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Gulf Insider
21 hours ago
- Business
- Gulf Insider
US & China's Combined GDP Equals 184 Countries
The U.S. and China are in the midst of their second trade war in seven years. Earlier this year President Trump announced an initial 34% 'reciprocal' tariff rate on China, leading to a swift Chinese retaliation. For a brief period, both crossed into 100% territory (i.e., more than the entire cost of the goods itself). Experts cautioned that the resulting chaos could wipe off hundreds of billions from both economies and financial markets saw a swift downturn in response. Since then, tariff rates have come down: varying between 40โ50% on Chinese goods entering the U.S. and 10โ30% on U.S. products entering China. In this chart, Visual Capitalist's Pallavi Rao compares the combined GDP of the U.S. and China versus everyone else, using April 2025 data from the International Monetary Fund. The latest estimates for 2025 have America's and China's combined GDP at roughly $50 trillion. Of the two, the U.S. is much larger, at about $31 trillion, with China at $19 trillion. Rank Countries 2025 GDP(in Millions) 1 ๐บ๐ธ U.S. $30,507 2 ๐จ๐ณ China $19,232 3 ๐ฉ๐ช Germany $4,745 4 ๐ฎ๐ณ India $4,187 5 ๐ฏ๐ต Japan $4,186 6 ๐ฌ๐ง UK $3,839 7 ๐ซ๐ท France $3,211 8 ๐ฎ๐น Italy $2,423 9 ๐จ๐ฆ Canada $2,225 10 ๐ง๐ท Brazil $2,126 11 ๐ท๐บ Russia $2,076 12 ๐ช๐ธ Spain $1,800 13 ๐ฐ๐ท South Korea $1,790 14 ๐ฆ๐บ Australia $1,772 15 ๐ฒ๐ฝ Mexico $1,693 16 ๐น๐ท Tรผrkiye $1,437 17 ๐ฎ๐ฉ Indonesia $1,430 18 ๐ณ๐ฑ Netherlands $1,272 19 ๐ธ๐ฆ Saudi Arabia $1,084 20 ๐ต๐ฑ Poland $980 21 ๐จ๐ญ Switzerland $947 22 ๐น๐ผ Taiwan $805 23 ๐ง๐ช Belgium $685 24 ๐ฆ๐ท Argentina $684 25 ๐ธ๐ช Sweden $620 26 ๐ฎ๐ช Ireland $599 27 ๐ฎ๐ฑ Israel $583 28 ๐ธ๐ฌ Singapore $565 29 ๐ฆ๐ช UAE $549 30 ๐น๐ญ Thailand $546 31 ๐ฆ๐น Austria $534 32 ๐ณ๐ด Norway $504 33 ๐ต๐ญ Philippines $497 34 ๐ป๐ณ Vietnam $491 35 ๐ง๐ฉ Bangladesh $467 36 ๐ฉ๐ฐ Denmark $450 37 ๐ฒ๐พ Malaysia $445 38 ๐จ๐ด Colombia $428 39 ๐ญ๐ฐ Hong Kong $424 40 ๐ฟ๐ฆ South Africa $410 41 ๐ท๐ด Romania $403 42 ๐จ๐ฟ Czech Republic $360 43 ๐ช๐ฌ Egypt $347 44 ๐จ๐ฑ Chile $344 