Hidden homeownership costs hit nearly $16,000 a year, Zillow says

U.S. homeowners now spend nearly $16,000 a year on maintenance, insurance and property taxes. Those costs are increasing faster than household incomes, according to an analysis from online real estate marketplace Zillow (Z) and Thumbtack, a home-services hiring platform.

Their report routine upkeep accounts for the biggest share of these hidden costs, averaging $10,946 a year. Homeowners typically spend another $2,003 on insurance and $3,030 on property taxes. Combined, those expenses add more than $1,300 a month to the cost of ownership. Over the past year, they rose 4.7%, slightly faster than the 3.8% increase in the typical household income.

Coastal markets feel the pinch

These costs are far higher in major coastal metros where housing is already among the most expensive in the country. Zillow’s analysis shows annual non-mortgage expenses averaging $24,381 in New York City, $22,781 in San Francisco and $21,320 in Boston. For many households in these regions, elevated mortgage payments and higher insurance and tax bills are squeezing affordability even further.

Insurance premiums surge

Home insurance has become one of the fastest-rising expenses for U.S. homeowners. Nationwide, premiums have climbed 48% since early 2020, reaching just over $2,000 a year. In some cities, the increases have been far sharper.

Miami homeowners now pay an average of $4,607 annually, up 72% in five years. Similar increases have hit other Florida metros, including Jacksonville, Tampa and Orlando. Outside the state, insurance costs have surged 79% in New Orleans, 59% in Sacramento, 58% in Atlanta and 56% in Riverside, Calif. Those jumps have far exceeded income gains, intensifying financial pressure on both new and longtime owners.

What the analysis includes

Zillow’s findings combine local tax and insurance data with Thumbtack’s real-world estimates of annual home maintenance projects, from HVAC service and roof repairs to lawn care and tree trimming. These costs, the companies note, represent the ongoing investment required to preserve a home’s condition (expenses that are often underestimated by first-time buyers focused on mortgage rates).

While homeownership remains a key path to long-term financial security, the report warns that rising maintenance, insurance and tax bills are reshaping what it truly costs to own. With mortgage rates still high and housing supply tight, understanding these hidden expenses may be critical for households preparing to buy or budget for the years ahead.