Phoenix property insurance costs soar
Add Axios as your preferred source to
see more of our stories on Google.
Home insurance costs are taking up a larger share of monthly housing payments for Phoenix homeowners.
Why it matters: Rising costs for both insurance and property taxes threaten to make homeownership even more unaffordable.
The big picture: Nationally, a growing share of monthly payments is going toward insurance, and that's not expected to change anytime soon, according to ICE Mortgage Monitor, an industry data provider.
- The analysis looks at single-family homes with mortgages that have taxes and insurance escrowed.
Between the lines: More frequent natural disasters, plus rising costs to rebuild homes afterward, have hiked overall insurance costs, says Andy Walden, ICE's head of mortgage and housing market research.
- Rocketing home values also increase the cost of coverage, he tells Axios.
By the numbers: The average monthly insurance payment in Phoenix has doubled in the last decade, per the data.
- Arizona saw the highest home insurance rate cumulative increase in the country between 2019 and 2024, according to a LendingTree report released this year.
Reality check: It's not just buyers, who are already squeezed by high prices and mortgage rates, feeling the pinch.
- Soaring home expenses also burden homeowners, especially older people on fixed incomes, experts say.
What's next: Insurify, which helps people compare quotes from multiple providers, projects home insurance premiums will climb in every U.S. state by the end of this year — with Arizona expected to see a 8% increase.