45 ๐ฎ๐ท Iran $341 46 ๐ต๐น Portugal $321 47 ๐ซ๐ฎ Finland $304 48 ๐ต๐ช Peru $303 49 ๐ฐ๐ฟ Kazakhstan $301 50 ๐ฉ๐ฟ Algeria $269 51 ๐ฌ๐ท Greece $267 52 ๐ฎ๐ถ Iraq $258 53 ๐ณ๐ฟ New Zealand $249 54 ๐ญ๐บ Hungary $237 55 ๐ถ๐ฆ Qatar $223 56 ๐บ๐ฆ Ukraine $206 57 ๐ณ๐ฌ Nigeria $188 58 ๐ฒ๐ฆ Morocco $166 59 ๐ฐ๐ผ Kuwait $153 60 ๐ธ๐ฐ Slovak Republic $147 61 ๐บ๐ฟ Uzbekistan $132 62 ๐ฐ๐ช Kenya $132 63 ๐ฉ๐ด Dominican Republic $128 64 ๐ช๐จ Ecuador $126 65 ๐ต๐ท Puerto Rico $123 66 ๐ฌ๐น Guatemala $121 67 ๐ช๐น Ethiopia $117 68 ๐ง๐ฌ Bulgaria $117 69 ๐ฆ๐ด Angola $113 70 ๐ป๐ช Venezuela $109 71 ๐ด๐ฒ Oman $104 72 ๐จ๐ท Costa Rica $103 73 ๐ญ๐ท Croatia $99 74 ๐ฑ๐บ Luxembourg $97 75 ๐จ๐ฎ Cรดte d'Ivoire $94 76 ๐ท๐ธ Serbia $93 77 ๐ต๐ฆ Panama $92 78 ๐ฑ๐น Lithuania $89 79 ๐น๐ฒ Turkmenistan $89 80 ๐ฌ๐ญ Ghana $88 81 ๐น๐ฟ Tanzania $86 82 ๐บ๐พ Uruguay $80 83 ๐จ๐ฉ DRC $79 84 ๐ฆ๐ฟ Azerbaijan $79 85 ๐ธ๐ฎ Slovenia $75 86 ๐ง๐พ Belarus $72 87 ๐ฒ๐ฒ Myanmar $65 88 ๐บ๐ฌ Uganda $64 89 ๐ง๐ด Bolivia $56 90 ๐น๐ณ Tunisia $56 91 ๐ฏ๐ด Jordan $56 92 ๐จ๐ฒ Cameroon $56 93 ๐ฒ๐ด Macao $53 94 ๐ฐ๐ญ Cambodia $50 95 ๐ง๐ญ Bahrain $48 96 ๐ฑ๐พ Libya $47 97 ๐ณ๐ต Nepal $46 98 ๐ฑ๐ป Latvia $46 99 ๐ต๐พ Paraguay $45 100 ๐ช๐ช Estonia $45 101 ๐จ๐พ Cyprus $39 102 ๐ญ๐ณ Honduras $38 103 ๐ฟ๐ผ Zimbabwe $38 104 ๐ธ๐ป El Salvador $37 105 ๐ฌ๐ช Georgia $35 106 ๐ฎ๐ธ Iceland $35 107 ๐ธ๐ณ Senegal $35 108 ๐ญ๐น Haiti $34 109 ๐ต๐ฌ Papua NewGuinea $33 110 ๐ธ๐ฉ Sudan $32 111 ๐ฌ๐ณ Guinea $30 112 ๐ฟ๐ฒ Zambia $29 113 ๐ง๐ฆ Bosnia &Herzegovina $29 114 ๐ฆ๐ฑ Albania $28 115 ๐ง๐ซ Burkina Faso $27 116 ๐น๐น Trinidad& Tobago $26 117 ๐ฆ๐ฒ Armenia $26 118 ๐ฌ๐พ Guyana $26 119 ๐ฒ๐ณ Mongolia $26 120 ๐ฒ๐น Malta $26 121 ๐ฒ๐ฟ Mozambique $24 122 ๐ฒ๐ฑ Mali $23 123 ๐ง๐ฏ Benin $22 124 ๐ณ๐ช Niger $22 125 ๐ฏ๐ฒ Jamaica $21 126 ๐ณ๐ฎ Nicaragua $21 127 ๐ฌ๐ฆ Gabon $20 128 ๐ฐ๐ฌ KyrgyzRepublic $20 129 ๐ฒ๐ฉ Moldova $19 130 ๐ง๐ผ Botswana $19 131 ๐น๐ฉ Chad $19 132 ๐ฒ๐ฌ Madagascar $19 133 ๐ฒ๐ฐ North Macedonia $18 134 ๐พ๐ช Yemen $17 135 ๐ฑ๐ฆ Laos $16 136 ๐ง๐ณ Brunei $16 137 ๐ฒ๐บ Mauritius $15 138 ๐จ๐ฌ Congo $15 139 ๐ง๐ธ The Bahamas $15 140 ๐น๐ฏ Tajikistan $15 141 ๐ท๐ผ Rwanda $15 142 ๐ณ๐ฆ Namibia $14 143 ๐ฒ๐ผ Malawi $14 144 ๐ธ๐ด