Texas housing affordability and insurance costs

Reports from the Kinder Institute for Urban Research and Texas 2036 indicate that rising homeowners insurance premiums are significantly undermining housing affordability across Texas. Data shows that insurance costs are increasing at a rate that far outpaces both home prices and median household income. Between 2009 and 2024, premiums rose by 74% while income grew by only 11%. As a result, approximately 64% of Texas households—roughly seven million—cannot afford a median-priced home in their county when insurance is included in the total cost of ownership.

Subsequent analysis identifies extreme weather events, such as wildfires, floods, and storms, as primary drivers for the increasing cost and decreasing availability of insurance. This financial strain is forcing households to divert more income toward housing, which reduces available funds for essential needs like food, healthcare, and transportation. In areas like Fort Worth, residents are facing additional pressures from utility costs that are roughly 13% higher than the national average, leading many to adopt proactive emergency budgeting to manage rising living costs.