A recent report highlights that expenses related to homeownership, such as maintenance, insurance, and property taxes, are outpacing the growth of household incomes.
WASHINGTON — New findings from Zillow and Thumbtack reveal that the often-overlooked costs of owning a home have surged to nearly $16,000 annually across the United States, outstripping the rise in most household incomes. The analysis estimates that the average homeowner now incurs expenses amounting to $15,979 each year, or approximately $1,325 monthly, beyond their mortgage payments. These costs include maintenance, homeowners insurance, and property taxes, which have collectively increased by 4.7% over the past year. In contrast, household incomes have only grown by 3.8% during the same period.
Zillow’s estimates cover local property taxes and insurance premiums, while Thumbtack has calculated the annual maintenance costs using real project data from both homeowners and service professionals. Maintenance expenses encompass tasks such as HVAC upkeep, roof repairs, lawn care, gutter cleaning, tree trimming, and water heater servicing.
The financial burden is particularly severe in high-cost cities along the east coast. In New York City, hidden costs of homeownership now average $24,381 annually, with San Francisco and Boston following closely at $22,781 and $21,320, respectively.
Zillow identifies rising homeowners insurance premiums as a significant factor in the increased costs. Nationally, these premiums have jumped by 48% since early 2020. In Miami, for instance, the typical annual insurance cost has climbed to $4,607, marking a 72% increase in a little over five years. Other Florida cities, such as Jacksonville, Tampa, and Orlando, have experienced similar upward trends.
Zillow says one of the biggest drivers of rising costs is homeowners insurance. Premiums have surged 48% nationally since early 2020. For example, in Miami, the typical annual premium is now $4,607, up 72% in just over five years. Other Florida cities, including Jacksonville, Tampa and Orlando, have also seen similar spikes.
Outside Florida, premiums jumped 79% in New Orleans, 59% in Sacramento and 58% in Atlanta.
“Insurance costs are rising nearly twice as fast as homeowner incomes,” Kara Ng, senior economist at Zillow said. “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.”
“Home maintenance is often one of the most overlooked parts of owning a home when it comes to budgeting for the year,” Morgan Olsen, Thumbtack home expert said. “Think of preventative maintenance as a safety net for your biggest asset. Spending a little each season helps spread out costs and keeps your home prepared for whatever the weather brings.”