Somalia $13 145 ๐ฌ๐ถ EquatorialGuinea $13 146 ๐ฒ๐ท Mauritania $11 147 ๐ฝ๐ฐ Kosovo $11 148 ๐น๐ฌ Togo $10 149 ๐ฒ๐ช Montenegro $9 150 ๐ธ๐ฑ Sierra Leone $8 151 ๐ง๐ง Barbados $8 152 ๐ฒ๐ป Maldives $7 153 ๐ง๐ฎ Burundi $7 154 ๐ซ๐ฏ Fiji $6 155 ๐ธ๐ฟ Eswatini $5 156 ๐ฑ๐ท Liberia $5 157 ๐ฉ๐ฏ Djibouti $5 158 ๐ธ๐ท Suriname $5 159 ๐ฆ๐ผ Aruba $4 160 ๐ฆ๐ฉ Andorra $4 161 ๐ธ๐ธ South Sudan $4 162 ๐ง๐ฟ Belize $4 163 ๐ง๐น Bhutan $3 164 ๐จ๐ซ Central AfricanRepublic $3 165 ๐จ๐ป Cabo Verde $3 166 ๐ฌ๐ฒ The Gambia $3 167 ๐ฑ๐จ Saint Lucia $3 168 ๐ฑ๐ธ Lesotho $2 169 ๐ฆ๐ฌ Antigua& Barbuda $2 170 ๐ฌ๐ผ Guinea-Bissau $2 171 ๐ธ๐จ Seychelles $2 172 ๐น๐ฑ Timor-Leste $2 173 ๐ธ๐ฒ San Marino $2 174 ๐ธ๐ง Solomon Islands $2 175 ๐ฐ๐ฒ Comoros $2 176 ๐ฌ๐ฉ Grenada $1 177 ๐ป๐บ Vanuatu $1 178 ๐ป๐จ Saint Vincent& the Grenadines $1 179 ๐ผ๐ธ Samoa $1 180 ๐ฐ๐ณ Saint Kitts& Nevis $1 181 ๐ธ๐น Sรฃo Tomรฉ& Prรญncipe $1 182 ๐ฉ๐ฒ Dominica $1 183 ๐น๐ด Tonga $1 184 ๐ซ๐ฒ Micronesia $1 185 ๐ต๐ผ Palau $0.3 186 ๐ฐ๐ฎ Kiribati $0.3 187 ๐ฒ๐ญ Marshall Islands $0.3 188 ๐ณ๐ท Nauru $0.2 189 ๐น๐ป Tuvalu $0.1 Note: Data missing for Afghanistan, Eritrea, Lebanon, Pakistan, Sri Lanka, Syria, and Palestine. If we skip the next three economiesโGermany, India, and Japanโthen the entire rest of the world (184 countries), also has an economic output of around $50 trillion. Which means that despite the rise of regional trade, there is no escaping one of the two economic giants. Groups 2025 GDP(in Millions) ๐บ๐ธ U.S. & ๐จ๐ณ China $49,739 ๐ 184 Countries $50,381 ๐ฉ๐ช Germany, ๐ฎ๐ณ India, ๐ฏ๐ต Japan $13,118 Note: Figures are rounded to the closest trillion in the visualization. China's figures do not include Hong Kong or Macao. The U.S. is the world's largest importer of consumer goods, and China is the largest exporter. Most of the world picks one of these two as their largest trading partner. So even when countries might not enjoy the geopolitics of both countries, their economic might effectively makes them the loudest voice in the room. Want more fun comparison maps? Check out: Germany's Economy Equals 22 Other European Countries Combined for regional-specific breakdowns.


