The average homeowners insurance premium rose by 3.1 percent in 2018, following a 1.6 percent increase in 2017, according to a January 2021 study by the National Association of Insurance Commissioners, the latest data available. The average renters insurance premium fell 0.6 percent in 2018 marking the fourth consecutive annual decline. Renters insurance premiums fell 2.7 percent in 2017.
Nationwide, 45.1 percent of renters spent at least 30 percent of their household income on rent and utilities in 2019, according to the U.S. Census. In Florida the percentage was 52.4 percent of renters, the highest among all the states.
The renter share of all occupied housing units in the United States increased steadily from 33.4 percent in 2010 to 36.4 percent in 2016, according to the Census Bureau, but dropped in the next three years to 35.4 percent in 2019. In 2019 people under the age of 30 accounted for 49 percent of people in rental housing, according to the National Multifamily Housing Council (NMHC).
In 2019 metropolitan areas with the high proportions of renting households included New York (27 percent), Los Angeles (24 percent), San Diego and Miami (both 21 percent), and San Jose (20 percent), according the NMHC’s analysis of U.S. Census statistics. Metropolitan areas are regions that consists of a city and surrounding communities that are linked by social and economic factors, as established by the U.S. Office of Management and Budget and are much larget than the city for which they are named. On a state-by-state basis New York had the most people living in rental units (24 percent) followed by California and North Dakota, both with 17 percent, Maryland with 15 percent and Nevada with 14 percent.
Renter household growth seems to have plateaued by 2019, according to Harvard’s Joint Center for Housing Studies’ America’s Rental Housing 2020. Meanwhile the number of high-income renters has continued to climb between 2016 and 2018, a sharp reversal of trends in the 2000’s when low-income households drove 93 percent of renter growth. In addition, renting is now more common among age groups and family types such households headed by 35-64 year olds and those with children which in the past were more likely to own their homes.
Average Premiums For Homeowners And Renters Insurance, 2010-2019
Year |
Homeowners (1) |
Percent change |
Renters (2) |
Percent change |
---|
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 |
2014 |
1,132 |
3.3 |
190 |
1.1 |
2015 |
1,173 |
3.6 |
188 |
-1.1 |
2016 |
1,192 |
1.6 |
185 |
-1.6 |
2017 |
1,211 |
1.6 |
180 |
-2.7 |
2018 |
1,249 |
3.1 |
179 |
-0.6 |
2019 |
1,272 |
1.8 |
174 |
-2.8 |
|
(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: © 2022 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.
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- The U.S. homeownership rate stood at 65.4 percent in the second and third quarters of 2021, down 2 percentage points from 67.4 percent in the third quarter of 2020, 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).
