Homeowners Are Facing $16,000 In Hidden Annual Costs, With Expenses Rising Faster Than Incomes Across The Nation
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Hidden costs like maintenance, property taxes and insurance now total nearly $16,000 a year nationwide, a new Zillow (NASDAQ:Z, ZG)) and Thumbtackanalysis found. It is highlighting something that many homeowners already feel: it’s getting more expensive to own a home, even after the mortgage is paid.
Coastal Cities See The Biggest Jumps
The national average for these hidden costs is $15,979 per year, or about $1,325 a month. That includes $10,946 in maintenance, $3,030 in property taxes, and $2,003 in insurance. While those figures alone are a burden for many, homeowners in large coastal cities are seeing even bigger bills. In New York City, hidden costs reach $24,381 a year. San Francisco homeowners pay around $22,781, and those in Boston pay roughly $21,320.
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These growing expenses are rising faster than wages. According to Zillow, over the past year, hidden costs jumped 4.7%, while household incomes only increased by 3.8%.
“It’s not just a budget line item. It’s a barrier to entry for aspiring first-time buyers and for families already stretched thin,” said Zillow’s Senior Economist Kara Ng in a statement. “Buyers who are already facing affordability challenges in today’s market need to understand and budget for these less obvious expenses when calculating how much home they can truly afford.”
Insurance Costs Climbing Fastest
Insurance premiums have become one of the fastest-growing expenses. Since early 2020, average premiums have jumped 48% nationally. In some areas, the increases are even worse. The analysis showed that Miami homeowners are now paying an average of $4,607 per year, a 72% increase over five years. Other Florida cities such as Jacksonville, Tampa and Orlando have seen similar spikes.
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Outside Florida, places like New Orleans, Atlanta and Sacramento, California, have all seen insurance premiums increase by more than 50% since 2020.
Why Maintenance Costs Matter
Homeowners are also spending thousands each year on upkeep. The analysis shows that the average homeowner pays almost $11,000 annually to maintain their home. That includes things like heating, ventilation and air conditioning servicing, roof and gutter repairs, lawn care and cleaning.
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