Cost of Owning a Home Up 26% Under Biden

Caught in the crossfire of surging costs and dwindling supply, the American dream of homeownership has morphed into an elusive mirage for millions, as the price of owning a home skyrockets beyond reach.

The American dream of owning a home has become increasingly elusive since Joe Biden became President in 2020, with costs soaring to unprecedented levels, making it inaccessible to millions.

Recent data from Bankrate reveals that the average annual expenses for owning and maintaining a typical single-family home, excluding mortgage payments, now stand at $18,118. This staggering figure represents a staggering 26% surge from just four years ago, when these costs totaled approximately $14,428 annually.

This calculation encompasses various expenditures, including property taxes, homeowners insurance premiums, home maintenance expenses, as well as bills for energy, internet, and cable services.

According to the report, "Everything has become pricier over the past four years."

The relentless inflationary pressure has particularly inflated the costs associated with homeownership, notably insurance premiums, which have skyrocketed by nearly 40% since 2019.

"Insurance expenses are another burden weighing heavily on homeowners," notes the report. "Annual premiums have soared due to escalating home values, rising construction costs, and the impact of natural disasters."

Although inflationary pressures have somewhat eased, the cost of everyday necessities has significantly risen compared to just a few years ago. Coupled with this, the purchasing power of the dollar has diminished, exacerbating the financial strain on households.

Moreover, home prices have surged in recent years due to various factors. Years of inadequate construction have led to a shortage of homes nationwide, a crisis compounded by the sharp increase in mortgage rates and expensive building materials.

According to a separate report from Realtor.com, the available housing supply remains depleted by a staggering 34.3% compared to pre-pandemic levels in early 2020.

The surge in mortgage rates over the past three years has also created a phenomenon termed the "golden handcuff" effect in the housing market. Many sellers, who secured historically low mortgage rates of 3% or less during the pandemic, have been reluctant to sell, further constraining the housing supply and leaving prospective buyers with limited options.