Insurance is taking up a larger portion of Raleigh homeownership costs
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Home insurance costs made up 8.8% of the average mortgage payment in the Raleigh metro area in December, up from 6.5% a decade earlier, data shows.
Why it matters: Rising costs for insurance and property taxes threaten to make homeownership unaffordable for many.
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 lift the cost of coverage, he tells Axios.
Zoom in: Rising insurance rates were a big theme of the Insurance Commissioner's race in North Carolina last year — especially a contentious request by the state's Rate Bureau to raise premiums by 42%.
- Ultimately, state Insurance Commissioner Mike Causey negotiated average rate increases of 7.5% in 2025 and 2026.
- "These rates are sufficient to make sure that insurance companies, who have paid out large sums due to natural disasters and face increasing reinsurance costs due to national catastrophes, have adequate funds on hand to pay claims," Causey said of the deal in January.
By the numbers: The U.S. average monthly insurance payment ballooned from $106 to $191 over the past decade, per the data.
- In the Raleigh metro area, it's gone from $85 a month to $161.
Reality check: It's not just homebuyers feeling the pinch in their budgets, which are already squeezed by high prices and mortgage rates.
- 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 2025 — with North Carolina expected to see a 6% increase.