ThumbtackHome Resource CenterHow Rising Costs Are Reshaping the True Price of Owning a Home

How Rising Costs Are Reshaping the True Price of Owning a Home

Morgan Olsen•Thumbtack’s Home Design Expert•Last updated Nov 14, 2025

Last updated Nov 14, 2025

Insurance costs soar across the country
How to prepare for hidden costs
How we crunched the numbers

If you own a home — or are dreaming of buying one soon — you probably know about the big expenses: your mortgage, utilities, and maybe even the occasional repair. But a new Zillow and Thumbtack analysis reveals that the hidden costs of homeownership are climbing faster than most people’s paychecks can keep up with.

Nationwide, these less-visible expenses now add up to $15,979 per year, or about $1,325 a month on top of your mortgage. That’s everything from property taxes and homeowners insurance to the annual cost of keeping your home in working order.

Here’s how the average U.S. homeowner’s hidden costs break down:

$10,946 on maintenance
$2,003 on homeowners insurance
$3,030 on property taxes

Together, those costs rose 4.7% over the past year, while household incomes increased just 3.8%. The squeeze is sharpest in major coastal cities — homeowners in New York City spend an average of $24,381 each year on hidden costs, followed by San Francisco ($22,781) and Boston ($21,320).

Insurance costs soar across the country

Since early 2020, homeowners insurance premiums have jumped 48% nationwide, now topping $2,000 annually for the typical home. In some areas, the increases are staggering: in Miami, the average premium has risen 72% in five years to $4,607 per year. Other Florida metros have seen similar spikes, including Jacksonville (72%), Tampa (69%), and Orlando (68%).

Outside Florida, premiums are also climbing fast — up 79% in New Orleans, 59% in Sacramento, 58% in Atlanta, and 56% in Riverside, California.

“Insurance costs are rising nearly twice as fast as homeowner incomes,” said Kara Ng, Zillow senior economist. “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. Buyers who are already facing affordability challenges in today’s market need to understand and budget for these less obvious expenses when calculating how much home they can truly afford.”

How to prepare for hidden costs

Buying a home is one of life’s biggest milestones — but keeping it running smoothly is a lifelong project. Here are four tips to help you plan ahead:

Know your true buying power. Start with BuyAbilitySM, a personalized affordability tool available on the Zillow app. It allows you to set a target monthly payment, which can be adjusted to account for these costs.
Plan for maintenance costs early. Homeownership doesn’t end on closing day. Using Thumbtack’s free personalized maintenance guides, available on the Thumbtack app, buyers can anticipate ongoing upkeep expenses to avoid surprises and budget with confidence.
Reconsider the type of home you buy. A large single-family home with a big backyard often comes with higher maintenance costs. Budget-conscious buyers can explore more affordable options, such as townhomes or condos, which may offer less upkeep.
New construction can save later. Sometimes spending more upfront pays off. A new-construction home typically requires less maintenance in the near term, allowing you to enjoy your new space with fewer unexpected repair bills.

“Home maintenance is often one of the most overlooked parts of owning a home when it comes to budgeting for the year,” said Morgan Olsen, Thumbtack home expert. “Think of preventative maintenance as a safety net for your biggest asset. Spending a little each season helps spread out costs and keeps your home prepared for whatever the weather brings.”

How we crunched the numbers

For this analysis, Zillow estimated annual property tax and homeowners insurance costs for a typical U.S. homeowner, then compared year-over-year changes and pre-pandemic benchmarks. Thumbtack added estimates for annual costs of home maintenance, plus preventive weather-related maintenance projects.

Thumbtack’s essential annual costs of home maintenance include: appliance maintenance, carpet cleaning, central air conditioning maintenance, deck staining and sealing, duct and vent cleaning, fireplace and chimney cleaning, full-service lawn care, gutter cleaning and maintenance, heating system maintenance, house cleaning, pressure washing, roof maintenance, sprinkler and irrigation system maintenance, tile and grout cleaning, tree trimming and removal, water heater maintenance and window cleaning.

Pricing data is based on projects requested on Thumbtack and reported directly by the independent service professional or individual customers. The cost is an unweighted index of all yearly home maintenance projects and is calculated on a quarterly basis using a moving average.