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Texas homeowners insurance costs reduce affordability for many households
With insurance included in the cost of homeownership, nearly two-thirds of Texas households cannot afford the median-priced home in their county, driving longer sales timelines for attached homes.
Mortgage News Daily highlights how insurance is increasingly weighing on housing affordability in Texas, citing research from the Kinder Institute. The analysis finds that when homeowners insurance is factored into the cost of homeownership, nearly two-thirds of Texas households can no longer afford the median-priced home in their county.
The article notes that condominiums and townhomes have often served as an entry point for affordability, but that trend is being undermined. Rising HOA dues, higher insurance costs, stricter lending requirements, and higher mortgage rates are making attached homes less attractive to buyers.
As affordability erodes, Mortgage News Daily says attached homes are taking considerably longer to sell than detached homes. The piece also points to borrower sentiment in the servicing market, referencing J.D. Power’s 2026 U.S. Mortgage Servicer Satisfaction Study.
According to the same outlet, the J.D. Power study found 86 percent of borrowers are likely to use their current servicer again, even as financial stress and borrower needs become more complex. The challenge described is converting that trust into retention through timely communication and technology when a borrower’s situation changes.