The cost of owning a home in the United States has reached a new high. A recent analysis by Zillow and Thumbtack shows that routine expenses beyond mortgage payments now add up to almost 16,000 dollars a year. These costs include maintenance, insurance and property taxes. For many households, these expenses are rising faster than incomes, putting more pressure on family budgets.
The report comes at a time when mortgage rates remain elevated and demand in many markets continues to slow. For first-time buyers in the U.S., these hidden costs are becoming a major factor in deciding when to purchase a home.
Key Takeaways On Zillow Homeownership Costs Report
- Hidden homeownership costs now average 15,979 dollars per year.
- Routine maintenance is the largest share at 10,946 dollars annually.
- Property taxes add 3,030 dollars and insurance adds 2,003 dollars.
- Costs rose 4.7 percent in one year, outpacing income growth.
- Coastal metros like New York, San Francisco and Boston report the heaviest financial load.
- Insurance premiums have jumped 48 percent since 2020.
- Miami homeowners pay an average of 4,607 dollars for insurance alone.
Rising Ownership Costs Across the U.S.
The Zillow-Thumbtack report highlights how much homeowners spend beyond their mortgage. Routine upkeep remains the biggest expense. Households pay over 10,900 dollars a year for services like HVAC checks, roof repairs, lawn care and exterior work. These tasks are essential because they prevent major damage and help maintain property value.
Property taxes and insurance form the next major cost. Taxes add more than 3,000 dollars a year on average. Insurance adds about 2,000 dollars a year. Together, these expenses increase the total ownership cost by more than 1,300 dollars every month. The yearly rise of 4.7 percent is higher than the 3.8 percent increase in typical household income.
This widening gap shows why affordability concerns are growing in several states. Many families already struggle with high home prices and loan rates. Hidden costs now add another layer of financial strain.
Coastal Markets Face the Hardest Impact
The report shows a sharp divide between inland cities and coastal metros. Non-mortgage costs in New York City reach 24,381 dollars a year. San Francisco follows at 22,781 dollars. Boston stands at 21,320 dollars. These regions are among the costliest housing markets in the U.S., and hidden expenses push affordability even further out of reach.
In these cities, owners deal with high tax rates, higher service charges and stronger insurance requirements. When combined with elevated mortgage payments, the total burden becomes significant for both new and existing homeowners.
Suburban households face lower costs, but the gap has been shrinking due to rising insurance and upkeep expenses. This trend affects mobility and home-buying decisions across the country.
Insurance Premiums Surge Faster Than Incomes
Insurance has become one of the fastest-rising homeownership expenses. The average premium has increased 48 percent since 2020. This rise is driven by extreme weather, higher repair costs and state-level insurance market changes.
Some cities have seen even sharper increases. Miami homeowners pay 4,607 dollars a year. This is a 72 percent increase in five years. Jacksonville, Tampa and Orlando follow closely with large jumps. Beyond Florida, premiums have climbed 79 percent in New Orleans, 59 percent in Sacramento, 58 percent in Atlanta and 56 percent in Riverside.
These numbers show that insurance is no longer a small part of the annual budget. It has become a major challenge for owners, especially in disaster-prone regions.
Breakdown of Hidden Homeownership Costs
- Maintenance – 10,946 dollars a year
Homeowners spend the most on routine upkeep. This includes roof checks, plumbing work, AC servicing, lawn care and small repairs. These tasks prevent larger damage. Families who skip maintenance often face bigger expenses later. The report notes that many first-time buyers underestimate this part of ownership. - Property Taxes – 3,030 dollars a year
Taxes vary by state, but the national average remains high. Local governments adjust rates based on home values and budgets. As property values rise, tax bills rise too. This creates long-term pressure for households in fast-growing areas. - Insurance – 2,003 dollars a year
Premiums have increased sharply due to climate risks and higher claim costs. Some regions now face double or triple the national average. For many families, this has become the most unpredictable part of their annual budget.
Why These Costs Matter for Buyers
The report stresses that buyers must consider hidden expenses from the beginning. Mortgage rates remain elevated, and supply in many U.S. markets is tight. When added to high home prices, extra yearly costs of nearly 16,000 dollars can reshape buying power.
Many prospective buyers rely on affordability tools. These tools help estimate taxes, insurance and yearly upkeep. Zillow also notes that buyers should consider home type. Larger single-family homes usually have higher maintenance costs. Condos and townhomes may offer lower upkeep due to shared services.
A clear understanding of ongoing expenses can prevent financial stress after purchase. This guidance is becoming more important as markets shift toward buyer-friendly conditions in several regions.
Looking Ahead: What Households Should Expect
The report warns that hidden costs will continue rising. Extreme weather, material shortages and service-sector inflation are all driving expenses upward. Households preparing to buy must plan a wider budget that goes beyond mortgage payments.
Existing homeowners also face challenges. Rising insurance rates and tax adjustments may pressure long-term affordability. Many families are already stretched by other living costs, making these increases harder to manage.
Despite the challenges, homeownership remains a long-term wealth-building path in the U.S. Regular upkeep helps preserve property value, and stable ownership offers financial security over time. But the path requires better planning than ever before.
