Owning a home comes with more than just monthly mortgage payments—hidden costs like maintenance, insurance, and property taxes can add thousands of dollars each year. According to a recent Zillow report, the average homeowner in the U.S. should expect to pay over $18,000 annually on these additional expenses in 2024, a number projected to rise in 2025. Insurance premiums, in particular, have surged in states prone to natural disasters, while routine upkeep continues to strain budgeting for homeowners across the country.
The expenses vary widely depending on location, with homeowners in states like New Jersey, California, and Massachusetts seeing the steepest totals, driven by high property taxes and insurance rates. Real estate experts recommend budgeting at least 1% of a home’s value annually for ongoing maintenance. As inflation and insurance costs climb, prospective buyers are encouraged to factor in these “hidden” costs when assessing home affordability.
Read more about Arizona home prices.
