5.5 Million Mortgage-Free Homeowners Spend 30% of Income on Housing as Annual Costs Top $21,486
Updated
Updated · The Washington Post · Nov 10
5.5 Million Mortgage-Free Homeowners Spend 30% of Income on Housing as Annual Costs Top $21,486
3 articles · Updated · The Washington Post · Nov 10
Summary
5.5 million U.S. homeowners without a mortgage still spend at least 30% of household income on housing, and 2.7 million devote at least half, according to newly released Census data.
Average non-mortgage ownership costs now run $21,486 a year, including $7,374 for maintenance, $5,649 for utilities, $4,427 for property taxes and $3,012 for insurance.
In 22 states, those annual costs exceed $20,000, and in five states including California and Hawaii they top $30,000, driven partly by high property values and weather-related risks.
Leo Chen of the University of South Florida said owners can sometimes cut bills by appealing tax assessments—potentially saving $500 to $2,500—or claiming exemptions worth more than $1,000; insurance discounts can trim premiums by 15% or more.
Housing costs above 30% of income, drawing down savings and delaying repairs are warning signs that downsizing may be safer than tapping home equity, though moving can mean transaction costs and higher mortgage rates.