure housing affordability is based on how much households spend on selected costs such as mortgage payments, insurance, taxes, utilities, and various fees," said Jacob Fabina, a Census Bureau economist. "In 2024, the median percentage of income householders with a mortgage spent on these costs was 21.4%, which points to an increased burden on homeowners."

Median monthly owner costs increased 3.8% from 2023 to 2024, more than the increase of 3.0% from 2022 ($1,902) to 2023. This increase was primarily driven by higher mortgage costs and insurance fees.

Among states and the District of Columbia, homeowners with a mortgage in California ($3,001), Hawaii ($2,937), New Jersey ($2,797), Massachusetts ($2,755), and the District of Columbia ($3,181) had the highest median monthly costs.

More than half of owned homes (59.7%) had a monthly mortgage payment in 2024. The number of homes owned free and clear, meaning without a monthly mortgage payment, climbed. There were about 900,000 more owned homes paid off in 2024 (about 35 million total) than in 2023 (34.1 million total).

Among the states, Vermont (8.9%) and New Mexico (8.7%) experienced two of the largest increases (not significantly different from each other) in the number of homes owned free and clear between 2023 and 2024.