Homeowners and Renters Insurance

Homeowners and Renters Insurance

HOMEOWNERS INSURANCE EXPENDITURES

The average homeowners insurance premium rose by 6.0 percent in 2013, following a 5.6 percent increase in 2012, according to a February 2016 study by the National Association of Insurance Commissioners. The average renters insurance premium rose 0.5 percent in 2013 and was unchanged in 2012. Florida had the highest average homeowners insurance premium in 2013 ($2,115) and Idaho had the lowest ($561). The countrywide average homeowners insurance premium was $1,096 in 2013. (See tables in EXPENDITURES FOR HOMEOWNERS AND RENTERS INSURANCE section below).

CAUSES OF HOMEOWNERS INSURANCE LOSSES

In 2014, 5.3 percent of insured homes had a claim, according to ISO. Property damage, including theft, accounted for 97.3 percent of those claims. Changes in the percentage of each type of homeowners loss from one year to another are partially influenced by large fluctuations in the number and severity of weather-related events such as hurricanes and winter storms. There are two ways of looking at losses: by the average number of claims filed per 100 policies (frequency) and by the average amount paid for each claim (severity). The loss category “water damage and freezing” includes damage caused by mold, if covered. Every state except Arkansas, New York, North Carolina and Virginia has adopted an ISO mold limitation for homeowners insurance coverage, which allows insurers to exclude the coverage unless the condition results from a covered peril.

HOME INVENTORIES

On average, over the past nine years about half of homeowners said they prepared an inventory of their possessions to help document losses for their insurers, according to polls conducted for the Insurance Information Institute (I.I.I.). Fifty-two percent of homeowners said they had an inventory in a June 2015 I.I.I. survey. The survey showed that homeowners in the South were more likely to have a home inventory (57 percent), followed by homeowners in the Northeast and West (56 percent and 50 percent, respectively). Only 43 percent of homeowners in the Midwest said they had an inventory.

SINKHOLE CLAIMS

In March 2013 an entire house fell into a huge sinkhole in a suburb of Tampa, Florida, garnering national attention. Although such large, sudden and destructive sinkholes are relatively rare, thousands of small sinkholes appear in the U.S. each year. The most damage from sinkholes occurs in Florida, Texas, Alabama, Missouri, Kentucky, Tennessee and Pennsylvania, according to the U.S. Geological Survey. Most homeowners insurance policies exclude coverage for sinkhole damage. However, homeowners insurance companies in Florida and Tennessee are required to offer the coverage. In Florida catastrophic ground cover collapse is mandatory; comprehensive sinkhole coverage is optional. (Note: For information on the Florida law see http://www.insuringflorida.org/articles/sinkholes.html. For statistics on Florida sinkholes see http://www.floir.com/sections/pandc/sinkholepage.aspx).

 

HOMEOWNERS LOSSES RANKED BY CLAIMS SEVERITY (AVERAGE CLAIM), 2010-2014 (1)

(Weighted average, 2010-2014)

(1) For homeowners multiple peril policies (HO-2, HO-3, HO-5 and HE-7 for North Carolina). Excludes tenants and condominium owners policies. Accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims. Excludes Arkansas and Texas.
(2) Includes vandalism and malicious mischief.
(3) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified.

Source: ISO®, a Verisk Analytics® business.

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HOMEOWNERS LOSSES RANKED BY CLAIMS FREQUENCY, 2010-2014 (1)

(Weighted average, 2010-2014)

(1) Claims per 100 house years (policies). For homeowners multiple peril policies (HO-2, HO-3, HO-5 and HE-7 for North Carolina). Excludes tenants and condominium owners policies. Excludes Arkansas and Texas.
(2) Includes vandalism and malicious mischief.
(3) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified.

Source: ISO®, a Verisk Analytics® business.

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HOMEOWNERS INSURANCE LOSSES, 2010-2014 (1)

  Total homeowners losses   Total homeowners losses
Year Claim
frequency (2)
Claim
severity (3)
Year Claim
frequency (2)
Claim
severity (3)
2010 6.77 $8,568 2013 5.01 $10,397
2011 9.98 8,431 2014 5.27 10,750
2012 7.70 8,797 Average (4) 6.98 $9,155

(1) For homeowners multiple peril policies (HO-2, HO-3, HO-5 and HE-7 for North Carolina). Excludes tenants and condominium policies. Excludes Arkansas and Texas
(2) Claims per 100 house years (policies).
(3) Average amount paid per claim; based on accident year incurred losses, excluding loss
adjustment expenses, i.e., indemnity costs per accident year incurred claims.
(4) Weighted average, 2010-2014.

