Homebuying is increasingly expensive, partly due to rising insurance rates.
In 2025, the median home sale price was $405,300, though prices can vary dramatically depending on the region. New home prices are $799,000 in the Northeast, while they're $366,100 in the South.
In addition to home price, buyers are also paying an average of $2,966 per year in homeowners insurance costs. This also varies by region: in Florida, home insurance premiums cost $9,449 annually on average, the most expensive in the country. Oklahoma, Mississippi, Louisiana and Nebraska also have average home insurance premiums that exceed $5,000 per year. Vermont has the cheapest home insurance costs at an average of $1,087 per year.
The cost could be stopping many people from buying a home. First-time homebuyers make up only 21% of home purchases today, compared to 24% in 2024 and 40% in 2008. The median age of first-time buyers is now 40 years old, a record high, and their down payments are lower, around 10% compared to 23% for existing buyers.
The slideshow above highlights the ways first-time and existing homeowners are shopping for insurance, according to The Zebra.
Photo credit: Archives
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