The Homegrown Cost of Homeownership Index is a measure for analyzing and comparing total housing costs across locations.
Owning a home has always been a complex and evolving part of the American Dream. While homeownership symbolizes stability and success, its affordability has never been straightforward.
Most people focus on their monthly mortgage payment when calculating costs, but factors like taxes, insurance, and energy expenses can significantly impact the true cost of owning a home. In many cases, these additional expenses can account for as much as half of the mortgage payment—and they vary widely depending on location. With homeowners’ insurance premiums rising nearly 20% over the past three years and electricity prices increasing over 10% in 2022 alone, understanding the full scope of homeownership costs is more important than ever.
At Homegrown, we’ve analyzed housing characteristics of the Top 50 MSA, to understand the overall cost of homeownership for the median home price across four major costs factors:
Mortgage Payments - defined as annual mortgage payment for median home value assuming 20% down payment, 30-year fixed mortgage at 6.88%
Insurance - insurance quotes for median home price in each market (assumed 80% dwelling coverage)
Real Estate Taxes - defined as base annual tax payment for medium home value in MSA
Energy Costs - defined as the average energy costs for the median home in each market.