Source: ISO®, a Verisk Analytics® business.

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  • In 2014, 5.3 percent of insured homes experienced a claim.
  • Homeowners insurance losses, net of reinsurance, rose to $39.9 billion in 2014 from $35.5 billion in 2013, according to SNL Financial.

 

HOMEOWNERS INSURANCE LOSSES BY CAUSE, 2010-2014 (1)

(Percent of losses incurred)

Cause of loss 2010 2011 2012 2013 2014
Property damage (2) 95.2% 97.0% 96.7% 95.9% 97.3%
Fire, lightning and debris removal  25.0  18.4 23.3 29.2 25.9
Wind and hail 36.1 46.6 49.1 30.8 27.3
Water damage and freezing 21.1 21.4 16.9 25.9 33.7
Theft 3.1 2.3 2.9 3.4 2.5
All other property damage (3) 9.9 8.3 4.5 6.6 7.9
Liability (4) 4.8% 3.0% 3.3% 4.1% 2.7%
Bodily injury and property damage 4.7 2.9 3.1 3.8 2.5
Medical payments and other 0.2 0.1 0.2 0.3 0.2
Credit card and other (5) (6) (6) (6) (6) (6)
Total 100.0% 100.0% 100.0% 100.0% 100.0%

(1) For homeowners multiple peril policies (HO-2, HO-3, HO-5). Excludes tenants and condominium owners policies. Excludes Arkansas and Texas.
(2) First party, i.e., covers damage to policyholder's own property.
(3) Includes vandalism and malicious mischief.
(4) Payments to others for which policyholder is responsible.
(5) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and
losses not otherwise classified.
(6) Less than 0.1 percent

Source: ISO®, a Verisk Analytics® business.

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AVERAGE HOMEOWNERS LOSSES, 2010-2014 (1)

(Weighted average, 2010-2014)

Cause of loss Claim frequency (2) Claim severity (3)
Property damage (4) 6.83 $9,024
Fire, lightning and debris removal 0.38 39,791
Wind and hail 3.13 8,041
Water damage and freezing 1.86 7,958
Theft 0.47 3,786
All other (5) 0.99 4,800
Liability (6) 0.15 $15,221
Bodily injury and property damage 0.10 20,453
Medical payments and other 0.04 2,598
Credit card and other (7) (8) 554
Average (property damage
and liability), 2010-2014
6.98 $9,155

(1) For homeowners multiple peril policies (HO-2, HO-3, HO-5 and HE-7 for North Carolina). Excludes tenants and condominium owners policies. Excludes Arkansas and Texas.
(2) Claims per 100 house years (policies).
(3) Accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs
per accident year incurred claims.
(4) First party, i.e., covers damage to policyholder's own property.
(5) Includes vandalism and malicious mischief.
(6) Payments to others for which policyholder is responsible.
(7) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and
losses not otherwise classified.
(8) Less than 0.01.

Source: ISO®, a Verisk Analytics® business.

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  • In the five-year period, 2010-2014, 7.0 percent of insured homes had a claim. Wind and hail accounted for the largest share of claims, with 3.1 percent of insured homes having such a loss.

 

Homeowners Insurance Claims Frequency*

  • Homeowners claims related to wind or hail are the most frequent; the costliest are related to fire and lightning.
  • About one in 15 insured homes has a claim each year.
  • About one in 30 insured homes has a property damage claim related to wind or hail each year.
  • About one in 55 insured homes has a property damage claim caused by water damage or freezing each year.
  • About one in 215 insured homes has a property damage claim due to theft each year
  • About one in 265 insured homes has a property damage claim related to fire and lightning.
  • About one in 1,000 homeowners policies has a liability claim related to the cost of lawsuits for bodily injury or property damage that the policyholder or family members cause to others.

