Skyrocketing Home Insurance Costs Are Threatening The U.S. Housing Market
FOR IMMEDIATE RELEASE
November 4, 2025
Contact: contact@insurancefairnessproject.com
Skyrocketing Home Insurance Costs Are Threatening The U.S. Housing Market
Tuesday, November 4 – A growing number of economists are warning that America’s housing market is becoming a drag on the overall economy, but a primary driver of the slowdown is largely being overlooked: skyrocketing insurance costs.
“Insurance is turning into the silent killer of housing affordability,” said Lizzy Price, spokesperson for the Insurance Fairness Project. “Premiums are acting like an invisible interest rate hike. Even families who can manage higher mortgages are being shut out by soaring insurance costs.”
Housing demand is shrinking as affordability collapses under the combined weight of high borrowing costs, rising property taxes, and surging insurance premiums, according to Newsweek. Earlier this year, Moody’s chief economist Mark Zandi upgraded his “yellow flare” on housing to a “red flare,” cautioning that homebuilders are already abandoning projects amid rising costs. Treasury Secretary Scott Bessent has similarly warned the economy is “at the tipping point” of a potential recession.
Experts point to insurance as a powerful driver of this crisis. Premiums in many high-risk regions have doubled, pricing buyers out of the market and forcing builders to walk away from new developments.
“Rising insurance costs aren’t just a problem for individual homeowners, they’re reshaping entire communities,” said Lizzy Price, spokesperson for the Insurance Fairness Project. “When families can’t afford coverage and builders walk away, the ripple effects hit local economies, schools, and small businesses, creating a housing crisis that goes far beyond the front door.”
Without urgent attention to the role of insurance, the housing slowdown could intensify, slowing economic growth and leaving millions of Americans unable to afford a home. Policymakers and industry leaders must act now to address rising premiums before the crisis deepens.
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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.
