Most conversations about housing affordability start with home prices. It’s the easiest part of the equation to understand and compare to years gone by. After all, anyone who bought a house even a few years ago can see that prices are higher today than they were then. Mortgage rates are usually next up. Higher rates aren’t quite as easy to quantify but everyone knows when rates go up so does their prospective mortgage payment. That’s why home prices and mortgage rates are always the top two topics in any talk about housing affordability. But these days, there are other factors vying for the attention of potential home buyers. In fact, according to one recent analysis, there are two specific housing costs that combined now make up just over 20 percent of monthly mortgage payments across the country. The costs? Homeowners insurance and property taxes. The two are becoming an increasing share of monthly payments and – in some states – they can add hundreds, or thousands, of dollars to your monthly payment. (source)