*Insurance Information Institute calculations, based on ISO®, a Verisk Analytics® business, data for homeowners insurance claims from 2010-2014 (see table above).

CONSUMER PRICES

The Bureau of Labor Statistics collects the prices of a fixed “basket” of consumer goods and services every month to compile the consumer price index. The price of all types of insurance is heavily influenced by the cost of goods and services paid by insurers to meet.

 

CONSUMER PRICE INDICES FOR INSURANCE AND RELATED ITEMS AND ANNUAL RATES OF CHANGE, 2006-2015

(Base: 1982-84=100)

  Used cars
and trucks
Tenants and
household
insurance (3), (4)
Repair of
household
items (3), (5)
Legal
services
Existing single-
family homes
Year Index Percent
change
Index Percent
change
Index Percent
change
Index Percent
change
Median price
($000)
Percent
change
2006 140.0 0.4% 116.5 -0.9% 154.7 5.0% 250.0 3.4% $222 1.0%
2007 135.7 -3.0 117.0 0.4 161.2 4.2 260.3 4.1 219 -1.3
2008 134.0 -1.3 118.8 1.6 170.0 5.5 270.7 4.0 198 -9.5
2009 127.0 -5.2 121.5 2.2 176.0 3.5 278.1 2.7 173 -12.9
2010 143.1 12.7 125.7 3.5 181.7 3.2 288.1 3.6 173 0.3
2011 149.0 4.1 127.4 1.4 NA NA 297.4 3.2 166 -4.0
2012 150.3 0.9 131.3 3.1 198.7 NA 303.5 2.0 177 6.6
2013 149.9 -0.3 135.4 3.1 206.7 4.0 311.8 2.8 197 11.4
2014 149.1 -0.5 141.9 4.8 212.4 2.8 318.5 2.1 209 5.8
2015 147.1 -1.3 146.4 3.2 220.1 3.6 323.6 1.6 NA NA
Percent change
2006-2015
  5.1%   25.7%   42.3%   29.4%   NA

(1) December 1996=100.
(2) December 1983=100.
(3) December 1997=100.
(4) Only includes insurance covering rental properties.
(5) Includes appliances, reupholstery and inside home maintenance.

NA=Data not available.

Note: Percent changes after 2007 for consumer price indices and all years for the median price of existing single-family homes calculated from unrounded data.

Source: U.S. Department of Labor, Bureau of Labor Statistics; National Association of Realtors.

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EXPENDITURES HOMEOWNERS AND RENTERS INSURANCE

The average homeowners insurance premium rose by 5.6 percent in 2012, following a 7.7 percent increase in 2011, according to a February 2015 study by the National Association of Insurance Commissioners. The average renters insurance premium was unchanged in 2012, after rising 1.1 percent the previous year.

AVERAGE PREMIUMS FOR HOMEOWNERS AND RENTERS INSURANCE, UNITED STATES, 2005-2013

Year Homeowners (1) Percent change Renters (2) Percent change
2005 $764 4.8% $193 -1.0%
2006 804 5.2 189 -2.1
2007 822 2.2 182 -3.7
2008 830 1.0 182 (3)
2009 880 6.0 184 1.1
2010 909 3.3 185 0.5
2011 979 7.7 187 1.1
2012 1,034 5.6 187 (3)
2013 1,096 6.0 188 0.5

(1) Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(2) Based on the HO-4 renters insurance policy for tenants. Includes broad named-peril coverage for the personal property of tenants.
(3) Less than 0.1 percent.

Source: © 2016 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

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  • A 2015 Insurance Information Institute poll conducted by ORC International found that 95 percent of homeowners had homeowners insurance but only 40 percent of renters had renters insurance.
  • The U.S. homeownership rate was 63.4 percent in second-quarter 2015, down from 64.7 percent a year ago to the lowest rate since 1967, according to the U.S. Census Bureau. The 2010 Census showed that in some of the largest cities renters outnumbered owners, including New York, where 69.0 percent of households were occupied by renters, followed by Los Angeles (61.8 percent), Chicago (55.1 percent) and Houston (54.6 percent).

