Key Points:

• The average monthly cost of owning a single-family home, including mortgage payments, taxes, insurance and utilities, increased 4.6% in 2024 to $1,789—a slower increase than in the prior two years.
  
  
• Day‑to‑day ownership costs—taxes, homeowner’s insurance, and utilities—increased just 2.6 percent, the slowest growth since 2020.
  
  
• Insurance remained the main source of pressure, while utilities delivered the clearest relief after sharp increases earlier in the pandemic.
  
  

"The pandemic‑era surge in taxes, insurance, and utility costs appears to have passed."

After several years of sharp increases, growth in homeownership costs moderated in 2024, suggesting the most intense of pandemic-era cost pressures may be easing. Based on American Community Survey data, single-family homeowners paid an average of $1,789 per month in ownership costs—including principal, interest, taxes and insurance, often shortened to PITI, along with utilities and other housing-related costs—in 2024, up 4.6 percent from a year earlier and a smaller increase than in the prior two years.¹ 

Much of that increase reflects higher mortgage principal and interest payments among the relatively small share of buyers and move up sellers who took on larger loans at higher interest rates. For most homeowners—those who own their homes outright or kept their existing mortgage—the more relevant costs are “day-to-day” expenses, like property taxes, insurance, and utilities. Those expenses increased 2.6 percent in 2024, the slowest pace since 2020. 

However, national averages mask meaningful differences across markets. Across the 50 largest metropolitan areas, we examined where pressure on the day-to-day costs of homeownership remained elevated and where it has eased more quickly.

Homeowner’s Insurance Premiums: Still Rising, but Slowing

Homeowner’s insurance remained the largest source of upward pressure on ownership costs in 2024, amid higher construction costs and increased weather-related risk. Nationally, premiums jumped 11 percent to $147 per month. While still sizable, this is a slowdown from the 16.3 percent surge in 2023, suggesting that insurance premiums are stabilizing. 

Some of the steepest increases occurred in markets where insurance costs were already high. In storm  and hail prone metros, such as Dallas and Denver, premiums climbed roughly 17 percent, pushing average monthly costs above $230. In wildfire exposed California markets, including Los Angeles and San Diego, premiums increased about 16 percent as insurers pulled back from high-risk areas, lifting monthly costs above $160. 

Property Taxes: The Boom Sends Its Bill

Property tax growth also slowed in 2024. Nationally, property tax costs increased 2.7 percent, down from 4.2 percent in 2023 and the slowest pace of growth since 2021, reflecting cooler house price appreciation. In markets that experienced stronger house price gains during the pandemic, however, reassessments continued to drive larger increases. In pandemic boomtowns, such as Las Vegas, Denver, Raleigh, N.C., Tampa, Fla., and Orlando, Fla., property taxes jumped roughly 8 to 9 percent—well above the national average.

Utilities: Relief Reaches the Meter

The cost of utilities provided day-to-day homeownership cost relief in 2024. Nationally, utility costs fell 0.7 percent after surging nearly 18 percent in 2022 and rising again in 2023. Lower natural gas and fuel prices more than offset continued increases in electricity and water costs, though utility costs remained well above pre-pandemic levels.

The relief was most pronounced in Midwest markets, where utility costs fell 2.7 percent on average. Indianapolis and Minneapolis experienced the largest declines of 9.6 percent and 8.1 percent, respectively. In contrast, utility costs in the West continued to rise—up 1.9 percent on average—though the pace slowed from 2023.

More Relief Ahead?

After slowing in 2024, further easing may be on the way. Slower house price growth in 2025 should help moderate property tax increases as assessments adjust. Insurance premium growth appears to have stabilized nationally, though higher risk markets remain vulnerable to further hikes. Utilities may provide additional relief, but remain the most volatile component of ownership costs.

Taken together, these trends suggest the pandemic era surge in taxes, insurance, and utility costs has likely passed. While still elevated, slowdown in theses costs gives household incomes a better chance to catch up with the ongoing cost of owning a home.

^{[1] Estimates are based on the most recent American Community Survey microdata, which run through 2024.}