The U.S. housing market is beginning to stabilize as climate change and regulatory pressures pose ongoing challenges to the sector, according to a report by Matic.
During the latter half of 2024, the data showed premium growth slowed significantly with new policies seeing average rate increases of just 6.6%, compared to 10.7% in the first half of the year.
“We’re seeing signs of improvement in the home insurance market,” said Ben Madick, CEO and co-founder of Matic. “Inflation has started to slow, easing the pressure on repair and claims expenses. On top of that, many carriers received long-awaited approvals for rate increases, which has helped them align premiums with current costs and return to profitability.”
According to Matic, large national carriers are returning to previously restricted states. As a result, the average number of quotes available per person increased by 60% compared to the year’s low point in March.
“While the industry is beginning to stabilize, premiums remain at record highs, and interest rates are expected to stay elevated through 2025,” said Madick.
U.S. homeowners now pay 17.4% more for new insurance policies, while the average homeowner who bought their policy in 2021 paid nearly 69% more at their 2024 renewal, or an extra $865 annually.
In 2025, the national average cost of home insurance for a policy with a $300,000 dwelling limit is about $2,304 per year, or roughly $192 per month, with details like location, age and square footage, deductibles, policy limits and the cost of building materials factored into the cost.
The slideshow above illustrates the easiest U.S. cities to buy a home as selected by Badeloft USA.
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