Homeowners and Renters Insurance

Homeowners and Renters Insurance

HOMEOWNERS INSURANCE EXPENDITURES

The average homeowners insurance premium rose by 7.6 percent in 2011, following a 3.3 percent increase in 2010, according to a December 2013 study by the National Association of Insurance Commissioners. The average renters insurance premium rose by 1.1 percent in 2011, after rising 0.5 percent the previous year. Florida had the highest average homeowners insurance premium in 2011 ($1,933) and Idaho had the lowest ($518). The countrywide average homeowners insurance premium was $978 in 2011. (See tables in EXPENDITURES FOR HOMEOWNERS AND RENTERS INSURANCE section below).

CAUSES OF HOMEOWNERS INSURANCE LOSSES

In 2012, 7.2 percent of insured homes had a claim, according to ISO. Property damage, including theft, accounted for 97.6 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.

Jewelry was the top claims category under homeowners policies in 2011, based on the dollar value of contents claims of about 300 insurers analyzed and tracked by inventory services firm, Enservio. The firm’s Contents Claims Index (CCI) includes items that are damaged, lost or stolen. Enservio found that jewelry was also the most frequently claimed item.

HOME INVENTORIES

The percentage of homeowners who have prepared an inventory of their possessions to help document losses to their insurers has increased dramatically in recent years, according to polls conducted for the Insurance Information Institute (I.I.I.). About three out of five homeowners (61 percent) said they had an inventory in a June 2012 I.I.I. survey. Similar polls conducted in 2011 and 2008 found that only half of respondents had such an inventory. The 2012 findings were consistent across regions, with approximately 60 percent of homeowners in the Northeast, West, South and Midwest having a home 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).

 

CONTENTS CLAIM INDEX, HOMEOWNERS INSURANCE, 2012 (1)

 

Category Percent of total claims
Jewelry 16%
Electronics 13
Apparel 13
Furniture 10
House and home 10
Tools 5
Appliances 4
Sporting goods 3
Books and magazines 3
Beds and matresses 2

(1) Top contents categories as compiled from homeowners claims filed with insurers. Ranked by dollar value as a percent of total claims. Dollar value is based on the cost to replace items that are damaged, lost or stolen. The Index includes 300 insurers.

Source: Enservio.

 

  • Jewelry losses were the top claims category based on the value of homeowners contents claims, according to inventory services firm, Enservio.

 

HOMEOWNERS LOSSES RANKED BY CLAIMS SEVERITY (AVERAGE CLAIM), 2008-2012 (1)

(Weighted average, 2008-2012)

(1) For homeowners multiple peril policies. Excludes tenants and condominium owners policies. Accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims.
(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 company.

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HOMEOWNERS LOSSES RANKED BY CLAIMS FREQUENCY, 2008-2012 (1)

(Weighted average, 2008-2012)

(1) Claims per 100 house years (policies). For homeowners multiple peril policies. Excludes tenants and condominium owners policies.
(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 company.

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HOMEOWNERS INSURANCE LOSSES BY CAUSE, 2008-2012 (1)

(Percent of losses incurred)

Cause of loss 2008 2009 2010 2011 2012
Property damage (2) 94.9% 95.0% 95.4% 97.2% 97.6%
Fire, lightning and debris removal 27.5 27.2 25.5 19.0 25.2
Wind and hail 35.1 31.7 35.6 46.0 47.2
Water damage and freezing 20.6 24.4 21.3 21.7 17.5
Theft 3.0 3.3 3.1 2.4 3.0
All other (3) 8.7 8.5 9.9 8.3 4.7
Liability (4) 5.1% 5.0% 4.6% 2.8% 2.4%
Bodily injury and property damage 4.9 4.8 4.4 2.6 2.3
Medical payments and other 0.2 0.2 0.2 0.2 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. Excludes tenants and condominium owners policies.
(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 miscellaneous losses.
(6) Less than 0.1 percent.

Source: ISO, a Verisk Analytics company.

