The latest zillow homeownership costs report highlights a reality many Americans are only now starting to grasp: owning a home requires far more than making a mortgage payment. This year’s analysis reveals that homeowners across the United States now face nearly $16,000 in hidden, non-mortgage expenses annually, a number that has risen faster than household incomes. As more buyers stretch their budgets to break into a competitive housing market, these lesser-known costs are having a greater influence on long-term financial stability.
Across the country, maintenance bills, property taxes, and homeowners insurance continue to surge. Many people plan for the monthly mortgage but underestimate the ongoing commitments required to maintain, protect, and comply with local regulations tied to their property. The new data shows how these costs accumulate and why they matter for both new buyers and long-time owners.
A Closer Look at the Nearly $16,000 in Annual Hidden Costs
The central finding of the report is that the average homeowner spends $15,979 per year on costs that are essential but often overlooked. These expenses break down into three major categories: maintenance, homeowners insurance, and property taxes. When combined, they amount to about $1,325 every month—a significant sum that can reshape a family’s budget.
Maintenance remains the biggest component, accounting for the majority of total hidden costs. This includes lawn care, roof repairs, HVAC servicing, plumbing issues, pest control, and routine upkeep required to keep a home safe and functional. While some items are seasonal and predictable, many are sudden, unpredictable, and expensive.
Homeowners insurance is another major driver of rising costs. Premiums have climbed dramatically in regions facing climate-related challenges, such as wildfire-exposed areas in the West and hurricane-prone states in the Southeast. Replacement costs for materials and labor have also increased sharply, making standard coverage more expensive nationwide.
Property taxes continue rising in many states as home values remain elevated. Local governments rely on these taxes to fund schools, public safety, parks, and infrastructure, which means increases are likely to continue in high-growth regions. The combination of higher assessed values and periodic rate adjustments has pushed annual tax bills to new highs in several markets.
How Hidden Costs Impact New Buyers in Today’s Market
The zillow homeownership costs report makes clear that hidden expenses are more important than ever for first-time buyers. Many new homeowners approach their purchase by determining the maximum monthly mortgage they can afford, only to discover that the “real” cost of owning a home exceeds their expectations.
These extra expenses create pressure in several ways:
- Reduced savings potential:
When unexpected maintenance bills or rising insurance premiums appear, new homeowners often tap into savings meant for emergencies or future investments. - Greater financial vulnerability:
Households living close to their spending limit may face stress when large repairs arise, such as roof replacements or foundational issues. - Tighter monthly budgets:
Those who qualify for a mortgage based on income alone may find their cash flow stretched thin once hidden costs are added. - Delayed upgrades or improvements:
Many buyers hope to renovate, but the need to pay essential upkeep often puts those plans on hold.
Because most buyers focus primarily on interest rates and home prices, these additional expenses can come as a shock. The report encourages future buyers to factor non-mortgage expenses into their affordability calculations early in the process.
Why Major Metros Face the Highest Hidden Costs
Large coastal metros carry some of the heaviest hidden costs in the nation. Cities with older housing stock, high demand for skilled labor, and elevated property values tend to experience the steepest increases.
New York City, San Francisco, and Boston top the list of metros with the highest annual hidden costs, each exceeding $21,000 to $24,000 per year. Residents in these regions often deal with older homes that require more frequent repairs, higher labor prices for maintenance work, and expensive insurance policies due to elevated home values.
Florida metros also experience pronounced increases. While homes in many parts of the state are newer, the rapid rise in insurance premiums and exposure to climate-driven storms have contributed to unusually high annual expenses. Homeowners in markets such as Miami, Tampa, Jacksonville, and Orlando have seen insurance become one of their most expensive recurring bills.
Insurance markets in states like California and Louisiana continue to shift as well. Some carriers have reduced coverage availability or adjusted policies substantially, contributing to upward pressure on premiums.
Understanding the Role of Maintenance in Rising Costs
Maintenance often surprises homeowners because it covers so many areas. While mortgage payments are predictable, maintenance expenses shift every month and often surface when least expected.
Some of the most common maintenance expenses include:
- Seasonal HVAC servicing
- Roof inspections and repairs
- Tree trimming and yard maintenance
- Pest inspection and treatment
- Plumbing and electrical repairs
- Exterior painting and pressure washing
- Gutter cleaning and drainage fixes
Larger homes, older properties, and houses with extensive landscaping tend to face higher maintenance costs. Meanwhile, labor shortages and material costs have driven up the price of repairs in many states. Buyers who underestimate these expenses may find themselves financially stretched even if they secure a competitive mortgage rate.
The Growing Influence of Insurance Premiums
Homeowners insurance has become one of the fastest-rising components of homeownership costs. Changes in weather patterns, increased natural disasters, and rebuilding expenses have all affected the insurance sector.
In some states, insurers have either exited the market or raised premiums sharply to offset higher claims and replacement costs. This shift has forced many homeowners to seek coverage through state-backed programs, which may offer limited options or higher overall costs.
Even in relatively stable insurance markets, rising construction prices have contributed to increased premiums. Homeowners must prove they can cover the cost of rebuilding their home, which grows more expensive each year as materials and labor become costlier.
Property Taxes: A Persistent Financial Burden
Property taxes form the third key component of the hidden cost equation. Local governments reassess values regularly, and in many fast-growing states, home values have risen quickly. These reassessments lead to larger annual tax bills even when rates remain unchanged.
In communities with strong schools, infrastructure improvements, or high demand, property taxes tend to rise consistently. For families on fixed incomes or new buyers stretching their budgets, these increases can significantly affect affordability.
Some states offer homestead exemptions or caps on annual increases, but these protections vary widely. Homeowners who relocate from states with low property taxes to states with higher taxes may experience significant sticker shock.
How Homeowners Can Plan More Effectively
While rising costs present challenges, homeowners can take steps to better manage their expenses:
- Perform regular maintenance to prevent costly repairs later.
- Shop for insurance annually to ensure the best available rate.
- Consider raising deductibles if savings allow.
- Appeal property tax assessments when valuations seem inflated.
- Build a yearly maintenance fund equal to 1%–2% of the home’s value.
- Track seasonal expenses to anticipate predictable annual cycles.
With better planning, homeowners can stay ahead of rising costs and reduce the financial stress associated with unexpected expenses.
Why the Zillow Report Matters for the Future of Homeownership
The zillow homeownership costs report provides an important reminder: affordability is more complex than purchase price alone. As hidden costs rise year after year, they influence when people buy, where they move, and how confidently they plan for the future.
These costs also shape broader economic trends, including housing inventory, migration patterns, and consumer spending. When homeowners spend more on taxes, insurance, and maintenance, they have less available for discretionary purchases, retirement savings, or emergency planning.
Homeownership remains a central part of the American dream, but achieving it now requires deeper financial awareness than in previous generations. The report’s findings help buyers and owners navigate that reality with a clearer understanding of what to expect.
How are hidden homeownership costs affecting your plans or your experience as a homeowner? Share your thoughts or stay informed as the market continues to evolve.