Irish Times
3 days ago
- Business
- Irish Times
Ireland has good news because education is the fastest and most dependable way out of poverty
This week two global reports underscored the extraordinary education revolution that has taken place in Ireland. We are now the most educated country on the planet, above Singapore and Switzerland with 54 per cent of us holding a bachelor's degree or higher , according to Visual Capitalist โ a phenomenal achievement and one that should be celebrated. But another report on Ireland 's educational performance, also published this week, might be even more consequential. The OECD released fascinating research about who is doing well in universities across the globe. Traditionally, it is assumed that students from well-to-do families โ even lazy ones โ do better and are more likely to finish college than those from poorer backgrounds. The idea hinges on what is called 'kitchen table capital', meaning the conversations, role models, networks and aspirations that middle-class children observe while growing up. These factors mean that - around the world - even work-shy rich kids are more likely than their poorer counterparts to finish university. Depressingly, environment matters more than effort. In most countries, poorer students are more likely to drop out, take a job and do what their mates are doing, going to work and earning money, rather than persevering with education. Many don't see the point in foregoing cash today for potentially more cash โ and status โ tomorrow. In contrast, wealthier children, who can afford to forego working today and look forward to a more lucrative future, often remain on the parental 'payroll'. An interesting way to look at relative opportunity is through this prism of time frames. Middle-class people have longer time frames. Poorer people, worried about paying the bills today, have shorter time frames. They can't afford to plan because poverty obliterates the future. Getting through today is more urgent than thinking about tomorrow or next year. The result of this is that the class system persists. Students from less well off families are more likely to drop out as they can't fall back on family money to tide them over for those critical early-20s years. READ MORE This notion makes so much practical or common sense that it is assumed to be a fact, yet the latest comparative data suggests reasons for optimism, in Ireland at least. The OECD claims that โ in contrast to the norm all over the world โ Irish students from working-class backgrounds are doing well. More than 75 per cent of poorer students finish college, compared with 70 per cent of their richer counterparts. Meanwhile, in the US, 87 per cent of rich kids finish college, while only 70 per cent of students from poor backgrounds matriculate. After the Netherlands, Ireland is the country in Europe where most poor students who get into university complete their courses. This is good news because education is the fastest and most dependable avenue out of poverty. It has ever been thus. The 'where would you be without your education?' quip from generations of Irish mammies is accurate. Countries that invest in mass education, no matter how many anomalies and inefficiencies in the system, are rewarded with upward social mobility. The historic role of education in allowing millions of Irish people to live better lives is unambiguous, even if current economic realities are making that harder. The corollary is also the case. Countries and regimes that attack the education system, such as the Trump administration, will be punished with more, not less, 'left-behinds' in years to come. Given that the 'left-behinds' are a critical Maga constituency, the de-education of America might well be a cynical electoral strategy. For all its faults โ and the Leaving Cert is obviously problematic โ Ireland ranks fourth globally among OECD countries for college education attainment among 25-34 year olds at 63.4 per cent . This represents a dramatic transformation โ a 33-percentage-point increase from just 30 per cent in 2000 โ and nearly a doubling of the OECD average growth rate . Ireland also holds the second-highest third-level attainment rate in the EU 27 for the 30-34 age cohort and has one of the lowest early school-leaving rates across Europe . The comparison with Northern Ireland, which has a serious education attainment problem, is quite shocking. Comparing the North and the South is like a social laboratory test: same island, same people, different priorities, contrasting results. In education, the Irish State tries much harder. While many complain that we have far too many graduates at the expense of tradespeople, we should not forget the main point: education is the best way out of poverty. Education today is an investment in tomorrow. We can regard the surge in third-level education in this country as the second part of an intergenerational process which was kicked off with free second-level education in 1967. The ensuing transformation of the Irish class system is likely to be repeated again, this time through the