 

AVERAGE PREMIUMS FOR HOMEOWNERS AND RENTERS INSURANCE BY STATE, 2013 (1)

  Homeowners Renters   Homeowners Renters
State Average
premium (2)
Rank (3) Average
premium (4)
Rank (3) State Average
premium (2)
Rank (3) Average
premium (4)
Rank (3)
Alabama $1,323 8 $245 4 Montana $938 29 $143 48
Alaska 980 25 168 28 Nebraska 1,151 16 149 41
Arizona 724 44 192 17 Nevada 687 46 191 18
Arkansas 1,183 14 212 9 New Hampshire 885 36 149 41
California (5) 966 26 203 13 New Jersey 1,058 21 163 31
Colorado 1,160 15 168 28 New Mexico 898 34 186 20
Connecticut 1,274 9 200 14 New York 1,213 13 209 10
Delaware 709 45 152 40 North Carolina 1,008 23 146 46
D.C. 1,150 17 158 33 North Dakota 1,078 20 113 51
Florida 2,115 1 208 11 Ohio 763 43 188 19
Georgia 1,044 22 226 6 Oklahoma 1,654 4 245 4
Hawaii 953 27 215 7 Oregon 568 50 163 31
Idaho 561 51 155 38 Pennsylvania 863 37 157 35
Illinois 938 29 172 26 Rhode Island 1,334 7 178 24
Indiana 887 35 183 21 South Carolina 1,214 12 195 16
Iowa 832 40 147 43 South Dakota 915 31 120 50
Kansas 1,343 6 176 25 Tennessee 1,090 19 213 8
Kentucky 981 24 170 27 Texas (6) 1,837 2 247 2
Louisiana 1,822 3 246 3 Utah 609 49 146 46
Maine 776 42 147 43 Vermont 814 41 153 39
Maryland 904 33 158 33 Virginia  911 32 156 36
Massachusetts 1,263 10 198 15 Washington 676 47 165 30
Michigan 839 39 204 12 West Virginia 844 38 179 22
Minnesota 1,222 11 147 43 Wisconsin 665 48 130 49
Mississippi 1,395 5 250 1 Wyoming 952 28 156 36
Missouri 1,143 18 179 22 United States $1,096   $188  

(1) See footnote 1 on the previous chart for state funds and residual markets included.
(2) Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(3) Ranked from highest to lowest. States with the same premium receive the same rank.
(4) Based on the HO-4 renters insurance policy for tenants. Includes broad named-peril coverage for the personal property of tenants.
(5) Data provided by the California Department of Insurance.
(6) The Texas Department of Insurance developed home insurance policy forms that are similar but not identical to the standard forms. In addition, due to the Texas Windstorm Association (which writes wind-only policies) classifying HO-1, 2 and 5 premiums as HO-3, the average premium for homeowners insurance is artificially high.

Note: Average premium=Premiums/exposure per house years. A house year is equal to 365 days of insured coverage for a single dwelling. The NAIC does not rank state average expenditures and does not endorse any conclusions drawn from this data.

Source: ©2016 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

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AVERAGE HOMEOWNERS INSURANCE PREMIUMS RANKED BY STATE, 2013 (1)

Rank (2) State Average premium Rank (2) State Average premium
1 Florida $2,115 27 Hawaii $953
2 Texas (3) 1,837 28 Wyoming 952
3 Louisiana 1,822 29 Illinois 938
4 Oklahoma 1,654 29 Montana 938
5 Mississippi 1,395 31 South Dakota 915
6 Kansas 1,343 32 Virginia  911
7 Rhode Island 1,334 33 Maryland 904
8 Alabama 1,323 34 New Mexico 898
9 Connecticut 1,274 35 Indiana 887
10 Massachusetts 1,263 36 New Hampshire 885
11 Minnesota 1,222 37 Pennsylvania 863
12 South Carolina 1,214 38 West Virginia 844
13 New York 1,213 39 Michigan 839
14 Arkansas 1,183 40 Iowa 832
15 Colorado  1,160 41 Vermont 814
16 Nebraska 1,151 42 Maine 776
17 D.C. 1,150 43 Ohio 763
18 Missouri 1,143 44 Arizona  724
19 Tennessee 1,090 45 Delaware 709
20 North Dakota 1,078 46 Nevada 687
21 New Jersey 1,058 47 Washington 676
22 Georgia 1,044 48 Wisconsin 665
23 North Carolina 1,008 49 Utah 609
24 Kentucky 981 50 Oregon 568
25 Alaska 980 51 Idaho 561
26 California (4) 966      

