You Just Have to Look at the Whole Picture.

There is no shortage of reasons to feel discouraged about buying a home right now. Home prices are higher than they were a few years ago, mortgage rates are higher, property taxes continue to matter, and homeowners insurance has become another expense getting more attention. Put all of those things together and it is easy to wonder whether buying a home still makes sense. I think it does, but I also think buying a home today requires looking at the entire picture rather than focusing on one number.

Homeowners Insurance Has Become a Bigger Part of the Conversation

Most people do not think much about homeowners insurance when they first start looking at houses. They think about the price of the home, the down payment, and what the mortgage payment might look like. Insurance is usually somewhere in the background until the renewal notice arrives and the premium is higher than expected.

That has become more common in recent years. Homes.com recently looked at the rising cost of homeowners insurance and found that premiums have increased substantially in many parts of the country. One example in the report showed that insurance on a $400,000 home could have gone from roughly $3,000 a year to nearly $4,000. That difference is about $80 per month, which is certainly worth considering when deciding what you can comfortably afford.

But I don't think the right takeaway is that rising insurance costs mean you should give up on buying a home. The better takeaway is that insurance should be part of the conversation from the beginning, rather than something you discover after you have already fallen in love with a house.

Your Monthly Cost Is More Than Your Mortgage

When buyers think about what they can afford, it is easy to focus on the mortgage payment. In reality, owning a home comes with several ongoing expenses, including property taxes, homeowners insurance, utilities, maintenance, and repairs. Looking at the entire cost gives you a much better idea of whether a home will actually fit comfortably into your life.

This is also why I think it is important to stop asking, "What is the most expensive home I can qualify for?" A better question is, "What monthly payment makes sense for me?" Those are two very different questions. A lender can tell you what you qualify for, but only you can decide what payment allows you to enjoy your home without feeling stretched every month.

That approach becomes even more important when costs such as insurance can change over time. Leaving some room in your budget gives you flexibility when taxes, insurance, utilities, or maintenance costs move higher.

Insurance Can Be Very Different From One Home to Another

Insurance is also one of those costs that cannot be judged simply by looking at the price of a house. Two homes with similar purchase prices can have very different insurance premiums depending on factors such as the age of the home, the condition of the roof, the cost to rebuild, the property's history, and its exposure to severe weather.

This matters here in Minnesota. Insurance costs have been under pressure as severe storms and the cost of repairs have increased. A 2026 report cited by the Minnesota Legislature found that average homeowners insurance premiums in Minnesota increased substantially during 2025.

The good news is that buyers have a relatively simple way to deal with this uncertainty: get an insurance quote before you buy the home. Knowing the actual cost of insuring a property gives you another piece of information to consider before making a decision. A home that costs a little more to purchase but has reasonable insurance costs may ultimately fit your budget better than a less expensive home that is expensive to insure.

This Is Where Buying Carefully Pays Off

One of the things I like about buying a home is that you get to make choices. You can choose the neighborhood, the property, the price range, and how much financial room you want to leave yourself. You can choose a newer roof over an older one, look closely at the mechanical systems, ask questions about previous insurance claims, and get an insurance quote before moving forward.

You can also have the home inspected and take the time to understand what you are buying. None of this guarantees that you will never have an unexpected expense. Homeownership comes with surprises from time to time. But making thoughtful decisions before you buy can greatly reduce the chances of being surprised by a cost you could have anticipated.

That is one reason I don't think today's market should discourage people from buying. It should encourage people to become better buyers.

There Is Another Side to the Cost of Owning a Home

The conversation about buying a home often focuses entirely on what it costs today. There is another side that deserves attention. When you buy a home, you are also building ownership in an asset. Over time, your mortgage balance can decline, the home may increase in value, and you have an opportunity to make improvements that suit your needs and lifestyle.

Of course, none of those things are guaranteed, and buying a home is not automatically the better financial decision for every person or every situation. There are good reasons to rent, particularly when flexibility is important or when someone is not financially prepared to take on the responsibilities of ownership. But for someone who is ready to buy and plans to stay in a home for several years, ownership can still be a very meaningful long term investment in both your finances and your lifestyle.

That bigger picture can get lost when every conversation about housing focuses on the latest mortgage rate or the latest increase in insurance premiums.

You Don't Have to Buy at the Perfect Time

I think this is where buyers can get themselves into trouble. They spend so much time trying to predict what mortgage rates, home prices, insurance costs, or the economy will do next that they forget to look at their own situation.

The perfect time to buy is impossible to identify in advance. A much better question is whether buying makes sense for you right now. Do you have stable income? Do you have money set aside after your down payment and closing costs? Can you comfortably handle the monthly payment? Are you planning to stay in the home long enough for buying to make sense? Most importantly, have you found a home that fits your needs and your budget?

If the answers are yes, you may not need to wait for the market to become perfect. You simply need to make a good decision based on the information available today.

There Is Actually Some Good News for Buyers

One of the more encouraging things about today's market is that buyers have more opportunity to think before they act. In many parts of Minnesota, there are more homes available than buyers had access to a few years ago, giving people more opportunities to compare properties and find something that fits their needs.

That changes the buying experience. You can look at the roof, the furnace, the taxes, the insurance, the neighborhood, and the overall condition of the home before deciding whether it makes sense. You don't necessarily have to make every decision under the fear that another buyer is going to take the house tomorrow.

That does not mean every home is a bargain or that sellers are desperate to negotiate. It simply means buyers have more opportunity to be selective, and I think that is a positive development.

Homeownership Is a Long Term Decision

There will always be another headline telling us why buying a home is difficult. Sometimes it will be mortgage rates. Sometimes it will be home prices. Sometimes it will be insurance. There will always be another factor that deserves attention.

But a home is not a one year investment for most people. It is a place to live and a long term financial decision. The goal should not be to predict every expense perfectly or find the exact bottom of the market. The goal is to buy a home you can comfortably afford, understand what you are buying, and give yourself enough financial breathing room to handle the unexpected.

That is still possible, and for many people, it can still be a very good decision.

The Bottom Line

Yes, homeowners insurance has become a bigger part of the cost of owning a home. Buyers should pay attention to it and understand what they are likely to pay before moving forward. But I don't think rising insurance costs are a reason to give up on the idea of homeownership. They are simply another reason to take a thoughtful approach to buying.

Before you fall in love with a house, find out what it will really cost to own. Get the insurance quote, look at the taxes, understand the condition of the home, consider the maintenance, and then look at the entire monthly payment. If the numbers work comfortably for your situation, you don't need to wait for everything in the housing market to become perfect.

The goal is not to find the cheapest house or to perfectly time the market. It is to find the right home at a payment that allows you to enjoy owning it.

There is still a lot to like about buying a home. You just have to look beyond the headline.