Americans like the idea of owning single-family homes. Would they give that up if homeownership is too expensive?

A home buyer in 2019 could expect to spend about $20,000 a year on basic homeownership expenses: mortgage payments, property taxes, insurance, maintenance and repairs, according to data from Intercontinental Exchange and home-services marketplace Angi.

By 2025, that annual bill had soared above $28,500, outpacing inflation and keeping many would-be buyers out of the market . Homeowners who wish they could sell and move elsewhere are also staying put, turned off by the cost of purchasing today…

Home-insurance and property-tax costs have also climbed in many parts of the country, affecting home buyers and longtime owners alike.

Insurance costs have risen due to persistent natural disasters and increases in material and labor costs for home repairs. And rising home values have pushed up property-tax assessments, sparking pushback from voters in some states…

One of the appeals of the postwar American Dream was that owning a house could be as cheap or even cheaper – a claim in Levittown, for example – than renting. If homeownership was financially doable, Americans jumped at the opportunity.

The article cited above suggests a different story: homeownership has gotten more expensive. The costs have gone up more than inflation and it does not look like they will go down soon. (Interestingly, there is no mention of comparisons to rent costs.)

Given the decades-long interest in homeownership, how close to homeownership and renter costs have to be for people to choose buying a home? If Americans increasingly think of homeownership in economic and investment terms, what is the tipping point in the numbers?

If homeownership costs continue to go up more than inflation, it will be interesting to see what adjustments are made to help homeownership be within reach for more people. Different financial instruments? Higher wages? More housing programs?