(1) Includes policies written by Florida Citizens Property Insurance Corp. and Louisiana Citizens Property Insurance Corp., Alabama Insurance Underwriting Association, Massachusetts Property Insurance Underwriting Association, Michigan Basic Property Insurance Association, Mississippi Windstorm Underwriting Association and Residential Property Insurance Underwriting Association, New Jersey Insurance Underwriting Association, North Carolina Joint Underwriting Association, Ohio Fair Plan Underwriting Association, Rhode Island Joint Reinsurance Association and South Carolina Wind and Hail Underwriting Association. Other southeastern states have wind pools in operation and their data may not be included in this chart. Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(2) States with the same premium receive the same rank.
(3) The Texas Department of Insurance developed home insurance policy forms that are similar but not identical to the standard forms. In addition, due to the Texas Windstorm Association (which writes wind-only policies) classifying HO-1, 2 and 5 premiums as HO-3, the average premium for homeowners insurance is artificially high.
(4) Data provided by the California Department of Insurance.

Note: Average premium=Premiums/exposure per house years. A house year is equal to 365 days of insured coverage for a single dwelling. The NAIC does not rank state average expenditures and does not endorse any conclusions drawn from this data.

Source: © 2016 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

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Top 10 Writers Of Homeowners Insurance By Direct Premiums Written, 2015

($000)

Rank Group/company Direct premiums written (1) Market share (2)
1 State Farm Mutual Automobile Insurance $17,516,715 19.6%
2 Allstate Corp. 7,926,984 8.9
3 Liberty Mutual 5,993,803 6.7
4 Farmers Insurance Group of Companies (3) 5,284,511 5.9
5 USAA Insurance Group 5,000,407 5.6
6 Travelers Companies Inc. 3,305,427 3.7
7 Nationwide Mutual Group 3,249,456 3.6
8 American Family Insurance Group 2,609,366 2.9
9 Chubb Ltd. (4) 2,485,193 2.8
10 Erie Insurance Group 1,471,544 1.7

(1) Before reinsurance transactions, includes state funds.
(2) Based on U.S. total, includes territories.
(3) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Market Intelligence.
(4) Chubb Ltd. data reflects the 2015 merger with Ace Ltd.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Homeowners Insurance Industry Underwriting Expenses, 2015 (1)

Expense Percent of premiums
LOSSES AND RELATED EXPENSES (2)  
Loss and loss adjustment expense (LAE) ratio 61.6%
    Incurred losses 52.5
    Defense and cost containment expenses incurred 1.5
    Adjusting and other expenses incurred 7.5
OPERATING EXPENSES (3)  
Expense ratio 29.1%
    Net commissions and brokerage expenses incurred 12.6
    Taxes, licenses and fees 2.6
    Other acquisition and field supervision expenses incurred 8.6
    General expenses incurred 5.3
DIVIDENDS TO POLICYHOLDERS (2) 0.5%
COMBINED RATIO AFTER DIVIDENDS (4) 91.3%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($78.6 billion in 2015).
(3) As a percent of net premiums written ($79.9 billion in 2015).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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HOME INJURIES

In 2014, 20.2 million Americans, or one in 16 people, experienced an unintentional injury in the home that required aid from a medical professional, according to an analysis by the National Safety Council (NSC). Injuries requiring medical attention occur more often at home than in public places, the workplace and motor vehicle crashes combined, according to the NSC. There were 69,500 deaths from unintentional home injuries in 2014. Despite population growth and a corresponding rise in the number of fatal injuries, the rate of fatal home injuries has declined dramatically over the past 100 years, falling by 22 percent to 21.8 deaths per 100,000 people in 2014 from 28 deaths per 100,000 people in 1912. However, the number and rate of unintentional home injury deaths has been steadily rising since 2000, largely due to increases in unintentional poisonings and falls.

UNINTENTIONAL HOME DEATHS AND INJURIES, 2014

Deaths 69,500
Medically consulted injuries 20,200,000
Death rate per 100,000 population 21.8
Costs $241.9 billion

Source: National Safety Council. (2016). Injury Facts®, 2016 Edition. Itasca, IL: Author.

