Housing expenses in the U.S. have generally been on the rise, with the median monthly homeowner costs reaching $2,035, up from $1,960 when adjusted for inflation in 2023, as reported by the U.S. Census Bureau.

Homeowners with mortgages are allocating approximately 21% of their income towards mortgage payments, insurance, taxes, utilities, and additional fees, according to the report.

The primary factor for the increase in costs has been the rising mortgage rates. Although these rates have been decreasing recently, home sale prices continue to soar. A Redfin report highlighted that the median sale price is now about $393,000, marking a 1.7% increase from the previous year.

Home sales have experienced a slowdown, prompting some sellers to remove their listings from the market. Certain areas are beginning to stabilize, whereas others might not see improvement for several years, according to an analysis by Redfin.

The Trump administration is preparing to address the situation. Treasury Secretary Scott Bessent announced earlier this month the potential declaration of a national housing crisis this fall to aid in reducing costs for buyers.

Although specifics were not provided, Bessent suggested in an interview with The Washington Examiner that possible measures could include standardizing building and zoning codes at the local level and reducing closing costs.

Redfin chief economist Daryl Fairweather suggested that addressing local codes may be a worthwhile approach. 

“We need to override some of the local control that is holding back builders from being able to build in places where housing is needed the most,” Fairweather told Nexstar. This could include amending zoning requirements within a certain distance of federally funded buildings, highways, transit routes, or institutions.

It’s the construction of new homes that could help respond to the housing shortage prospective buyers are facing, Fairweather said. While there was some construction during the pandemic, Fairweather explained that “we’re still in this same place where buying a home is unattainable for many people who thought that home ownership would be part of their lives.”

It’s also construction that is bearing some of the burden from the Trump administration, according to Fairweather. Tariffs are impacting costs, she said, while immigration crackdowns are impacting staffing. In both areas, Fairweather suggested the Trump administration could “do some [policy] carve-outs…to make sure that they aren’t harming the construction industry.” 

“The more supply there is, the better,” she added.

Where are monthly housing costs the highest?

In every state, those with a mortgage are spending at least $1,200 a month on mortgage payments, insurance, taxes, utilities, and other fees, recently-released Census data from its 2024 community survey shows. 

The median monthly housing costs for homeowners in two places – the District of Columbia and California – exceed $3,000. Hawaii isn’t far behind at roughly $2,937. 

When compared with Census data regarding the median income for households with a mortgage, those in Hawaii are spending the largest portion of their monthly income – roughly 25% – on housing costs. 

Alternatively, it’s West Virginia where those with a mortgage are spending the least on monthly housing costs at $1,272, according to Census data. That equates to about 16% of their median monthly income, the lowest rate in the nation. 

West Virginia, Virginia, and Vermont are the only states to see monthly housing costs decline from 2023 to 2024.

The interactive map below shows the median monthly housing costs by state in 2023 and 2024, as well as the portion of their median income that those with a mortgage are spending on those costs. 

While any moves by the Trump administration may target new homes and construction, current homeowners may see relief in the near future, too. President Donald Trump predicted the Federal Reserve would enact a “big cut” to interest rates, which ultimately came true. In its first cut since December, the Fed lowered its short-term rate to about 4.1%, down from 4.3%.

Interest rates aren’t mortgage rates, but both rely on the same economic forces: interest rates, the job market, and bond markets. An adjustment to one may signal an impending change for another. 

Earlier this month, the average rate on a 30-year U.S. mortgage to 6.35, its lowest level in nearly 12 months. A year ago, the rate averaged 6.2%.

The Associated Press contributed to this report.