Lower Home Prices Meet Rising Insurance Bills
Insurance now takes a larger share of mortgage payments, especially in several markets with falling prices.
Home prices are declining in some parts of the country, but insurance bills are shrinking the savings buyers might expect. The national median asking price dropped 1.4% in September from a year earlier, while the Northeast recorded a 3.8% decline. A buyer using 20% down and a 30-year loan at 7.3% would save about $33 monthly on principal and interest from the national price change. Insurance, however, rose roughly $17 per month on average over the same period.
Property coverage now costs the typical single-family mortgage holder $209 each month, up 8.7% year over year. It represents 9.6% of the average mortgage payment, compared with 7.2% in 2018. The pressure is sharper in some local markets. Minneapolis asking prices fell 4.1%, while insurance payments increased 13.1%. In Hennepin County, average annual coverage reached $4,545 after a 20.9% increase during the first half of 2026.
Other examples include Sacramento, where prices fell 2.6% as insurance rose 12.5%, and San Diego, where the figures were down 6.3% and up 12.4%. Florida’s statewide average reached $8,486 annually, while Collier County climbed to $10,052.
Why it matters: Buyers may see less monthly relief from lower prices because insurance can raise the recurring mortgage cost tied to a property.
- Realtor.com News