Have you noticed your insurance bills going up lately? You’re not alone. According to Policygenius, the average home insurance premium rose 21% from May 2022 to May 2023. Combine that with rising housing costs, property taxes, and high-interest debt, and it’s no surprise that many Americans are feeling the financial strain. Whether you own your home or rent, knowing how to manage these rising costs can help protect your budget.
Managing Rising Housing Expenses For Homeowners
Invest in Home Maintenance
Proactive home maintenance can save you money over time. Regularly inspect your home for potential issues like roof damage or plumbing leaks. Addressing these problems early can prevent more expensive repairs and may even help lower your insurance premiums.
Consider Increasing Your Deductible
Raising your insurance deductible can reduce your monthly premium payments. If you don’t often file claims, the long-term savings can outweigh the higher out-of-pocket costs if something happens. However, this approach works best for those with an emergency fund.
Explore Property Tax Exemptions
You may be eligible for property tax exemptions that can provide substantial savings. Homestead exemptions lower the taxable value of your primary residence, while there are exemptions for seniors, veterans, and individuals with disabilities. Energy efficiency rebates may be available as well if you make home upgrades. Check with your local tax assessor’s office or their website to see what exemptions apply to you.
Managing Rising Housing Expenses For Renters
Negotiate with Your Landlord
If your rent is increasing, it may be worth having a conversation with your landlord. Be upfront about your situation and explore options for a smaller rent hike or locking in your current rate for an extended period. Landlords may be open to negotiating, especially if you’ve been a reliable tenant.
Consider Taking On a Roommate
Consider bringing in a roommate or subletting part of your apartment if your lease allows it. Sharing rent and utilities can significantly ease financial pressure, making it a more affordable living option while you save.
Review and Reduce Utility Costs
Lowering your utility costs can make a big difference. Simple steps like conserving energy, using energy-efficient appliances, and installing programmable thermostats can help. You can also ask your utility providers about flat-rate or budget billing plans to stabilize monthly expenses.
For Both Homeowners & Renters
Review, Update, and Bundle Your Insurance
Make sure your insurance policy adequately covers your home, belongings, and liability risks without over-insuring. Review your coverage to remove outdated items and shop around for better rates. Bundling home, auto, and life insurance policies can often lead to discounted premiums.
Consider Relocating
While moving can be costly upfront, relocating to a nearby city or suburb might offer lower housing costs in the long run. Many metropolitan areas have affordable options within commuting distance that could provide more sustainable living.
Seek Financial Support
Reach out to People Driven Credit Union to explore resources that can help you optimize your housing budget. If high-interest debt is a barrier to affordable living, our partner GreenPath Financial Wellness offers free financial counseling and a Debt Management Program designed to help you become debt-free in three to five years.