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Average Premiums For Homeowners And Renters Insurance By State, 2019 (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 |
$1,463 |
12 |
$219 |
5 |
Montana |
$1,287 |
19 |
$149 |
40 |
Alaska |
962 |
38 |
182 |
14 |
Nebraska |
1,564 |
9 |
144 |
46 |
Arizona |
850 |
46 |
164 |
24 |
Nevada |
791 |
48 |
179 |
19 |
Arkansas |
1,456 |
13 |
208 |
7 |
New Hampshire |
1,021 |
34 |
146 |
45 |
California (5) |
1,177 |
28 |
175 |
20 |
New Jersey |
1,237 |
23 |
156 |
35 |
Colorado |
1,618 |
7 |
159 |
28 |
New Mexico |
1,126 |
30 |
186 |
10 |
Connecticut |
1,531 |
10 |
183 |
13 |
New York |
1,357 |
16 |
185 |
11 |
Delaware |
908 |
43 |
153 |
36 |
North Carolina |
1,193 |
26 |
159 |
29 |
D.C. |
1,275 |
20 |
158 |
30 |
North Dakota |
1,236 |
24 |
115 |
51 |
Florida |
1,988 |
3 |
180 |
18 |
Ohio |
853 |
45 |
163 |
26 |
Georgia |
1,362 |
15 |
209 |
6 |
Oklahoma |
2,000 |
2 |
235 |
3 |
Hawaii |
1,182 |
27 |
174 |
21 |
Oregon |
727 |
51 |
158 |
31 |
Idaho |
799 |
47 |
148 |
43 |
Pennsylvania |
955 |
39 |
153 |
37 |
Illinois |
1,054 |
33 |
157 |
32 |
Rhode Island |
1,731 |
5 |
182 |
16 |
Indiana |
983 |
36 |
164 |
25 |
South Carolina |
1,303 |
17 |
182 |
17 |
Iowa |
913 |
42 |
132 |
48 |
South Dakota |
1,218 |
25 |
117 |
50 |
Kansas |
1,519 |
11 |
167 |
23 |
Tennessee |
1,259 |
21 |
189 |
8 |
Kentucky |
1,172 |
29 |
162 |
27 |
Texas (6) |
1,982 |
4 |
220 |
4 |
Louisiana |
2,037 |
1 |
236 |
2 |
Utah |
743 |
50 |
149 |
41 |
Maine |
936 |
41 |
149 |
39 |
Vermont |
947 |
40 |
151 |
38 |
Maryland |
1,125 |
31 |
157 |
33 |
Virginia |
1,080 |
32 |
149 |
42 |
Massachusetts |
1,617 |
8 |
186 |
9 |
Washington |
908 |
44 |
157 |
34 |
Michigan |
999 |
35 |
182 |
15 |
West Virginia |
968 |
37 |
185 |
12 |
Minnesota |
1,433 |
14 |
135 |
47 |
Wisconsin |
750 |
49 |
127 |
49 |
Mississippi |
1,622 |
6 |
252 |
1 |
Wyoming |
1,244 |
22 |
147 |
44 |
Missouri |
1,299 |
18 |
173 |
22 |
United States |
$1,272 |
|
$174 |
|
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(1) Includes state funds, residual markets and some wind pools.
(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) Texas data were obtained from the Texas 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: ©2022 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 Most Expensive And Least Expensive States For Homeowners Insurance Premiums, 2019 (1)
Rank |
Most expensive states |
Average expenditure |
Rank |
Least expensive states |
Average expenditure |
---|
1 |
Louisiana |
$2,037 |
1 |
Oregon |
$727 |
2 |
Oklahoma |
2,000 |
2 |
Utah |
743 |
3 |
Florida |
1,988 |
3 |
Wisconsin |
750 |
4 |
Texas (2) |
1,982 |
4 |
Nevada |
791 |
4 |
Rhode Island |
1,731 |
5 |
Idaho |
799 |
5 |
Mississippi |
1,622 |
6 |
Arizona |
850 |
6 |
Colorado |
1,618 |
7 |
Ohio |
853 |
7 |
Massachusetts |
1,617 |
8 |
Delaware |
908 |
8 |
Nebraska |
1,564 |
9 |
Washington |
908 |
9 |
Connecticut |
1,531 |
10 |
Iowa |
913 |
|
(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) Texas data were obtained from the Texas Department of Insurance.
Source: © 2022 National Association of Insurance Commissioners (NAIC). Further reprint or distribution strictly prohibited without written permission of NAIC.
