Mortgage Spending Sees Largest Increase Amid Affordability Pressures – NMP Skip to main content

Mortgage Spending Sees Largest Increase Amid Affordability Pressures

Feb 20, 2026
Mortgage Spending Sees Largest Increase

Housing, insurance, and utility costs pushed U.S. household bills to a record $5.03 trillion annually, consuming nearly half of the typical household’s income and underscoring ongoing affordability pressures nationwide

As essential costs continue to climb, new data from doxo highlights the persistent affordability challenges facing American households across income levels and regions.

According to doxo’s 2026 U.S. Household Bill Pay Report, U.S. households are spending a record $5.03 trillion annually on recurring bills, underscoring mounting financial pressure driven largely by housing costs, rising insurance premiums, and essential utilities.

The report found the typical U.S. household pays $39,468 per year — or $3,289 per month — on bills, consuming roughly 47% of annual income. Of that total, $24,997 annually goes toward the 13 most essential household expenses, including housing, auto loans, utilities, and insurance.

Housing remains the single largest financial burden, with mortgage payments accounting for $1.08 trillion annually, while rent totaling $740 billion, combining for nearly $1.82 trillion in housing costs alone. Mortgage spending increased by $145 billion year over year — the largest jump among all bill categories — highlighting ongoing affordability challenges.

Other major expense categories include auto loans at $484 billion annually and auto insurance at $253 billion. Utility costs also represent a significant burden, with electricity leading at $228 billion and total utility spending reaching $557 billion per year. Health insurance spending rose more than 7% year over year, continuing a trend of escalating premiums and out-of-pocket costs.

On a monthly basis, median household costs include $1,769 for mortgage payments, $1,453 for rent, and $480 for auto loans. Electricity, cable and internet, and auto insurance each add more than $100 per month to typical household budgets.

The findings are based on bill payment data from more than 10 million consumers across 97% of U.S. ZIP codes, reflecting actual household spending patterns nationwide. The report underscores the growing share of income devoted to essential expenses, particularly housing and insurance, which continue to outpace income growth and strain household finances.

About the author
Published
Feb 20, 2026
More Buyers Expect Higher Rates. Fewer Would Wait.

Veterans United’s survey finds less willingness to hold out for lower rates, but little change in purchase timelines

Oct 22, 2026
Mortgage Rate Lock-In: More High-Rate Loans, Few Signs Of A Thaw

With 30-year rates above 7% and nearly half of outstanding loans below 4%, originators face a stubborn obstacle to rebuilding repeat-buyer pipelines

Oct 22, 2026
Investor Homebuying Slows, Small Buyers Claim Biggest Share In 15 Years

Smaller investors accounted for 66.2% of investor purchases in the first half of 2026 and relied on cash much less often than mega-investors

Oct 22, 2026
California Home Sales Drop 6.5%, Prices Keep Climbing

September’s decline leaves originators competing for fewer purchases, while rising borrowing costs and limited new listings keep affordability under pressure

Oct 20, 2026
One In Three Americans Blame Lenders For Housing Crisis Ahead Of Midterms

Voters want lower taxes, insurance costs, and mortgage rates, but 63% doubt the election will improve housing

Oct 20, 2026
Rates Above 7% Shrink Buyer Budgets In Loosening Housing Market

Realtor.com finds 66 of 99 metros favor buyers or are moving that way, while rising financing costs have cut borrowing capacity 7.2% since late August for a fixed monthly payment

Oct 19, 2026