prism of college education. While it is not yet clear who will benefit most from mass third-level education, previous generations offer a blueprint. The greatest beneficiaries of the introduction of free second-level education were not the urban working classes, but the descendants of smallholding farmers from the remote reaches of the country. In 1950, after 30 years of independence, Ireland was more dependent on agriculture than it had been in 1870. But the small farmers โ or, more accurately, their rural Irish mammies โ saw this dead-end coming and concluded that the only way out for the children who didn't get the farm was either emigration or the public service. A wonderful piece of research by two UCG sociologists, Damien Hannan & Patrick Commins , found that the single most important determinant of a county's educational achievement in the 1960s and 1970s was the number of small farmers. The more small farmers in a county, the better educated the children (boys and girls) and the better they did in their Leaving Cert. They even found that the single most successful subsection of the Irish population was the children of small farmers in east Galway. Compared to their urban, working-class counterparts, 30 per cent more children of small farmers did the Leaving Cert than working-class Dubs and 50 per cent more went on to third-level education. The authors concluded: ' Not only have the smallholders succeeded in retaining their property and relative income position, but they have also succeeded in capturing a significant proportion of local off-farm employment. They have been more effective than working-class families in utilising the education system to gain access to off-farm opportunities for their children .' The sons and daughters of small farmers became the new middle classes โ the 'CAO Class' โ of the Celtic Tiger era and now their kids constitute Ireland's professional class, moving on socially from where their parents left off, much richer and more educated than their grandparents could have ever imagined. This upward mobility is why the latest OECD data on Irish college dropout rates is so encouraging. Of course, it is only one data point and should not be overstated but, if this becomes a trend, a new social class might be emerging from poorer urban areas of Ireland. Such guarded optimism flies in the face of the relentless negativity about the 'left-behinds' and the 'atrophying' of Ireland's social fabric. Being among the best-educated populations in the world, and having more poor kids โ once they get to college โ graduating, can only benefit the country in the years ahead. An educated country is a more equal country. No one can deny the persisting class-based bias in our elite universities, but Ireland is going in the right direction. University access schemes such as HEAR (Higher Education Access Route), which offers places for those with fewer Leaving Cert points and extra support for high-ability students from deprived backgrounds, are essential and should be expanded. It takes time, but every poor kid who finishes college is a role model for others and society makes progress one mortar board at a time. That's what social mobility looks like. Let's frame it.
Yahoo
6 days ago
- Business
- Yahoo
ChatGPT's Rising Traffic Versus Other Top Websites [Infographic]
This story was originally published on Social Media Today. To receive daily news and insights, subscribe to our free daily Social Media Today newsletter. No matter how you look at it, ChatGPT has had a transformative impact on web usage trends, and the broader tech industry as a whole. Because while generative AI tools in a similar vein to ChatGPT have been in development for years, with Meta, Google, and many others exploring the possibilities of AI tech, no one had launched a user-friendly, conversational AI interface like ChatGPT, and that quickly made the app synonymous with the new tech. And while other AI models are improving, and likely already surpass ChatGPT in capacity and capability, that first-mover advantage has been huge for the platform, as you can see in this latest overview from Visual Capitalist. The chart below compares the web traffic data of the top 10 websites in April, as recorded by SimilarWeb. As per Visual Capitalist: 'The site saw a 13% increase in monthly traffic in April 2025, with features like image generation picking up popularity. Meanwhile, other most-visited websites like Google, YouTube, and Facebook all saw their monthly traffic decline in April. Wikipedia saw the sharpest fall at -6.1%, potentially signaling a slowdown in research activity or competition from AI-powered tools like ChatGPT. Social media site (formerly Twitter) followed with a -5.2% change in monthly traffic.' So even though many other AI alternatives are now available, ChatGPT is still gaining traffic, and becoming a key source of information for many users. That points to the shifting paths of online discovery, and the rising use of AI, for many purposes. It's worth considering what that means for user behaviors, and how that relates to marketing approaches.


