The latest analysis report shows that Americans who own single-family houses not only have to pay monthly mortgage payments, but also incur considerable costs annually for home maintenance, insurance, property taxes, and other expenses. These hidden costs, often overlooked when buying a house, have been increasing year by year.
According to a research report jointly conducted by the online real estate platform Zillow and home service platform Thumbtack, overall homeownership costs have risen by 3% in the past year, with a cumulative increase of 32% over the past five years.
In the last five years, home insurance costs have increased by 54%, maintenance costs by 32%, and property taxes by 19%.
On average, American homeowners spend $16,566 annually on home maintenance, insurance, and property taxes, which is roughly an extra $1,380 per month in addition to their mortgage payments.
Specifically, the average annual cost for home maintenance is $11,171 ($931 per month), property taxes amount to $3,129, and home insurance is $2,266. Maintenance costs, comprising about two-thirds of the total, represent the largest expense.
The data published in the report indicates that cities with the highest hidden housing costs are mostly in coastal areas: New York at $25,111 annually, San Francisco at $24,383, Los Angeles at $22,915, and Boston at $22,096. The lowest cost city is Phoenix at $14,187.
Among the 30 major cities analyzed in the report, 19 have seen home insurance premiums increase by at least 50% over the past five years.
Dallas has experienced the highest increase at 75%, followed by Tampa at 71%, Denver at 70%, and Houston at 69%.
The analysis suggests that severe weather conditions such as hail, tornadoes, and strong winds may be contributing factors to rising insurance premiums.
Miami homeowners pay the highest insurance premiums, nearly $5,000 annually.
Six metropolitan areas have annual insurance costs exceeding $3,000, including Miami, Dallas, Houston, Tampa, Orlando, and Denver.
Homeowners in Houston, Phoenix, Denver, and Nashville are now paying more for insurance annually than property taxes.
Home maintenance costs remain the largest hidden expense in all regions. Six major cities have annual maintenance costs exceeding $12,000, with Seattle at $12,594 and Boston at $12,486.
Los Angeles has seen the largest increase in home maintenance costs, rising by 27% year-on-year, which analysts attribute to factors such as post-wildfire rebuilding, increased demand for home services, and high labor costs.
The annual growth rate of overall maintenance costs has been decreasing year by year, dropping from 9% in 2022 to 1% in 2026. Insurance premiums may follow a similar trend, as between February and June of this year, home insurance costs only rose by 0.3%.
Kara Ng, senior economist at Zillow, emphasized in the report that many families focus on house prices when buying a home but often underestimate the ongoing costs of homeownership. She advised buyers to carefully calculate their budget for insurance, taxes, and maintenance costs before making an offer on a property.
Kendra Sinclair, housing trends expert at Thumbtack, mentioned that the slower growth in maintenance costs is good news for homeowners, but proactive planning for regular upkeep is still necessary to avoid unexpectedly high repair bills.
Both companies recommend that prospective buyers obtain insurance quotes before making an offer, understand their actual purchasing power, plan maintenance expenses in advance, and consider purchasing townhouses or apartments as maintenance costs for large single-family homes are typically higher.