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In line with many other living expenses, home insurance has been rising over the last several years. According to the Consumer Federation of America, the average annual home insurance premium for a typical homeowner increased by an average of $648 across the country from 2021 to 2024. Home insurance in Missouri increased by an average of 12% during that time span, while Illinois home insurance increased by a whopping 50%.

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Homeowners who locked into near-3% interest rates during 2020–2021 are now hesitant to sell, because it means buying another property that could require a 6% rate or higher. This “mortgage lock-in effect” is causing many would-be sellers to stay put, which means a smaller housing supply in St. Louis — and fewer options for eager buyers. 

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