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HOMEOWNERS INSURANCE LOSSES, 2008-2012 (1)

  Total homeowners
losses
  Total homeowners
losses
Year Claim
frequency (2)
Claim
severity (3)
  Claim
frequency (2)
Claim
severity (3)
2008 6.88 $7,789 2011 9.71 $8,424
2009 6.10 8,400 2012 7.22        8,665
2010 6.63 8,584 Average (4) 7.32 $8,384

(1) For homeowners multiple peril policies. Excludes tenants and condominium policies.
(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, 2008-2012.

Source: ISO, a Verisk Analytics company.

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  • In 2012, 7.2 percent of insured homes experienced a claim.
  • Homeowners insurance losses, net of reinsurance fell from $51 billion in 2011 to $41 billion in 2012, according to SNL Financial.

AVERAGE HOMEOWNERS LOSSES, 2008-2012 (1)

(Weighted average, 2008-2012)

Cause of loss Claim frequency (2) Claim severity (3)
Property damage (4) 7.16 $8,255
Fire, lightning and debris removal 0.43 34,306
Wind and hail 3.37 7,307
Water damage and freezing 1.79 7,195
Theft 0.52 3,428
All other (5) 1.04 4,684
Liability (6) 0.17 $14,021
Bodily injury and property damage 0.12 18,804
Medical payments and other 0.05 2,256
Credit card and other (7) (8) $581
Average (property damage
and liability), 2008-2012
7.32 $8,384

(1) For homeowners multiple peril policies. Excludes tenants and condominium owners policies.
(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 miscellaneous losses.
(8) Less than 0.01.

Source: ISO, a Verisk Analytics company.

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  • In the five-year period, 2008-2012, 7.3 percent of insured homes had a claim. Wind and hail accounted for the largest share of claims, with 3.4 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, lightning or debris removal.
  • About one in 20 insured homes have claims in a typical year, though the frequency of claims can be much higher in years with significant catastrophe activity.
  • About one in 30 insured homes have a property damage claim related to wind or hail each year.
  • About one in 55 insured homes have a property damage claim caused by water damage or freezing each year.
  • About one in 190 insured homes have a property damage claim due to theft each year.
  • About one in 230 insured homes have a property damage claim related to fire, lightning or debris removal every year.
  • About one in 830 homeowners policies have a liability claim related to the cost of lawsuits for bodily injury or property damage that the policyholder or family members cause to others.

*I.I.I. calculations, based on ISO, a Verisk Analytics company, using historical data for homeowners insurance claims.

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, 2004-2013 (Cont'd)

(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
2004 133.3 -6.7% 116.2 1.2% 139.4 6.4% 232.3 4.8% 195 9.3%
2005 139.4 4.6 117.6 1.2 147.4 5.7 241.8 4.1 220 12.4
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 6.4
2013 149.9 -0.3 135.4 3.1 206.7 4.0 311.8 2.8 197 (6) 11.5
Percent change
2004-2013
  12.4%   16.5%   48.2%   34.2%   1.0%

(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.
(6) Preliminary.

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 FOR HOMEOWNERS AND RENTERS INSURANCE

The average homeowners insurance premium rose by 7.6 percent in 2011, following a 3.3 percent increase in 2010, according to a December 2013 study by the National Association of Insurance Commissioners. The average renters insurance premium rose by 1.1 percent in 2011, after rising 0.5 percent the previous year.

AVERAGE PREMIUMS FOR HOMEOWNERS AND RENTERS INSURANCE, UNITED STATES, 2003-2011

Year Homeowners (1) Percent change Renters (2)  Percent change
2003 $668 12.6% $192 3.2%
2004 729 9.1 195 1.6
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 978 7.6 187 1.1

