The newest zillow homeownership costs report reveals that U.S. homeowners now pay an average of $15,979 each year in hidden, non-mortgage expenses. These costs—maintenance, property taxes, and homeowners insurance—have climbed faster than household income, creating a growing affordability challenge.
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Hidden Costs Add More Than $1,300 a Month
These extra expenses add up to about $1,325 per month, separate from mortgage payments. They include routine upkeep, rising insurance premiums, and tax obligations. Together, these factors are making homeownership more expensive than many buyers expect when they first calculate what they can afford.
What stands out in the latest data is the 4.7% increase in non-mortgage costs over the last year, compared to a smaller 3.8% rise in household income. That gap highlights why many Americans feel financially stretched even if their mortgage payment hasn’t changed.
Breakdown of Annual Hidden Costs
The report shows how these expenses stack up across the year:
- Maintenance: $10,946 per year
- Homeowners Insurance: $2,003 per year
- Property Taxes: $3,030 per year
Maintenance remains the largest non-mortgage cost. This category includes essential items like lawn care, repairs, HVAC servicing, roofing work, pest control, and other regular upkeep tasks that most homeowners cannot skip.
Insurance premiums continue to rise in many regions. This trend is strongest in areas with increased storm or wildfire risks, pushing annual expenses significantly higher than they were just a few years ago. Property taxes also continue to climb in many local markets as assessed values rise.
Large Metros See Surging Annual Costs
Homeowners living in major coastal metros face some of the highest numbers in the report. Cities with a combination of older housing stock, high insurance rates, and elevated property values bear the heaviest burdens.
Highest Annual Hidden Costs Among Large Metros
- New York City: More than $24,000 annually
- San Francisco: Above $22,700
- Boston: More than $21,300
Homeowners in these metros often deal with higher costs because the services and labor required for maintenance are expensive. Insurance premiums also tend to rise faster in coastal and high-value markets.
The sharpest increase in insurance costs continues in Florida, where premiums have surged due to a combination of market exits, storm-related claims, and rising replacement costs. In several Florida metros, average premiums have jumped over 70% within five years, making insurance one of the biggest contributors to rising annual homeowner expenses.
Why Non-Mortgage Costs Matter More Than Ever
With mortgage rates still elevated compared to historical norms, many buyers already feel stretched when they calculate monthly payments. The latest report underscores that the mortgage itself is only one piece of the financial picture.
Three major trends show why these hidden costs matter today:
1. Upkeep is unavoidable.
Skipping repairs or routine maintenance can lead to bigger and more expensive issues. Homeowners must account for ongoing labor and materials costs, which continue to rise across the country.
2. Property taxes follow home prices.
Even if the housing market cools in certain regions, assessed home values often remain high. This keeps taxes elevated and adds substantial recurring expenses to household budgets.
3. Insurance markets are shifting.
Some states are experiencing premium spikes due to climate-driven risks. Owners in Florida, California, and coastal regions face significant increases as insurers adjust to higher perceived risk and replacement cost inflation.
Which Homeowners Feel the Largest Impact?
While nearly every homeowner faces rising non-mortgage expenses, certain groups feel the pressure more intensely:
- First-time buyers who stretched their budget just to secure a home.
- Owners of older homes that require frequent repairs.
- Residents of high-risk insurance markets, especially in storm-prone or wildfire-prone regions.
- Homeowners in high-tax states such as New York, New Jersey, and parts of New England.
- Retirees on fixed incomes dealing with rising costs that outpace Social Security adjustments.
For these groups, hidden expenses can absorb a large share of income, making long-term planning more difficult.
What Buyers Should Consider Now
Prospective buyers can use several practical strategies to manage or avoid being surprised by these hidden costs:
Inspect Maintenance Liabilities
Homes with older roofs, aging HVAC systems, or deferred maintenance may require thousands in immediate repairs. Buyers should obtain detailed inspections to estimate upcoming expenses.
Check Local Insurance Premiums Before Bidding
Insurance varies dramatically by ZIP code. A home with an affordable mortgage but steep insurance premiums may end up outside the buyer’s realistic budget.
Review Property Tax Trends
Local tax history is a strong predictor of future increases. Buyers in high-growth communities or school districts should expect above-average annual taxes.
Build a Maintenance Budget
Experts recommend setting aside 1% to 2% of the home’s value each year for repairs, though complicated or older homes may require more.
Tips for Current Homeowners Navigating Higher Costs
For homeowners already facing rising bills, the report highlights several steps that help reduce long-term financial stress:
- Compare insurance providers regularly to ensure the best available rate.
- Invest in preventive maintenance to avoid costly emergency repairs.
- Plan for seasonal expenses, particularly for HVAC systems, landscaping, and pest control.
- Consider energy-efficient upgrades that lower utility and repair costs over time.
- Appeal property tax assessments when home valuations seem inaccurately high.
Consistent planning helps stabilize monthly expenses even when external costs climb.
A Growing Affordability Challenge
The Zillow Homeownership Costs Report reinforces that affordability challenges continue long after the closing date. Mortgage rates often receive the most attention, but non-mortgage costs directly influence a homeowner’s monthly financial health.
Because these hidden expenses now total nearly $16,000 annually, buyers and current homeowners must treat them as a core part of housing affordability calculations. With wages rising at a slower pace, U.S. households face a widening gap between income and the true cost of owning a home.
What do you think about the rising hidden costs of owning a home? Share your experience or stay updated as the market shifts.