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growing number of homeowners are finding themselves paying more for insurance and property taxes than their mortgage payments, according to a recent study by Intercontinental Exchange. This trend is largely driven by rising home insurance costs due to natural disasters and increasing repair expenses, as well as surging property taxes resulting from rising home values.

    In some cities, the burden is particularly heavy. In Rochester and Syracuse, New York, as well as Omaha, Nebraska, New Orleans, and Miami, at least a quarter of mortgage holders spend more than half their monthly payment on taxes and insurance. In Rochester, 35% of homeowners pay over half their mortgage towards taxes and insurance, while in Syracuse the rate is 34%.

    These cities are known for high property taxes or expensive home insurance, with Rochester boasting a median property tax rate of 2.95%, significantly higher than both the national and state medians. Homeowners in Miami are also paying more for property insurance due to hurricane-related claims.

    Nationwide, taxes and insurance account for over half of the mortgage payment for nearly 9% of single-family homeowners, up from less than 4% in 2014. With mortgage rates remaining relatively high, despite recent cuts by the Federal Reserve, affordability will continue to be a challenge for many homebuyers. Experts predict that mortgage rates are unlikely to dip below 6% anytime soon, making it difficult for buyers to afford homes.