Owning a Home Just Got Pricier: Hidden Bills Hit $16K a Year

A new study from Zillow and Thumbtack shows the "hidden" costs of owning a home are climbing faster than household incomes -- and now total nearly $16,000 a year. The analysis found the average homeowner is spending about $15,979 annually, or roughly $1,325 a month, on expenses outside the mortgage. That includes maintenance, insurance, and property taxes -- costs that jumped 4.7% over the past year, outpacing income growth. Thumbtack's data shows basic upkeep alone -- things like HVAC servicing, gutter cleaning, roof repairs, lawn care, and water heater maintenance -- adds up to nearly $11,000 a year. Homeowners insurance is one of the biggest pain points. Premiums have climbed 48% nationwide since 2020. In some cities, the increases are even more extreme: Miami's typical premium is now $4,607, up 72% in five years. Rates have also soared in New Orleans, Sacramento, Atlanta, Jacksonville, Tampa, and Orlando. The squeeze is worst in major metro areas. Hidden homeownership costs now average $24,381 a year in New York City, $22,781 in San Francisco, and $21,320 in Boston. Analysts warn that the rising expenses are pricing out first-time buyers and straining current homeowners -- many of whom underestimate annual maintenance costs that can prevent far more expensive repairs down the road.