Nearly Two-Thirds of Texans Can’t Afford a Typical Home After Insurance Costs
Summary
A new study shows that nearly two-thirds of Texas households cannot afford to buy a typical home in their area after adding the cost of homeowners insurance. Insurance rates in Texas have risen sharply in recent years due to more expensive materials and extreme weather, making housing less affordable even though home prices and incomes have also increased.Key Facts
- Almost 64% of Texas households cannot afford the median-priced home in their county once insurance costs are included.
- Homeowners insurance premiums in Texas rose from $2,296 in 2019 to $2,983 in 2024, a 30% increase after adjusting for inflation.
- Median home value in Texas rose 31% from 2019 to 2024, reaching $169,250.
- Median household income in Texas grew only 3% over the same period, to $65,035, which is still below what is needed to afford the median home.
- Homeowners insurance now takes up about 4.65% of median household income in Texas counties, up from 3.68% five years earlier.
- Extreme weather and higher building material costs are leading causes of rising insurance premiums.
- Even small future increases in insurance costs could make homeownership unaffordable for thousands more Texas households.
- The study considers housing "unaffordable" if a household spends more than 30% of its income on home costs including insurance.
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