Hidden costs of homeownership have risen significantly and now amount to approximately $16,566 per year, or roughly $1,380 monthly in addition to mortgage payments, according to a new report by Zillow and Thumbtack [1]. These hidden costs have increased by nearly one-third over the last five years, driven primarily by surging insurance premiums, maintenance expenses, and property taxes [1]. The breakdown reveals that homeowners face $11,171 in annual maintenance costs, $2,266 for homeowners insurance, and $3,129 in property taxes [1].
Insurance premiums have experienced the most dramatic growth, rising 54% over the past five years, while maintenance costs increased 32% and property taxes grew 19% during the same period [1]. Overall homeownership costs increased 3% in the last year but are up 32% over five years [1]. However, recent data shows signs of moderation: maintenance cost increases have slowed from 9% in 2022 to just 1% in 2026, and insurance premiums rose only 0.3% between February and June 2026 [1].
Regional variations are substantial, with insurance premiums rising at least 50% over five years in 19 of 30 metros analyzed [1]. The largest increases occurred in Dallas (75%), Tampa (71%), Denver (70%), and Houston (69%), potentially driven by severe weather including hail, tornadoes, and damaging winds [1]. Maintenance costs exceeded $12,000 annually in six major metro areas, with Seattle ($12,594) and Boston ($12,486) leading the nation [1]. Los Angeles experienced the sharpest year-over-year maintenance increase at 27%, attributed to wildfire-related recovery efforts, heightened demand for home services, and elevated labor costs [1].
Zillow Senior Economist Kara Ng emphasized that many households underestimate the true cost of homeownership, stating: "Many households focus so much on winning the home and underestimate what it costs to live in it. Long after they receive the keys, insurance, taxes and upkeep are recurring expenses to plan for" [1]. The analysis underscores the importance for home shoppers to understand regional cost variations and calculate total affordability before making offers [1].
CONCLUSION
Hidden homeownership costs have become a significant financial burden, reaching $16,566 annually with insurance premiums leading a 32% five-year increase. While recent growth has moderated, substantial regional variations persist, requiring prospective homebuyers to carefully evaluate total affordability beyond mortgage payments. This trend has important implications for housing affordability and consumer financial planning across U.S. markets.