For many Texans, the price of a house is no longer the only number determining whether homeownership is within reach: A new housing report found that after accounting for homeowners insurance, the median-priced home in a household’s county falls outside the budget for nearly two-thirds of Texas households, making insurance a major affordability barrier of its own.
Here’s what to know
Texas Public Radio reported that estimate came from the seventh annual State of Housing report, a collaboration between Rice University’s Kinder Institute for Urban Research and Texas 2036.
According to the outlet, fast-rising homeowners insurance premiums are becoming an increasingly important part of the housing affordability challenge across Texas.
Households across the state are having to devote more of their income to housing, leaving less money available for essentials such as food, health care, and transportation.
More background
Housing affordability is often framed in terms of home prices, mortgage rates, and down payments. This report points to another growing pressure point: the cost of insuring a home after it is purchased.
Worsening, more frequent extreme weather events are also playing a major role in the price and availability of home insurance, with wildfires, floods, and extreme storms all contributing to the growing crisis.
What can be done?
Local leaders, housing advocates, and policymakers may need to treat insurance costs as a central affordability issue rather than a secondary concern.
Homebuyers can shop for insurance early before deciding what is truly affordable. Looking only at a listing price or mortgage estimate may give an incomplete picture of the real monthly cost.
Current homeowners can also review their policies carefully, compare available options, and make sure they understand how premium changes affect their household budget. Those steps may not eliminate the broader market pressures, but they can help families avoid costly surprises.
If insurance premiums continue to climb, more middle-income Texans and homeowners nationwide may find homeownership slipping further out of reach, even when a home itself appears reasonably priced.
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