Skyrocketing Insurance Premiums and Property Taxes Are Pushing Families Over the Edge
WASHINGTON, DC – New reporting from the Wall Street Journal revealed this week that U.S. foreclosure filings surged in the first quarter of 2026 to nearly 119,000 properties — the highest level since 2020, and a 26% jump from the same period last year — driven in large part by fast-rising home insurance premiums and property taxes that are pushing homeowners past the breaking point. Unlocking America’s Future (UAF) has extensively documented how homeowners face skyrocketing insurance premiums as climate change increases the frequency and intensity of natural disasters while insurers systematically extract record profits.
Average annual home insurance bills climbed 12% last year alone to nearly $3,000, according to the Journal, and property taxes on single-family homes rose to an average of $4,427. For homeowners who bought in the last few years at elevated mortgage rates, these compounding costs are creating what one economist called a “layering effect” of financial distress — and many are losing their homes as a result.
“Millions of American families already know the costs of staying in their homes have become impossible to bear, and skyrocketing insurance costs are a key factor in driving up home foreclosure rates,” said Kyle Herrig, spokesperson for Unlocking America’s Future. “Our research shows that home insurance companies are a major reason why. Insurers are taking advantage of homeowners by gaming regulations and working with climate-denying politicians to make sure they come out on top — while working families pay the price.”
Wall Street Journal: High Housing Costs Are Pushing Foreclosures to a Six-Year High
“Homeowners who spend a bigger share of their housing costs on home insurance are more likely to be past due on their mortgage payments, according to an analysis by Intercontinental Exchange earlier this year.
Foreclosure-related legal requests rose 20% year-over-year in March, according to the LegalShield Consumer Stress Legal Index, which is calculated based on more than 150,000 attorney calls a month…
Mary Merenda fell behind on property-tax payments for her house in Barnesville, Pa., after her husband died. She also canceled her home-insurance coverage to save money.
“The expenses and everything else, it just overwhelmed me,” said Merenda, who is 63. She receives about $12,000 a year from Social Security, and her property taxes come to almost half of that.
She had already paid off her mortgage. But she had to take out a reverse mortgage last year to pay off her back taxes and prevent a pending foreclosure.
“Property taxes and insurance are squeezing older homeowners,” said Chris Mayer, chief executive of reverse-mortgage and senior home-equity lender Longbridge Financial.”
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