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PRINCIPAL TYPES OF HOME UNINTENTIONAL INJURY DEATHS, 2014

(1) Inhalation and ingestion of food or other object that obstructs breathing.

Source: National Safety Council. (2016). Injury Facts®, 2016 Edition. Itasca, IL.

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  • Falls are the leading cause of hospital-treated unintentional injuries, according to the Home Safety Council.

HIGH-RISK MARKETS

A myriad of different programs in place across the United States provide insurance to high risk policyholders who may have difficulty obtaining coverage from the standard market. So called residual, shared or involuntary market programs make basic insurance coverage more readily available. Today, property insurance from the residual market is provided by Fair Access to Insurance Requirements (FAIR) Plans, Beach and Windstorm Plans, and two state-run insurance companies in Florida and Louisiana: Florida Citizens Property Insurance Company (CPIC) and Louisiana Citizens Property Insurance Corporation (Louisiana Citizens). Established in the late 1960s to ensure the continued provision of insurance in urban areas, FAIR Plans often provide property insurance in both urban and coastal areas, while Beach and Windstorm Plans cover predominantly wind-only risks in designated coastal areas. Hybrid plans like Florida and Louisiana’s CPIC, provide property insurance throughout those states. It is important to note that in addition to windstorm risk, these plans routinely cover a range of other exposures, such as vandalism and fire.

RENTERS AND HOMEOWNERS DEMOGRAPHICS

In 2014, 63.1 percent of housing units were owner occupied and 36.9 percent were renter occupied, according to the latest U.S. Census figures. In 2013, 29 percent of owner-occupied units housed people age 65 and over. The same year, 14 percent of rental units housed people over age 65.

The nation's homeowners with a mortgage paid a median of $1,454 in monthly housing costs in 2014, compared with $934 for renters, according to the latest American Housing Survey from the Census.

However, renters usually paid a higher percentage of their household income on these costs than did owners, 48 percent compared with 31 percent of homeowners who spent 30 percent or more of their income on housing costs.

PERCENT OF OCCUPIED HOUSING UNITS THAT ARE OWNER OCCUPIED, 2014

 

State Percent Rank (1) State Percent Rank (1)
Alabama 67.7% 15 Montana 66.4% 22
Alaska 62.5 39 Nebraska 65.9 26
Arizona 61.1 44 Nevada 53.6 49
Arkansas 65.8 28 New Hampshire 70.2 6
California 53.7 48 New Jersey 63.3 38
Colorado 63.9 36 New Mexico 66.9 17
Connecticut 66.4 22 New York 53.0 50
Delaware 70.3 5 North Carolina 64.2 34
D.C. 40.6 51 North Dakota 63.8 37
Florida 64.1 35 Ohio 65.3 30
Georgia 62.2 40 Oklahoma 65.1 32
Hawaii 56.7 47 Oregon 60.7 45
Idaho 68.0 13 Pennsylvania 68.8 10
Illinois 65.5 29 Rhode Island 58.8 46
Indiana 68.6 11 South Carolina 68.0 13
Iowa 70.9 4 South Dakota 68.2 12
Kansas 66.6 20 Tennessee 66.1 24
Kentucky 66.1 24 Texas 61.2 43
Louisiana 64.4 33 Utah 69.2 9
Maine 71.3 3 Vermont 70.0 8
Maryland 65.9 26 Virginia 65.3 30
Massachusetts 61.6 42 Washington 61.7 41
Michigan 70.2 6 West Virginia 72.2 1
Minnesota 71.7 2 Wisconsin 66.6 20
Mississippi 67.7 15 Wyoming 66.9 17
Missouri 66.9 17 United States 63.1%  

(1) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau; American Community Survey.

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  •  In 2014 West Virginia, Minnesota and Maine had the highest percentage of owner-occupied housing units.
  • The District of Columbia had the lowest percentage of owner-occupied units, followed by New York, Nevada, California and Hawaii.