(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: ©2013 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 2014 Insurance Information Institute poll conducted by ORC International found that 95 percent of homeowners had homeowners insurance but only 37 percent of renters had renters insurance.
  • The U.S. home ownership rate was 65.4 percent in 2012, down from 66.1 percent in 2011, 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 renter occupied, 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, 2011 (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 (2)
Alabama  $1,163 6 $230 4 Montana  $818 28 $147 40
Alaska  924 21 171 26 Nebraska  958 20 151 37
Arizona  675 43 200 12 Nevada  689 42 199 13
Arkansas  1,029 15 220 7 New Hampshire  811 29 152 36
California (5) 967 18 208 11 New Jersey  915 22 168 28
Colorado  961 19 175 23 New Mexico  793 31 189 16
Connecticut  1,096 10 196 15 New York  1,097 9 210 10
Delaware 664 44 159 32 North Carolina  869 25 132 42
D.C. 1,083 12 167 29 North Dakota  969 17 117 43
Florida  1,933 1 210 10 Ohio  644 45 183 17
Georgia  906 24 228 5 Oklahoma  1,386 5 235 3
Hawaii  907 23 176 22 Oregon  559 49 170 27
Idaho  518 50 160 31 Pennsylvania  744 37 154 35
Illinois  822 27 172 25 Rhode Island  1,139 7 183 17
Indiana  779 33 179 19 South Carolina  1,091 11 199 14
Iowa  713 41 149 39 South Dakota  721 39 117 43
Kansas  1,103 8 177 21 Tennessee  915 22 213 9
Kentucky  839 26 175 23 Texas (6) 1,578 3 225 6
Louisiana  1,672 2 238 2 Utah  563 48 147 40
Maine  714 40 150 38 Vermont  748 36 155 34
Maryland  800 30 161 30 Virginia  782 32 155 34
Massachusetts  1,072 13 213 8 Washington  626 46 174 24
Michigan  774 34 208 11 West Virginia  743 38 178 20
Minnesota  1,056 14 150 38 Wisconsin  592 47 133 41
Mississippi  1,409 4 252 1 Wyoming  770 35 156 33
Missouri  1,022 16 182 18 United States $978   $187  

(1) See 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: ©2013 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 BY STATE, 2011 (1)

Rank State Average premium Rank State Average premium
1 Florida $1,933 26 Kentucky $839
2 Louisiana 1,672 27 Illinois 822
3 Texas (2) 1,578 28 Montana 818
4 Mississippi 1,409 29 New Hampshire 811
5 Oklahoma 1,386 30 Maryland 800
6 Alabama 1,163 31 New Mexico 793
7 Rhode Island 1,139 32 Virginia  782
8 Kansas 1,103 33 Indiana 779
9 New York 1,097 34 Michigan 774
10 Connecticut 1,096 35 Wyoming 770
11 South Carolina 1,091 36 Vermont 748
12 D.C. 1,083 37 Pennsylvania 744
13 Massachusetts 1,072 38 West Virginia 743
14 Minnesota 1,056 39 South Dakota 721
15 Arkansas 1,029 40 Maine 714
16 Missouri 1,022 41 Iowa 713
17 North Dakota 969 42 Nevada 689
18 California (3) 967 43 Arizona  675
19 Colorado  961 44 Delaware 664
20 Nebraska 958 45 Ohio 644
21 Alaska 924 46 Washington 626
22 New Jersey 915 47 Wisconsin 592
22 Tennessee 915 48 Utah 563
23 Hawaii 907 49 Oregon 559
24 Georgia 906 50 Idaho 518
25 North Carolina 869      

(1) Includes policies written by Citizens Property Insurance Corp. (Florida) and Citizens Property Insurance Corp. (Louisiana), Alabama Insurance Underwriting Association, Mississippi Windstorm Underwriting Association, North Carolina Joint Underwriting 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) 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.
(3) 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: ©2013 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 TEN WRITERS OF HOMEOWNERS INSURANCE BY DIRECT PREMIUMS WRITTEN, 2013

($000)

Rank Group/company Direct premiums written (1) Market share (2)
1 State Farm Mutual Automobile Insurance $17,073,508 20.8%
2 Allstate Corp. 7,428,694 9.1
3 Liberty Mutual 5,236,892 6.4
4 Farmers Insurance Group of Companies (3) 5,029,555 6.1
5 USAA Insurance Group 4,328,005 5.3
6 Travelers Companies Inc. 3,368,962 4.1
7 Nationwide Mutual Group 3,092,293 3.8
8 American Family Mutual 2,272,519 2.8
9 Chubb Corp. 1,972,793 2.4
10 Citizens Property Insurance Corp. (Florida) 1,272,336 1.6

(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 SNL Financial.

