These states are making homeownership nearly impossible in 2026
“We get on it early on in the loan process because we don’t want the client to have sticker shock when they get their insurance quote, or it could jeopardize the loan because the traditional underwriting matrix for insurance doesn’t work anymore,” Germanides said.
A multistate squeeze brokers cannot ignore
The affordability pressure extends well beyond the West Coast. New York ranked among the most expensive states, with average Manhattan home prices reaching $2.9 million in the first quarter of 2026, according to C2ER, and average apartment rents in New York City approaching $6,000 per month. Rents statewide are the highest in the nation as a percentage of median income, according to ATTOM Data Solutions.
Florida, once an affordable outlier for its lack of state income tax, now carries the highest homeowners’ premiums in the country, according to Insurify, with a further 2% increase projected this year.
Colorado, meanwhile, is absorbing the worst of the national insurance crisis, with average annual premiums reaching nearly $4,000, roughly double the 2020 figure, and another 4% rise expected.
The full list rounds out with Hawaii, Rhode Island, Oregon, Connecticut, Illinois, and Washington, each receiving a D or D+ cost-of-living grade from CNBC.
