Understanding the Hidden Costs of Homeownership

FILE-Homes are shown in a neighborhood in Hercules, California, on Wednesday, Nov. 12, 2025. (David Paul Morris/Bloomberg via Getty Images)

Owning a home can get pricey considering all the costs associated with it, including mortgage payments. And while the management of household expenses can be a challenge, a new analysis from Zillow and Thumbtack reveals that the hidden costs of owning a house, like maintenance, insurance, and property taxes is now $15,979 annually in the U.S.

A Breakdown of Homeownership Costs

Why You Should Care: Zillow noted in its report that homeowners on average are spending $10,946 annually on maintenance, $2,003 on homeowners’ insurance, and $3,030 on property taxes. And this accounts for over $1,300 monthly in extra costs on top of mortgage payments.

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These costs rose by nearly 5% in the past year, while household income increased only 3.8%, which can contribute to making buying a home less affordable.

Hidden Costs are Higher in Some Cities

Local perspective: While the hidden costs are impacting homeowners across the country, some are feeling the financial squeeze even more with Zillow reporting that these costs were highest in already expensive coastal metro cities, like New York City ($24,381), San Francisco ($22,781) and Boston ($21,320).

Home Insurance Premiums Soaring

Dig deeper: Zillow found that home insurance premiums are one of the fastest growing homeownership expenses nationwide, with the average premiums having increased 48% since 2020.

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These spikes in home insurance premium costs are happening across Florida, with Miami homeowners paying an average of $4,607 a year, representing a 72% jump since 2020. Jacksonville homeowners also saw their premiums rise by 72%, while Tampa and Orlando these premiums soar 69% and 68%.

Additionally, home insurance premium costs also increased 79% in New Orleans, 59% in Sacramento, 58% in Atlanta, and 56% in Riverside, California.

Understanding the Impact of Hidden Costs

The hidden costs of homeownership can have a significant impact on a family’s budget. With the average homeowner spending over $1,300 per month on maintenance, insurance, and property taxes, it’s essential to factor these costs into your decision to buy a home. Additionally, the rising costs of home insurance premiums can be a significant burden for many homeowners, especially those living in areas prone to natural disasters.

Tips for Managing Hidden Costs

While the hidden costs of homeownership can be significant, there are steps you can take to manage them. Here are a few tips:

• Research the area: Before buying a home, research the area to determine the average cost of maintenance, insurance, and property taxes.
• Factor in hidden costs: When creating a budget, factor in the hidden costs of homeownership to ensure you can afford the expenses.
• Shop around: Shop around for home insurance premiums to find the best rate.
• Consider a home warranty: Consider purchasing a home warranty to protect against unexpected repair costs.

Conclusion

In conclusion, the hidden costs of homeownership can be significant, and it’s essential to factor them into your decision to buy a home. By understanding the breakdown of homeownership costs, the impact of hidden costs, and tips for managing them, you can make an informed decision and avoid financial stress. Remember to research the area, factor in hidden costs, shop around for home insurance premiums, and consider a home warranty to protect against unexpected repair costs.

Frequently Asked Questions

Here are some frequently asked questions about the hidden costs of homeownership:

• Q: What are the hidden costs of homeownership? A: The hidden costs of homeownership include maintenance, insurance, and property taxes.
• Q: How much do homeowners spend on hidden costs? A: According to Zillow, homeowners spend an average of $15,979 annually on hidden costs.
• Q: Which cities have the highest hidden costs? A: The cities with the highest hidden costs are New York City, San Francisco, and Boston.
• Q: How can I manage hidden costs? A: You can manage hidden costs by researching the area, factoring in hidden costs, shopping around for home insurance premiums, and considering a home warranty.
• Q: Why are home insurance premiums increasing? A: Home insurance premiums are increasing due to various factors, including natural disasters and rising construction costs.

The Source: Information for this story was provided by a new analysis from Zillow and Thumbtack on hidden homeownership cost. This story was reported from Washington, D.C.