Source: SNL Financial LC.

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HOMEOWNERS INSURANCE INDUSTRY UNDERWRITING EXPENSES, 2013 (1)

Expense Percent of premiums
LOSSES AND RELATED EXPENSES (2)  
Loss and loss adjustment expense (LAE) ratio 59.6%
    Incurred losses 50.5
    Defense and cost containment expenses incurred 1.5
    Adjusting and other expenses incurred 7.6
OPERATING EXPENSES (3)  
Expense ratio 29.5%
    Net commissions and brokerage expenses incurred 12.6
    Taxes, licenses and fees 2.7
    Other acquisition and field supervision expenses incurred 9.0
    General expenses incurred 5.2
DIVIDENDS TO POLICYHOLDERS (2) 0.5%
COMBINED RATIO AFTER DIVIDENDS (4) 89.6%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($70.3 billion in 2013).
(3) As a percent of net premiums written ($72.8 billion in 2013).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: SNL Financial LC.

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HOME INJURIES

In 2011 almost 19 million Americans, or one in 17 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 60,600 deaths from unintentional home injuries in 2011. 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 31 percent from 28 deaths per 100,000 people in 1912 to 19.4 per 100,000 people in 2011. The NSC put the economic cost of home injuries at $206.7 billion in 2011.

 

UNINTENTIONAL HOME DEATHS AND INJURIES, 2012

Deaths 63,000
Medically consulted injuries 19,300,000
Death rate per 100,000 population 20.1
Costs $220.3 billion

Source: National Safety Council.

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  • The number and rate of unintentional home injury deaths has been steadily rising since 2000, according to the NSC, largely due to increases in unintentional poisonings and falls.
 

PRINCIPAL TYPES OF HOME UNINTENTIONAL INJURY DEATHS, 2012

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

Source: National Safety Council.

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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 2012, 63.9 percent of housing units were owner occupied and 36.1 percent were renter occupied, according to the latest U.S. Census figures. In 2011, 26.6 percent of owner-occupied units housed people age 65 and over. The same year, 12.3 percent of rental units housed people over age 65.

The nation's homeowners paid a median of $1,008 in monthly housing costs in 2011, compared with $845 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, 35 percent compared with 21 percent.

PERCENT OF OCCUPIED HOUSING UNITS THAT ARE OWNER OCCUPIED, 2012

State Percent Rank (1) State Percent Rank (1)
Alabama 68.8% 13 Montana 67.1% 20
Alaska 63.4 40 Nebraska 66.3 29
Arizona 62.6 41 Nevada 54.9 48
Arkansas 66.2 31 New Hampshire 70.9 7
California 54.0 49 New Jersey 65.1 36
Colorado 64.0 38 New Mexico 67.7 17
Connecticut 66.9 23 New York 53.7 50
Delaware 70.8 8 North Carolina 65.4 35
D.C. 41.5 51 North Dakota 65.0 37
Florida 65.6 34 Ohio 66.3 29
Georgia 63.7 39 Oklahoma 66.4 27
Hawaii 56.9 47 Oregon 61.6 45
Idaho 68.4 14 Pennsylvania 68.9 12
Illinois 66.6 25 Rhode Island 60.0 46
Indiana 69.4 10 South Carolina 68.1 16
Iowa 71.9 2 South Dakota 67.1 20
Kansas 66.4 27 Tennessee 66.7 24
Kentucky 67.0 22 Texas 62.3 42
Louisiana 65.7 33 Utah 69.6 9
Maine 71.4 3 Vermont 71.0 6
Maryland 66.5 26 Virginia 66.2 31
Massachusetts 62.2 44 Washington 62.3 42
Michigan 71.1 5 West Virginia 72.0 1
Minnesota 71.4 3 Wisconsin 67.3 19
Mississippi 68.2 15 Wyoming 69.0 11
Missouri 67.5 18 United States 63.9%  

(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 2012 West Virginia, Iowa, Maine, Minnesota and Michigan 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, California, Nevada and Hawaii.

