INSURANCE INCOME-DRAIN

Why insurance premiums are the new budget breakers

March 29, 2024

#28

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WELCOME

This year, over 45M people in the US will turn 35—the median first-time homebuyer age.

The largest age group in the country reaching a milestone birthday is a huge opportunity for agents and investors. If you know where to look, what to share, and how to reach them. 

Today’s best recs and new resources are a great place to start 👇

SHARPEN YOUR SKILLS

🔊 Today’s Top Podcast Rec:

The ability to tell a compelling story, whether you’re an agent or an industry pro, is a strength you can leverage in every conversation and connection point to create a widely successful career. That’s what makes realtor, producer, and fellow Estate Media host Jeffrey St. Arromand, one of the most compelling professionals in the Greater Brooklyn Area. Check out the latest episode of Glennda’s Guru for Jeffrey’s best advice on storytelling, helping buyers envision themselves in a space, and operating as a team.

MARKETS

The high cost of hazard coverage

Homeowner’s insurance is becoming one of the fastest-rising costs impacting affordability and slowing home sales. According to recent data from Freddie Mac’s March market outlook report, insurance premiums have risen dramatically since 2018—particularly in Louisiana, Oklahoma, Kansas, Nebraska, and Mississippi—alongside increasing home prices. Expensive natural disasters are partly to blame for the high premiums, but the bigger culprit is home prices. As home values grow, the cost of covering damage does too.

By the numbers:

  • Homeowners' insurance premiums rose 40.8% from 2018 to 2023, jumping from $1,081 per year to $1,522 for a single-family home with a 30-year fixed-rate mortgage.

  • In high-cost markets like Louisiana and Oklahoma, homeowners pay an average of $8 in insurance premiums for every $1,000 in home value, compared to just $2.50 in low-cost markets like Washington or Oregon. 

  • Today, homeowners insurance takes up between 1.64% and 2.5% of the average borrower’s income.

REC ROUNDUP

The Friday Five

📖 Pullman property. Would you live in this retrofitted 1920s train car?

👀 Whole new ballgame. The story behind the new home of the Las Vegas A’s.

👀 Developer drama. The $38M listing no one’s allowed to live in. 

💡 Aim for adaptability. Josh Flagg and Tracy Tutor’s advice for staying adaptable as a new agent.

💡 Life after TikTok. How to protect your personal brand from a potential TikTok ban.

WHAT’S NEW FROM ESTATE MEDIA

Staying true to Staten Island

Anthony Bernardo, aka Tony B of @island_wide_realty is a Staten Island agent, entrepreneur, and content creator that isn’t afraid to tell it like it is—again and again and again. In the latest episode of Rise Above the Ranks, James and David interview Tony B about gaining traction on TikTok and Instagram and staying true to yourself through your content. Check out the full interview for Tony’s take on consistency, leaning on your background, and what’s next for Island Wide.

Los Feliz Grandeur Haven

Surrounded by over 39,000 square feet of lush grounds, today’s featured listing offers privacy, panoramic city views, and all the historical opulence of classic Spanish Colonial Revival architecture. Tap to view the best amenities of this luxe listing, including its spa-like primary bath, hidden library, 2,500-bottle wine cellar, and spacious guest house—all in the heart of Los Angeles.

estate-elegance.beehiiv.com/p/los-feliz-grandeur-haven

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WAS the Newsletter. Explore interior design advice and inspiration. Every Friday.

The Blueprint. Stay up-to-date on the world of residential real estate. Powered by James Harris & David Parnes. Every Tuesday and Friday.

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