"According to the NAHB/Wells Fargo Cost of Housing Index, a typical family earning the median U.S. income now spends 36% of earnings on a new homeand low-income buyers must commit 71%. In a single generation, attainability has become a moving target. Behind the purchase price, another storm is swelling: property insurance and tax costs. Cotality's 2025 Affordable Homes, Unstable Costs report found that escrow paymentscovering insurance and taxeshave surged 45%in five years, and for one in ten households now exceed principal + interest combined."
"Digitalization has transformed how homes are shopped, configured, and financed. Yet one of the most anxiety-filled parts of the process insurance often remains opaque and offline. That's where Tom Kriby, Vice President of Client Development and Partnerships at Westwood Insurance Agency, believes builders have a new opportunity. By embedding insurance directly within the digital home-buying workflow, builders can convert uncertainty into confidence."
Median-income families now spend 36% of earnings on new homes, while low-income buyers must commit 71%, making attainability a moving target within one generation. Escrow payments covering insurance and taxes have surged 45% in five years and exceed principal plus interest for one in ten households, with some states seeing hikes above 50%. Catastrophic claim severity rose 21% year-over-year and all-peril loss costs increased nearly 50% since 2019. Carriers are passing higher costs to homeowners and increasingly to builders. Embedding insurance into the digital home-buying workflow can improve transparency, reduce anxiety, and rebuild trust.
Read at www.housingwire.com
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