The Star
26-05-2025
- Business
- The Star
AI isn't ready to be your therapist, but it's a top reason people use it
From falling in love with ChatGPT to deepfakes of deceased loved ones, artificial intelligence's potential for influence is vast โ its myriad potential applications not yet completely charted. In truth, today's AI users are pioneering a new, still swiftly developing technological landscape, something arguably akin to the birth of social media in the early 2000s. Yet, in an age of uncertainty about nascent generative AI's full potential, people are already turning to artificial intelligence for major life advice. One of the most common ways people use generative AI in 2025, it turns out, is for therapy. But the technology isn't ready yet. How people use AI in 2025 As of January 2025, ChatGPT topped the list of most popular AI tools based on monthly site visits with 4.7 billion monthly visitors, according to Visual Capitalist. That dwarfed the next most popular service, Canva, more than five to one. When it comes to understanding AI use, digging into how ChatGPT is being put to work this year is a good starting point. Sam Altman, CEO of ChatGPT's parent company, OpenAI, recently offered some insight into how its users are making the most of the tool by age group. 'Gross oversimplification, but like older people use ChatGPT as a Google replacement,' Altman said at Sequoia Capital's AI Ascent event a few weeks ago, as transcribed by Fortune. 'Maybe people in their 20s and 30s use it as like a life advisor, and then, like people in college use it as an operating system.' It turns out that life advice is something a lot of AI users may be seeking these days. Featured in Harvard Business Review, author and co-founder Marc Zao-Sanders recently completed a qualitative study on how people are using AI. 'Therapy/companionship' topped the list as the most common way people are using generative AI, followed by life organisation and then people seeking purpose in life. According to OpenAI's tech titan, it seems that generated life advice can be an incredibly powerful influence. A Pew Research Center survey published last month reported that a 'vast majority' of surveyed AI experts said people in the United States interact with AI several times a day, if not almost constantly. Around a third of surveyed US adults said they had used a chatbot (which would include things like ChatGPT) before. Some tech innovators, including a team of Dartmouth researchers, are leaning into the trend. Therabot, can you treat my anxiety? Dartmouth researchers have completed a first-of-its-kind clinical trial on a generative AI-powered therapy chatbot. The smartphone app-friendly Therabot has been in development since 2019, and its recent trial showed promise. Just over 100 patients โ each experiencing depressive disorder, generalized anxiety disorder or an eating disorder โ participated in the experiment. According to senior study author Nicholas Jacobson, the improvement in each patient's symptoms was comparable to traditional outpatient therapy. 'There is no replacement for in-person care, but there are nowhere near enough providers to go around,' he told the college. Even Dartmouth's Therabot researchers, however, said generative AI is simply not ready yet to be anyone's therapist. 'While these results are very promising, no generative AI agent is ready to operate fully autonomously in mental health where there is a very wide range of high-risk scenarios it might encounter,' first study author Michael Heinz told Dartmouth. 'We still need to better understand and quantify the risks associated with generative AI used in mental health contexts.' Why is AI not ready to be anyone's therapist? RCSI University of Medicine and Health Sciences' Ben Bond is a PhD candidate in digital psychiatry who researches ways digital tools can be used to benefit or better understand mental health. Writing to The Conversation, Bond broke down how AI therapy tools like Therabot could pose some significant risks. Among them, Bond explained that AI 'hallucinations' are known flaws in today's chatbot services. From quoting studies that don't exist to directly giving incorrect information, he said these hallucinations could be dangerous for people seeking mental health treatment. 'Imagine a chatbot misinterpreting a prompt and validating someone's plan to self-harm, or offering advice that unintentionally reinforces harmful behaviour,' Bond wrote. 'While the studies on Therabot and ChatGPT included safeguards โ such as clinical oversight and professional input during development โ many commercial AI mental health tools do not offer the same protections.' According to Michael Best, PhD, a psychologist and contributor to Psychology Today, there are other concerns to consider, too. 'Privacy is another pressing concern,' he wrote to Psychology Today. 'In a traditional setting, confidentiality is protected by professional codes and legal frameworks. But with AI, especially when it's cloud-based or connected to larger systems, data security becomes far more complex. 'The very vulnerability that makes therapy effective also makes users more susceptible to harm if their data is breached. Just imagine pouring your heart out to what feels like a safe space, only to later find that your words have become part of a data set used for purposes you never agreed to.' Best added that bias is a significant concern, something that could lead to AI therapists giving bad advice. 