Reality Of Rising Costs Of Homeownership June 2026

Often clients compare their mortgage payment, typically a low rate 30-year mortgage, to rent and ignore the other costs of home ownership that are not fixed. This includes:

• Property taxes – 31% increase (lower in CA but still going up each year)
• Insurance – 72% increase
• Maintenance – 85% increase
• Home improvements and emergency repairs – 175% increase

These costs have dramatically increase between 2019-2025 per a recent Wall Street Journal article. These costs have exceeded the increase in CPI over the same period of time.

If a homeowner is already stretching their budget on home ownership costs and do not maintain adequate savings or their income drops, they are vulnerable to needing to sell the house in perhaps a soft market. I call this being “house poor”.

Other costs are also increasing such as utilities and the big one of late are homeowners association dues.

There is often one spouse that wants to keep the home in a divorce. In CA, a court requires the buyout to be equally to one-half of the equity with no consideration for imbedded capital gains taxes, deferred maintenance or the costs of sale as these are considered hypothetical. Furthermore, the other spouse has to agree to stay on the mortgage to hold onto mortgages with very low fixed rates.

My advice to spouses who want to keep a home is to fully understand the economics of the buyout and short, medium and long-term implications of home ownership and their post-divorce budgets. This is particularly true for spouses who are not in control of their future income if their primary source of income to support the home is from spousal and/or child support.

Call Us Now    Send Us An Email

Call Us Now   

Send Us An Email