Homeowners insurance premiums continue to spike. These Texans pay the biggest price.

Homeowners insurance in Texas has jumped fast — and it's hitting lower-income families the hardest. A Rice University Kinder Institute analysis found that by 2024, the average annual premium nearly reached $3,000, eating up 4.6% of the typical Texas county's median household income. That's up from 2.9% in 2009. For families earning 80% of the local median income, the burden rose even more steeply — from 3.7% to 5.8% of their annual income. The gap matters because homeownership is still one of the main ways families in the U.S. build wealth.

Two income groups tell the story clearly. Households earning 120% of the local median saw their insurance burden rise from 2.4% to 3.9% of income. Households earning 80% of the median saw it jump from 3.7% to 5.8%. That widening gap can push lower-income families out of the housing market at exactly the moment when owning a home would help them build financial stability. Lawmakers have debated solutions — including a bill to require state approval for rate increases above 10% and grants to help homeowners install weather-resistant roofs — but as of publication, no major relief has passed.

You can use this research to make smarter decisions about your own home costs and to stay informed as policymakers debate solutions. If you're a current or aspiring homeowner in Houston or anywhere in Texas, knowing that insurance is a significant chunk of your total housing cost helps you budget more accurately. You can shop your policy, ask about weather-resistant upgrades that may lower premiums, and track what the Texas Legislature is considering ahead of the 2027 session.

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Not location-specific

This issue connects directly to Houston's broader housing affordability conversation. Harris County and the Houston region face some of the state's highest exposure to severe weather — hurricanes, flooding, and winter storms — which drives insurance costs up faster here than in many other parts of Texas. If you're involved with a neighborhood association, a faith community, or a local advocacy group focused on housing, the data in this report gives you solid numbers to bring to those conversations.

Rising insurance costs are part of a bigger affordability squeeze. Between 2009 and 2024, the median Texas premium rose 74% after adjusting for inflation, while median household income grew only 11%. Major weather events — Winter Storm Uri in 2021 and Hurricane Beryl in 2024 — pushed costs up sharply. When insurance premiums outpace wages year after year, some families get priced out of buying a home altogether, which also means missing out on the long-term wealth that homeownership can bring.