Let\u2019s get started! <\/p>\n\n\n\n
We\u2019re Still (Almost) Number One <\/h2>\n\n\n\n
California has some of the highest housing costs in the nation. Only Hawaii has higher median home sale prices than the typical California sale price of $816,804. However, our state\u2019s \u201cWe\u2019re number two!\u201d slogan doesn\u2019t feel much like a boast unless you already own a home and you\u2019re thinking of putting it on the market. <\/p>\n\n\n\n
The real challenge here is that, while Californians pay almost double the average U.S. home cost<\/a>, state residents only enjoy a measly 15 percent median income advantage over workers from the rest of the country. That\u2019s why so many residents don\u2019t own their own real estate and are severely challenged in changing that status anytime soon. As for those who do own a home here, their monthly mortgage is a much higher portion of their income than it is most anywhere else nationally. <\/p>\n\n\n\n At least things aren\u2019t getting much worse in terms of California housing costs. It\u2019s predicted that home costs will lower \u2014 or at least not rise as steeply as they have traditionally \u2014 in 2023. Good news, right? <\/p>\n\n\n\n Ready for the bad? It\u2019s that this relative leveling off of the state\u2019s housing prices has to do with the high inflation rate hitting the country \u2014 now at around a 7.7 percent annual increase<\/a>. That and related factors have raised interest rates on home loans to the highest in decades. That\u2019s why housing costs are leveling off \u2014 because fewer Californians can afford to buy a home and make mortgage payments with those high interest rates. <\/p>\n\n\n\n This is a national challenge, not just one you\u2019ll see in the Golden State. There are various causes for new home construction woes, but, as with a lot of adverse economic news, it starts with the COVID pandemic. <\/p>\n\n\n\n During COVID, the availability of construction workers dried up. By the time the pandemic lost much of its steam, the challenge became a matter of being able to order and receive construction supplies from overseas. In short, the supply chain has wobbled, and builders and construction suppliers are having a hard time keeping up with demand all across the country. <\/p>\n\n\n\n Finally, recent inflationary bad news means that building costs have escalated beyond the means of many prospective new homeowners. In California, the state where home costs are already the second highest in the nation, this additional cost escalation is particularly painful. <\/p>\n\n\n If you\u2019ve read the rest of the post up to this point, you might not be surprised that home insurance is pricier than before as well. Remember, the cost of your insurance premiums must keep up with the cost of repairing and replacing your home in the event that you\u2019ve made a claim. <\/p>\n\n\n\n As inflation continues to dent the U.S. economy and the prices of homes and construction materials continue to rise, it\u2019s natural that insurance companies must match those cost challenges by raising the cost of your premiums. <\/p>\n\n\n\n Then there are the unique weather challenges that hit parts of our state. Consider California\u2019s notorious wildfires<\/a>, which cause billions of dollars in damages to commercial and residential property annually. A few years ago, it was estimated that 11.3 million Californians live in areas of the state at escalated risk of wildfires. <\/p>\n\n\n\n Your first challenge in this regard is to make sure your insurance company will even cover wildfire damage<\/a>. <\/p>\n\n\n\n Add to that fire risk the serious drought that has hit much of the state, along with the heightened risk in places for earthquakes and mudslides, and you can see the depth of the natural risks of living and owning a home in this state. <\/p>\n\n\n\n Fortunately, there are effective ways to fight back against this high cost by shopping carefully. Don\u2019t get a quote from just a single carrier and assume that this represents what you\u2019ll have to pay for coverage. After all, if you take into consideration the high costs of building or owning a home that you have little or no control over, it makes sense to take any advantage you can. <\/p>\n\n\n\n Your first, and probably most successful, strategy in finding the most affordable homeowners insurance is to conduct business with an independent agent. <\/p>\n\n\n\n Many insurance brokers work for a single insurance company. That means they can only sell you what their lone carrier has to offer, whether it\u2019s at the best market rate or the worst. <\/p>\n\n\n\n Independent brokers, on the other hand, have established contractual relationships with multiple insurers. This means that once they\u2019ve met with you and learned about the home you want to buy and what you can afford to pay for homeowners insurance, they can begin shopping for the best deals from among the several insurers they represent. <\/p>\n\n\n\n In this way, an independent broker is likelier to be able to find the best coverage at the most affordable rates. You could save significantly. <\/p>\n\n\n\n At Cost-U-Less Insurance, you\u2019ll find independent agents who can find you the homeowners insurance coverage you need at a price you can afford. Call us at (800) 390-4071<\/a> or get a quick quote online<\/a>. You can also always find a California Cost-U-Less location near you<\/a>.\u00a0<\/p>\n\n\n\nThere\u2019s Good News\/Bad News on CA Home Affordability <\/h2>\n\n\n\n
California\u2019s New Construction Start-Ups Are Lagging <\/h2>\n\n\n\n
![\"Young](\"https:\/\/www.costulessdirect.com\/blog\/wp-content\/uploads\/sites\/4\/2023\/02\/CUL-housing-market-trends-in-california2.jpg\")
<\/picture><\/figure><\/div>\n\n\nThe Cost of Home Insurance Continues to Rise for Californians <\/h2>\n\n\n\n
Finding an Advantage to Home Costs <\/h2>\n\n\n\n
Find Affordable Home Insurance in California Today <\/h2>\n\n\n\n