More people own their homes free and clear, according to new Census Bureau figures. But homeowners who still have a mortgage have seen their monthly costs rise faster last year than anytime since at least 2022.
About 35 million U.S. households owned their places outright without a monthly mortgage as of 2024, according to the Census Bureau. Some 900,000 loans were paid off in 2024, with more loans paid in full in Vermont and New Mexico than anywhere else.
While those homeowners’ housing expenses dropped precipitously, owners who are still paying off their loans saw their median monthly owner costs increase 3.8%, from $1,960 in 2023 to $2,035 last year. The increase was primarily driven by higher mortgage costs and insurance fees.
About three out five owned houses had a monthly mortgage payment in 2024. Census includes mortgage payments, insurance, taxes, utilities, and various fees when determining owner costs.
“In 2024, the median percentage of income householders with a mortgage spent on these costs was 21.4%, which points to an increased burden on homeowners,” said Jacob Fabina, a Census Bureau economist.
The areas with the highest monthly housing costs for those with a mortgage are California ($3,001), Hawaii ($2,937), New Jersey ($2,797), Massachusetts ($2,755), and the District of Columbia ($3,181).
One of the fees Census uses to calculate monthly costs are owner association dues. Of the nation’s 86 million owned houses, 21.6 million of their owners paid either a homeowners or condominium association fee last year.
Overall, the monthly median for that charge last year was $135. But owners without a mortgage paid $184. However, the percentage of households who paid these fees was not equally distributed across the country.
Nevada (51%), Florida (44%), and Arizona (45%) had the highest proportions of owners who reported paying monthly or quarterly dues. On the other hand, Rhode Island (10%), South Dakota (10%), Wisconsin (10%), Maine (8%), and North Dakota (8%) had the smallest shares.
Although they don’t have a mortgage and don’t have to pay fees, renters are paying more, too.
According to the Census Bureau’s American Community Survey, the median gross rent (rent plus the cost of utilities) increased 2.7%, from $1,448 in 2023 to $1,487 last year. Despite the increase, though, the median percentage of income going toward rent did not increase in 2024, remaining at 31%.