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Percent Of Occupied Housing Units That Are Owner Occupied, 2021
State |
Percent |
Rank (1) |
State |
Percent |
Rank (1) |
---|
Alabama |
70.0% |
13 |
Montana |
69.5% |
17 |
Alaska |
66.8 |
35 |
Nebraska |
67.8 |
23 |
Arizona |
67.6 |
25 |
Nevada |
59.1 |
48 |
Arkansas |
67.0 |
32 |
New Hampshire |
72.5 |
7 |
California |
55.9 |
49 |
New Jersey |
64.4 |
40 |
Colorado |
66.8 |
35 |
New Mexico |
69.5 |
17 |
Connecticut |
66.6 |
37 |
New York |
55.4 |
50 |
Delaware |
72.6 |
6 |
North Carolina |
66.9 |
34 |
D.C. |
41.6 |
51 |
North Dakota |
63.1 |
45 |
Florida |
67.4 |
29 |
Ohio |
67.2 |
31 |
Georgia |
66.0 |
38 |
Oklahoma |
65.5 |
39 |
Hawaii |
62.6 |
46 |
Oregon |
63.8 |
42 |
Idaho |
71.9 |
8 |
Pennsylvania |
69.9 |
14 |
Illinois |
67.5 |
27 |
Rhode Island |
63.3 |
43 |
Indiana |
71.1 |
12 |
South Carolina |
71.8 |
10 |
Iowa |
71.9 |
8 |
South Dakota |
69.4 |
19 |
Kansas |
67.0 |
32 |
Tennessee |
67.5 |
27 |
Kentucky |
68.7 |
21 |
Texas |
62.6 |
46 |
Louisiana |
67.3 |
30 |
Utah |
69.7 |
15 |
Maine |
74.8 |
2 |
Vermont |
72.7 |
5 |
Maryland |
67.8 |
23 |
Virginia |
67.6 |
25 |
Massachusetts |
63.2 |
44 |
Washington |
64.0 |
41 |
Michigan |
73.2 |
3 |
West Virginia |
75.2 |
1 |
Minnesota |
73.0 |
4 |
Wisconsin |
68.1 |
22 |
Mississippi |
69.7 |
15 |
Wyoming |
71.4 |
11 |
Missouri |
68.8 |
20 |
United States |
65.4% |
|
|
(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 2019 West Virginia, Maine, Minnesota and Wyoming 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.
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Percent Of Renter Occupied Units Spending 30 Percent Or More Of Their Income On Rent And Utilities, 2021
State |
Percent (1) |
Rank (2) |
State |
Percent (1) |
Rank (2) |
---|
Alabama |
43.4% |
34 |
Montana |
37.9% |
50 |
Alaska |
45.0 |
25 |
Nebraska |
42.7 |
38 |
Arizona |
47.9 |
13 |
Nevada |
52.1 |
4 |
Arkansas |
39.9 |
47 |
New Hampshire |
42.6 |
39 |
California |
52.7 |
3 |
New Jersey |
48.9 |
9 |
Colorado |
50.5 |
5 |
New Mexico |
44.3 |
29 |
Connecticut |
49.1 |
8 |
New York |
50.3 |
6 |
Delaware |
47.0 |
16 |
North Carolina |
44.5 |
27 |
D.C. |
45.1 |
24 |
North Dakota |
38.5 |
49 |
Florida |
54.9 |
1 |
Ohio |
40.6 |
44 |
Georgia |
47.6 |
14 |
Oklahoma |
42.0 |
41 |
Hawaii |
53.4 |
2 |
Oregon |
48.6 |
10 |
Idaho |
43.2 |
36 |
Pennsylvania |
44.2 |
31 |
Illinois |
44.4 |
28 |
Rhode Island |
45.8 |
21 |
Indiana |
43.3 |
35 |
South Carolina |
44.9 |
26 |
Iowa |
41.2 |
42 |
South Dakota |
35.0 |
51 |
Kansas |
39.7 |
48 |
Tennessee |
43.9 |
33 |
Kentucky |
40.6 |
44 |
Texas |
47.5 |
15 |
Louisiana |
48.4 |
12 |
Utah |
45.3 |
23 |
Maine |
42.9 |
37 |
Vermont |
46.8 |
17 |
Maryland |
49.3 |
7 |
Virginia |
46.1 |
19 |
Massachusetts |
48.5 |
11 |
Washington |
46.3 |
18 |
Michigan |
46.1 |
19 |
West Virginia |
41.1 |
43 |
Minnesota |
45.5 |
22 |
Wisconsin |
40.6 |
44 |
Mississippi |
44.3 |
29 |
Wyoming |
44.0 |
32 |
Missouri |
42.2 |
40 |
United States |
47.4% |
|
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(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, 45.1 percent of renters spent at least 30 percent of their household income on rent and utilities in 2019.
- In 2019 North Dakota, South Dakota, West Virginia and Kentucky had the lowest percentage of rental units in which occupants spent 30 percent or more of their income on rent. Florida, California, Vermont and Hawaii had the highest percentage.
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