The Fact
The 2024 American Community Survey reported that median selected monthly owner costs for households without a mortgage equaled 11.4% of household income.
What This Means
Owning a home free and clear materially reduces housing costs, but it does not eliminate housing as a continuing claim on household income. Retirement plans that mentally set housing cost to zero after payoff miss recurring ownership expenses.
Sources
- U.S. Census Bureau, 2024 ACS Table B25092: https://data.census.gov/table/ACSDT1Y2024.B25092