PERCENT OF HOUSEHOLD INCOME SPENT ON HOME OWNERSHIP COSTS, 2012

State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 28.1% 37 Montana 31.7% 24
Alaska 31.5 27 Nebraska 24.2 46
Arizona 33.4 16 Nevada 39.1 6
Arkansas 25.3 43 New Hampshire 37.8 9
California 45.5 2 New Jersey 43.7 3
Colorado 32.1 22 New Mexico 33.4 16
Connecticut 38.7 7 New York 39.3 5
Delaware 33.1 19 North Carolina 30.4 30
D.C. 31.9 23 North Dakota 17.3 51
Florida 42.9 4 Ohio 27.2 39
Georgia 32.5 20 Oklahoma 26.0 42
Hawaii 47.9 1 Oregon 37.9 8
Idaho 32.5 20 Pennsylvania 30.1 32
Illinois 35.1 13 Rhode Island 37.8 9
Indiana 23.7 47 South Carolina 30.0 33
Iowa 22.3 50 South Dakota 23.2 48
Kansas 25.0 44 Tennessee 30.5 29
Kentucky 26.1 41 Texas 29.0 35
Louisiana 28.5 36 Utah 31.7 24
Maine 34.4 15 Vermont 35.8 12
Maryland 33.2 18 Virginia 31.3 28
Massachusetts 35.1 13 Washington 36.6 11
Michigan 30.4 30 West Virginia 22.4 49
Minnesota 26.9 40 Wisconsin 29.8 34
Mississippi 31.7 24 Wyoming 24.4 45
Missouri 27.7 38 United States 33.7%  

(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 2012 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 West Virginia 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.

HOUSEHOLD INCOME SPENT ON RENT AND UTILITIES, 2012

State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 42.6% 41 Montana 42.3% 44
Alaska 44.3 39 Nebraska 39.4 47
Arizona 47.7 13 Nevada 48.6 9
Arkansas 42.5 42 New Hampshire 46.1 24
California 54.6 1 New Jersey 51.3 3
Colorado 48.6 9 New Mexico 46.0 25
Connecticut 49.6 8 New York 50.4 4
Delaware 45.6 31 North Carolina 44.8 37
D.C. 45.8 28 North Dakota 31.7 51
Florida 54.2 2 Ohio 45.4 32
Georgia 47.7 13 Oklahoma 42.4 43
Hawaii 50.3 5 Oregon 50.0 6
Idaho 45.8 28 Pennsylvania 45.9 26
Illinois 47.0 17 Rhode Island 47.8 12
Indiana 45.4 32 South Carolina 46.3 23
Iowa 41.5 45 South Dakota 36.7 50
Kansas 40.9 46 Tennessee 45.3 34
Kentucky 42.7 40 Texas 44.5 38
Louisiana 45.7 30 Utah 46.4 20
Maine 47.2 16 Vermont 46.9 18
Maryland 48.0 11 Virginia 46.4 20
Massachusetts 46.8 19 Washington 47.7 13
Michigan 49.8 7 West Virginia 38.9 48
Minnesota 45.3 34 Wisconsin 45.9 26
Mississippi 45.2 36 Wyoming 38.8 49
Missouri 46.4 20 United States 48.1%  

(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, 48.1 percent of renters spent at least 30 percent of their household income on rent and utilities in 2012.
  • In 2012 North Dakota, South Dakota, Wyoming, West Virginia and Nebraska had the lowest  percentage of rental units in which occupants spent 30 percent or more of their income on rent. California, Florida, New Jersey, New York and Hawaii had the highest percentage.