'AI systems learn from the data they're trained on, which often reflect societal biases,' he wrote. 'If these systems are being used to deliver therapeutic interventions, there's a risk that they might unintentionally reinforce stereotypes or offer less accurate support to marginalized communities. 'It's a bit like a mirror that reflects the world not as it should be, but as it has been โ skewed by history, inequality, and blind spots.' Researchers are making progress in improving AI therapy services. Patients suffering from depression experienced an average 51% reduction in symptoms after participating in Dartmouth's Therabot experiment. For those suffering from anxiety, there was an average 31% drop in symptoms. The patients suffering from eating disorders showed the lowest reduction in symptoms but still averaged 19% better off than before they used Therabot. It's possible there's a future where artificial intelligence can be trusted to treat mental health, but โ according to the experts โ we're just not there yet. โ The Atlanta Journal-Constitution/Tribune News Service
Yahoo
22-05-2025
- Business
- Yahoo
First-Time Buyers Beware: Homeowner's Insurance Rates Surge up to 59% in These Hot Markets
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Spiraling homeowner's insurance premiums are hitting first-time buyers hard, lifting typical home ownership expenses to budget-busting levels. According to the Consumer Federation of America, the average premium has jumped 24% in the last three years, from $2,656 in 2021 to $3,303 in 2024, costing Americans $21 billion. Leading the pack, Utah, Illinois and Arizona rates have soared 59%, 50% and 48%, raising stress levels in Salt Lake City, Chicago and Phoenix. It is getting prohibitively expensive for many younger professionals to buy their first homes. Those who do pass affordability requirements assume buying power will grow as careers mature and often take mortgages on the most expensive homes they can afford. Surging insurance premiums are upsetting those calculations, especially when added to rising property taxes, a tough job market and childcare costs that now average $12,472 per year, according to the Visual Capitalist. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm โ Inspired by Uber and Airbnb โ Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets โ What exactly is homeowner's insurance and why do you need it? The typical policy covers the main dangers of home ownership through four components: dwelling (the house), personal property (your stuff), liability (injury to others) and additional living expenses. Mortgage companies require proof of homeowner's insurance before they will lend you money. Once paid off, there is no legal requirement to maintain coverage, but the risk of 'self-insurance' can be catastrophic. Carriers blame rising premiums on inflation and climate change. The cost of materials to repair a home after a fire or fallen tree went ballistic following the pandemic and could spiral again if tariffs take hold. Their concerns with climate change stem from the devastating wildfires in recent years. Utah Insurance Commissioner Jon Pike drove this point home, telling the Utah Legislature's Business and Labor Interim Committee the record-breaking 59% hike was due to homes built along the Wasatch Front and other high-risk wildfire zones in the past decade. First-time home buyers can cross their fingers and hope rates come down or pray that career gods will be kind with big promotions. However, a better plan will follow these three simple steps to get ahead of this emerging crisis. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing โ Compare quotes from at least five carriers in your state or locality. You can do this anonymously online with just a ZIP code and reasonable estimate of home value. Then ask neighbors who insure their properties, and if they are satisfied with service and cost, because the cheapest quote isn't the best deal if the carrier turns down legitimate claims. Repeat this process annually because insurers may offer cheaper promotions to first-time customers and then hike premiums by double digits after the first year. Standard automated quotes may set deductibles lower than you need, depending on income and assets. So, It's a good idea to ask for pricing tiered on different deductibles so you can compare costs. Choosing the right liability limits is a tougher call. Picking a lower limit will save money initially but raise the risk of a legal judgment that exceeds coverage, forcing you to pay the balance out of your own pocket. Insurance carriers offer standard discounts when you bundle home and auto coverage. Policyholders also get a break after installing home security and fire safety systems. An upgrade as simple as a smoke detector could bring the premium down to a level that won't bust the bank. Other rebates offered regionally include new home, new roof, wildlife mitigation, water leak detection, green home and gated community/homeowner's association discounts. Read Next: , which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Invest Where It Hurts โ And Help Millions Heal: Image: Shutterstock Send To MSN: 0 This article First-Time Buyers Beware: Homeowner's Insurance Rates Surge up to 59% in These Hot Markets originally appeared on