Spiking insurance costs are cutting into Salt Lake's housing affordability
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Home insurance costs made up 6.8% of the average mortgage payment in the Salt Lake metro in December, up sharply from 4.8% three years earlier.
Why it matters: Rising insurance costs could put homeownership further out of reach in Salt Lake's already-pricey housing market.
The big picture: Insurance still makes up a smaller share of housing costs in Salt Lake than nationally — but it's rising faster here, according to ICE Mortgage Monitor, a real estate 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.
By the numbers: Salt Lake's average monthly insurance payment ballooned from $61 to $135 over the past decade.
- Nationally, the average jumped from $106 to $191.
Reality check: It's not just homebuyers feeling the pinch in their budgets.
- 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 Utah expected to see a 9% increase.