US homeownership costs rise due to maintenance and insurance

Homeowners in the United States are facing significant increases in the costs of maintaining property, with expenses rising sharply over the last several years. According to reports from Zillow, Thumbtack, and LendingTree, the hidden costs of ownership—including maintenance, insurance, and property taxes—now average approximately $16,566 per year, or about $1,380 per month, beyond mortgage payments.

Insurance premiums have seen the most dramatic surge, increasing by 54% over the last five years. Maintenance costs have also risen by 32% in that same period, while property taxes have grown by 19%. Additionally, the cost of typical home improvement projects has increased by 76% over the last decade, driven by higher labor and material costs.

These rising expenses are influencing housing market behavior. Many homeowners are choosing to renovate existing properties rather than relocate, as they seek to retain low pandemic-era mortgage rates. However, the increasing cost of upkeep and repairs is becoming a critical factor for both current owners and prospective buyers.