U.S. Homeownership Expenses Up 26% Over Four Years

According to a recent study, the average cost of owning and maintaining a single-family home in the U.S. is 26% higher than it was four years ago.

Bankrate’s Hidden Costs of Homeownership Study reveals that the cost of property taxes, homeowners insurance, home maintenance costs, electricity, internet and cable bills averages $18,118 annually for a typical single-family home valued at $436,291 in all 50 states, excluding Washington, D.C. That's an average of $1,510 per month on top of a mortgage payment.

Bankrate analyst Jeff Ostrowski said maintenance and insurance costs are the main reasons for increasing homeownership expenses. Home insurance rates rose 11.3% nationally last year. According to S&P Global Ratings, the insurance industry lost $101.3 billion as severe storms, hurricanes, and wildfires destroyed homes.

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Jennifer Schauer, who bought her California home in 2021, told CNN that her homeowners’ insurance doubled without notice and some of her neighbors lost their coverage altogether due to the threat of wildfires in the region.

 "My neighbors said I was lucky our insurance just doubled and it wasn't canceled," Schauer said.

She also recently discovered that her house needs about $10,000 for plumbing repairs.

"The housing market was so competitive when we bought that to get this house we waived the home inspection. We bought it as is," she said. "We knew the plumbing was old, but it's falling apart."

States With The Lowest Hidden Homeownership Costs

Rank	State	Average hidden homeownership costs
1.	Kentucky	$11,559
2.	Arkansas	$11,692
3.	Mississippi	$11,881
4.	Alabama	$12,258
5.	Indiana	$12,259

Source: Bankrate

The biggest percentage increases from 2020 to 2024 occurred in Utah (44%), Idaho (39%) and Hawaii (38%). The states with the smallest increases were Alaska (14%), Texas (14%) and Louisiana (15%).

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"Homeownership is an important wealth-builder for many Americans, but it ain't cheap," Ostrowski said. "These numbers show that the costs of owning a home are at the same level as buying a used car every year. While homeownership is worth the financial sacrifice, homeowners also need to be aware of the ongoing expenses that go along with owning a property."

Assuming owners of single-family homes allocate 2% of their home's value for maintenance annually, Hawaii and California have the highest home maintenance costs nationwide, with expenses of $19,860 and $16,966, respectively.

"No matter where you live, make sure you include some cushion in your monthly budget to absorb the shock of unplanned expenses," Ostrowski said. "After you achieve homeownership, you need to bolster your emergency savings account for all those surprise repairs."

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