Property taxes and homeowners’ insurance are driving up monthly housing costs.
The cost of owning a home is climbing beyond mortgage payments, adding new pressure on household budgets and further limiting access to the housing market, according to a new industry analysis.
Escrow charges — which cover property taxes and homeowners’ insurance and are bundled into monthly mortgage bills — are emerging as a growing strain for U.S. homeowners and buyers alike. Those expenses now rank among the most significant threats to housing market participation in 2026, according to Cotality’s latest property market trends report.
Cotality found that non-mortgage housing costs rose roughly 30% in 2025. These expenses, while not part of the loan itself, are mandatory for homeownership and are typically collected by lenders through escrow accounts. The increases were most pronounced in states more vulnerable to natural disasters, where insurance premiums have surged.
The trend is expected to continue. Cotality projects homeowners’ insurance rates will climb another 8% nationwide in 2026, a pace faster than overall inflation. The rising costs could discourage prospective buyers from entering the market and make it harder for existing owners to manage monthly expenses.