So you bought a little slice of the American dream AKA a home. 🏡 We hope it has a white picket fence because that’s charming AF. 🤗
You know what’s not so prince charming? Home values creeping up faster than Americans can land bigger paychecks. 📈 We’re breaking it all down more gracefully than that Australian breakdancer. 🫣
Here’s Five Fast Facts on the impact of rising home prices:
- 🏘️ Home Sweet Home - Home prices are rising quicker than incomes. Recent data shows that more than 1 in 4 homeowners with mortgages are considered “cost-burdened.” That means they spend over 30% of their income on housing costs.
- 💸 The Tax Man Cometh- A rise in home value is a good thing if you’re getting ready to sell, but maybe not so good if you’re staying put. As a home’s value increases, so do your property taxes. Between 2019 and 2023, homeowners who had their properties reassessed saw a median tax increase of 25%.
- 😵💫 Premium Party Pooper - Home insurance rates are also on the rise. Between 2021 and 2023, the average home insurance premium rose by 20%. Experts estimate it will increase by another 6% by the end of 2024. Which states saw the biggest increases? Florida, Louisiana, Texas and Colorado, mostly due to extreme weather.
- 🧾 That’ll Cost You - Shopping for a new home? Ask your realtor for a history of costs associated with any homes you’re interested in. Get a full breakdown that includes taxes, insurance, and utilities. Also check to see if your state has programs in place to restrict yearly property tax increases.
- 📞 Use a Lifeline - Having a tough time paying your mortgage? Call your lender and explain your situation. Depending on whether things are temporary or permanent, they may be able to modify your loan or put you on a repayment plan. If your home insurance is sky high, check other companies for a cheaper rate.
🔥Bottom line: Another option for those struggling with mortgage payments: contact the Department of Housing and Urban Development. They provide counseling services and you may qualify for one of their programs. Did you know that almost 40 million workers make less than $17 per hour? Yep, read up on that here.
Has your home increased in value?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
