Rising homeownership costs squeeze millions of Americans

While those with mortgages have faced the biggest increases in absolute dollar amounts, those who own their homes outright have experienced sharper increases relative to their incomes.

Between 2020 and 2023, average monthly expenses for mortgage holders rose by $305, reaching a record $2,268 — a 16% increase. For homeowners without a mortgage, monthly costs rose by $180 to an average of $799 — up 29%.

This growing burden has widened a generational divide. Mortgage borrowers, who are often younger and earn less, have seen their housing cost burden edge up slightly, from 19.8% of household income in 2020 to 20.3% in 2023.

“Free and clear” homeowners without a mortgage, who are often older and have a fixed income, saw their housing burden rise more dramatically —…