The financial burden of owning a home in the United States has reached unprecedented levels, according to two reports released this week. Mortgage rates are hovering near 2023 highs, while the ancillary costs of homeownership—insurance, maintenance, and property taxes—have climbed more than 30% over the past five years, squeezing household budgets across the country.
ATTOM, a property data firm based in Irvine, California, found that in the third quarter of 2026, homes were less affordable than their historical averages in 98% of the 583 U.S. counties analyzed. The national median home price dipped to $368,000, down from $370,000 in the prior quarter and $375,000 a year earlier, but that relief was largely offset by rising borrowing costs. The 30-year fixed mortgage rate reached 7.3% at the end of the quarter, with the 15-year rate at 6.6%, both approaching levels last seen in 2023.
ATTOM's affordability index measures whether the income needed to cover principal, interest, property taxes, homeowners insurance, and mortgage insurance on a median-priced home—assuming a 20% down payment and a 28% maximum front-end debt-to-income ratio—is within reach of the average wage earner. By that metric, residents in 80.1% of the counties analyzed could not meet the guideline, based on Bureau of Labor Statistics wage data.
Regional disparities are stark. In Orange County, California, major ownership expenses consumed 92.6% of typical wages, while Los Angeles and San Diego counties saw figures of 69.9% and 69.6%, respectively. By contrast, Harris County, Texas, required only 20.7% of wages, and Wayne County, Michigan, just 17.9%. Such dispersion is critical for advisors helping clients weigh relocation, retirement, or investment property decisions.
Separately, a Zillow and Thumbtack analysis released the same day found that ongoing homeownership costs—maintenance, insurance, and property taxes—now total $16,566 per year for the typical U.S. homeowner, or about $1,380 a month on top of any mortgage payment. That figure has risen approximately 32% over five years, though the pace has cooled to around 3% in the last year.
Insurance premiums are the fastest-rising component, jumping 54% nationally over five years, outpacing maintenance cost growth of 32% and property tax increases of 19%. In 19 of the 30 metro areas analyzed, premiums are up at least 50% over five years, with Dallas leading at 75%, followed by Tampa at 71%, Denver at 70%, and Houston at 69%. In Houston, Phoenix, Denver, and Nashville, insurance now costs more annually than property taxes—a shift that has real implications for how advisors model total housing costs in financial plans.
Maintenance remains the largest single cost category, representing roughly two-thirds of the total. Annual maintenance tops $12,000 in Seattle ($12,594) and Boston ($12,486). Los Angeles saw the sharpest year-over-year maintenance increase at 27%, reflecting wildfire recovery activity and high labor costs. The highest overall hidden cost burdens sit in coastal markets: $25,111 annually in New York, $24,383 in San Francisco, $22,915 in Los Angeles, and $22,096 in Boston. Even Phoenix, the least expensive market in the analysis, runs $14,187 a year.
For advisors, these figures underscore the importance of factoring in hidden costs when advising clients on home purchases. A client buying a median-priced home nationally in Q3 2026 would need an annual income of approximately $90,191 to meet the 28% front-end ratio guideline, against a national average wage of $79,534—a gap of roughly $10,600. When the $16,566 in annual hidden costs is added, the true cost of ownership becomes even more daunting. As 7% mortgages force advisors to rethink home equity liquidity, and with household costs reshaping retirement saving economics, the data suggests that clients across income levels may be underestimating what homeownership actually costs. Family balance sheets often harbor hidden concentration risks, and housing is no exception. Retirement crisis concern hits 80% as debt and inflation erode savings confidence, making it all the more critical for advisors to incorporate these costs into long-term planning.