PERCENT OF MORTGAGED OWNERS SPENDING 30 PERCENT OR MORE OF HOUSEHOLD INCOME ON HOMEOWNERSHIP COSTS, 2014

 

State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 28.0% 30 Montana 30.5% 19
Alaska 26.9 35 Nebraska 22.9 46
Arizona 29.1 23 Nevada 32.0 13
Arkansas 24.4 43 New Hampshire 32.5 10
California 40.3 1 New Jersey 39.3 3
Colorado 28.9 25 New Mexico 32.1 12
Connecticut 34.0 8 New York 37.1 4
Delaware 31.1 17 North Carolina 28.3 28
D.C. 26.4 36 North Dakota 16.3 51
Florida 36.9 5 Ohio 24.7 41
Georgia 29.4 21 Oklahoma 24.6 42
Hawaii 40.3 1 Oregon 32.7 9
Idaho 27.1 33 Pennsylvania 28.5 26
Illinois 31.4 15 Rhode Island 36.8 6
Indiana 22.6 48 South Carolina 29.3 22
Iowa 20.8 50 South Dakota 22.5 49
Kansas 23.5 45 Tennessee 29.0 24
Kentucky 25.7 38 Texas 27.0 34
Louisiana 28.1 29 Utah 27.3 32
Maine 31.4 15 Vermont 35.4 7
Maryland 30.9 18 Virginia 28.5 26
Massachusetts 32.5 10 Washington 31.5 14
Michigan 26.4 36 West Virginia 22.7 47
Minnesota 24.8 40 Wisconsin 27.9 31
Mississippi 30.4 20 Wyoming 23.6 44
Missouri 25.2 39 United States 30.7%  

(1) Percent of mortgaged owner-occupied housing units spending 30 percent or more of household income on selected owner costs such as all mortgage payments (first mortgage, home equity loans, etc.), real estate taxes, property insurance, utilities, fuel and condominium fees if applicable.
(2) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau; American Community Survey.

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  • In 2014, Hawaii, California and New Jersey had the highest homeownership costs, based on the percentage of homes in which owners spent 30 percent or more of their income on homeowner-ownership related expenses.
  • North Dakota, Iowa and South Dakota had the lowest costs, based on the percentage of homes in which owners spent 30 percent of more of their income on homeowner-ownership expenses.

PERCENT OF RENTER OCCUPIED UNITS SPENDING 30 PERCENT OR MORE OF THEIR INCOME ON RENT AND UTILITIES, 2014

 

State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 44.7% 34   Montana 41.1% 44
Alaska 46.8 18   Nebraska 38.8 47
Arizona 45.6 27   Nevada 46.9 16
Arkansas 41.8 43   New Hampshire 46.9 16
California 53.8 1   New Jersey 50.0 6
Colorado 48.1 10   New Mexico 45.8 26
Connecticut 49.7 7   New York 51.4 5
Delaware 46.3 22   North Carolina 46.3 22
D.C. 45.5 29   North Dakota 36.4 49
Florida 53.6 2   Ohio 44.3 36
Georgia 47.5 13   Oklahoma 39.9 46
Hawaii 52.6 3   Oregon 51.9 4
Idaho 41.9 42   Pennsylvania 46.6 19
Illinois 46.3 22   Rhode Island 49.3 8
Indiana 45.4 31   South Carolina 46.3 22
Iowa 40.2 45   South Dakota 35.9 51
Kansas 42.0 41   Tennessee 45.6 27
Kentucky 43.2 40   Texas 45.3 33
Louisiana 45.4 31   Utah 43.7 37
Maine 46.6 19   Vermont 47.2 14
Maryland 48.8 9   Virginia 46.6 19
Massachusetts 47.8 12   Washington 47.1 15
Michigan 48.0 11   West Virginia 37.9 48
Minnesota 45.5 29   Wisconsin 44.6 35
Mississippi 43.5 39   Wyoming 36.2 50
Missouri 43.6 38 United States 47.9%  

(1) Percent of renter-occupied units spending 30 percent or more on rent and utilities such as electric, gas, water and sewer, and fuel (oil, coal, etc.) if paid by the renter.
(2) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau; American Community Survey.

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  • Nationwide, 47.9 percent of renters spent at least 30 percent of their household income on rent and utilities in 2014.
  • In 2014 South Dakota, Wyoming, North Dakota and West Virginia had the lowest percentage of rental units in which occupants spent 30 percent or more of their income on rent. California, Florida, Hawaii and Oregon had the highest percentage.