H
omeownership in the US is no longer seen as a reliable path to financial security, as rising property taxes and insurance premiums are pushing more homeowners into delinquency. According to new data from Cotality, serious mortgage delinquencies have reversed their decline since mid-2024, with nearly half of all states experiencing an increase.

    Florida has seen property taxes surge 50% over the past five years, while average escrow payments have jumped 62%. In South Carolina, 14 insurers left the market between 2020 and 2023, driving up premiums. Georgia's average property tax bills rose by over $700 in just five years, as home prices increased 65%.

    Government-backed loans, such as FHA or VA mortgages, are disproportionately at risk due to their lower down payments and lack of cushion when costs escalate. Cotality reports that serious delinquency rates for FHA loans are five times higher than those of conventional mortgages.

    Nationwide, property tax bills have risen over 15% since 2019, with more than half of states with the worst delinquency rates also reporting unemployment above the national average. Mississippi now holds the nation's highest overall delinquency rate, and natural disasters like Hurricane Helene in Asheville, North Carolina, are exacerbating the crisis.

    As costs rise, homeowners are being forced to choose between paying their mortgage or covering other essentials, with some opting to walk away from their homes altogether. This shift has broader implications for the housing market, making ownership look less appealing and more like a liability than an asset. The traditional pitch of locking in housing costs and building equity over time is no longer reliable, as taxes and insurance continue to spike year after year.