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Hidden costs like maintenance, property taxes and insurance now add up to nearly $16,000 a year nationwide, a new Zillow (NASDAQ:Z, ZG)) and Bug analysis found. This highlights something many homeowners already feel: It’s getting more expensive to own a home, even after paying off the mortgage.
The national average for these hidden costs is $15,979 per year, or about $1,325 per month. That includes $10,946 in maintenance, $3,030 in property taxes and $2,003 in insurance. While those numbers alone are a burden for many, homeowners in large coastal cities are facing even larger bills. In New York City, hidden costs reach $24,381 a year. San Francisco homeowners pay about $22,781 and Boston homeowners pay about $21,320.
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These rising expenses are rising faster than wages. According to Zillow, over the past year, hidden costs increased by 4.7%, while household income only increased by 3.8%.
“It’s not just a budget line item. It’s a barrier to entry for aspiring first-time buyers and for families already stretched thin,” Zillow’s chief economist said. Kara Ng in a statement. “Buyers already facing affordability challenges in today’s market should understand and budget for these less obvious expenses when calculating how much home they can realistically afford.”
Insurance premiums have become one of the fastest growing expenses. Since the beginning of 2020, average premiums have increased 48% nationally. In some areas, the increases are even worse. The analysis showed that Miami homeowners now pay an average of $4,607 per year, a 72% increase in five years. Other Florida cities such as Jacksonville, Tampa and Orlando have experienced similar spikes.
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Outside of Florida, places like New Orleans, Atlanta, and Sacramento, California, have seen insurance premiums increase by more than 50% since 2020.
Homeowners also spend thousands of dollars each year on maintenance. Analysis shows that the average homeowner pays nearly $11,000 a year to maintain their home. That includes things like HVAC maintenance, roof and gutter repairs, lawn care and cleaning.