Hidden Costs of Homeownership Come in at $21,084 — on Top of a Mortgage | Insurify

Affording a home is one thing. Affording to keep it running is another. The average homeowner spends $21,084 per year on non-mortgage expenses, including insurance, property taxes, and other costs, according to an Insurify analysis of government and industry data. These costs, which many homebuyers overlook until after closing, add up to 27% of what the median U.S. household earns in a year ($77,719).

In a typical year, the average homeowner spends:

$7,383 on maintenance/upkeep$5,465 on utilities$4,300 on property taxes$3,017 on home insurance$919 on flood insurance

Some of these costs are likely to climb. Insurify projects that by the end of 2025, the average cost of home insurance could be 8% higher than it was at the end of 2024, fueled by an escalating frequency of extreme weather.

The cost of home maintenance, which is the largest individual expense according to Insurify's data, could grow even more due to the macroeconomic impacts of tariffs and inflation. A National Association of Home Builders survey found remodeling professionals reported their material suppliers increased prices by an average of 7% due to the anticipated effect of tariffs.

The hidden costs of homeownership vary from state to state, with homeowners in Hawaii ($34,739) paying nearly triple what those in West Virginia ($12,373) pay.

Florida is the least affordable state when accounting for the median household income. There, homeowners pay about $27,132 in homeownership costs annually, which is 37% of the state's typical household income ($73,311).

Insurify's analysis shows how everyday homeownership expenses can rival the cost of a mortgage and why homebuyers risk financial hardship if they don't budget for hidden costs before closing.

Key findings

Excluding mortgage principal and interest, the average cost of owning a home is $21,084 each year. The largest share of those costs is home maintenance ($7,383), followed by utilities ($5,465) and property taxes ($4,300).Americans with home and flood insurance pay an average of $3,936 for annual coverage — $3,017 for home and $919 for flood. Florida homeowners pay more than double the national average for those policies ($9,376).In 18 states, the hidden cost of homeownership is more than $20,000 per year. In four states, it exceeds $30,000: Hawaii ($34,739), California ($34,061), Massachusetts ($33,659), and New Jersey ($30,424).West Virginia has the lowest homeownership costs in the U.S., at $12,373 annually, roughly half the national average and about one-third of California's annual total.Florida has the least affordable homeownership costs. Non-mortgage costs take up 37% of the state's median household income, followed by Hawaii (36%) and California (36%).North Dakota has the most affordable homeownership costs, at 21% of median household income, just ahead of Utah, Indiana, and Virginia (all 22%).

Hidden homeownership costs exceed $30,000 in some states

Homeowners often overlook hidden costs like maintenance, utilities, property taxes, home insurance, and flood insurance, but these expenses are susceptible to sudden price increases — unlike fixed-rate mortgage payments. A recent Insurify survey found 89% of young homeowners were surprised by how expensive certain costs were, including property taxes (40%) and home insurance (35%).

On average, maintenance costs are the most expensive for homeowners since they include regular maintenance and emergency repairs. Some homeowners may also find themselves regularly paying for pest control, lawn care, pool upkeep, or snow removal.

Irregular expenses, like a new roof or HVAC system, can also stretch budgets thin. Homeowners on Reddit cite a range of unfortunate surprises, from HOA powerwashing mandates to bats taking up residence in the house.1

Insurify's analysis shows home insurance costs rose 8% nationally in 2024, nearly triple the rate of inflation (2.9%).2 Property taxes for single-family homes also jumped 6% from 2023 to 2024, with Louisiana seeing property taxes soar 18%, according to ATTOM, a real estate data firm.3

The table below shows the average annual price of hidden homeownership costs (home insurance, property taxes, maintenance, utilities, and flood insurance) in each state.

10 states with the least affordable homeownership costs, based on income

Hidden homeownership costs vary by state, from as low $12,000 to as high as $34,000. But just because a state has a higher total cost doesn't mean it's unaffordable, as higher household incomes can offset some of the burden. For example, Virginia and Montana both pay roughly $19,600 in hidden costs, but in Montana, those costs account for 28% of the typical household income, while in Virginia, they're equivalent to only 22% of the typical household income.4

In some states, the gap between incomes and hidden costs is especially wide, making non-mortgage costs significantly less affordable.

1. Florida

Share of typical household income required to cover costs: 37%Average annual homeownership costs: $27,132Typical annual household income: $73,311Average annual home insurance cost: $8,491

Florida ranks last for homeownership affordability, with average hidden costs accounting for 37% of the state's median household income ($73,311). Florida households earn about $4,000 less than the median American household, but residents pay about $6,000 over the national average in homeownership costs.

Florida is also the most expensive state for home insurance, with an average annual cost of $8,491, due in part to the state's high risk of extreme weather. This is based on the state's average dwelling coverage of $400,000, a $1,000 deductible, and a separate 5% hurricane and wind deductible.

In Miami, the hidden cost of homeownership is as high as $43,014, including $17,698 for home insurance coverage and $7,770 in property taxes.

2. Hawaii

Share of typical household income required to cover costs: 36%Average annual homeownership costs: $34,739Typical annual household income: $95,322Average annual home insurance cost: $2,578

Homeowners in Hawaii pay the most for utilities and maintenance. Hawaiian homeowners spend nearly double the national average on utilities ($10,603 vs. $5,465), despite consuming less energy than others in most states. This is because each island has its own electrical grid, with most generating electricity through imported oil, which is expensive compared to other energy sources.5

Additionally, estimated maintenance costs are the highest for Hawaii homeowners, at $16,680 annually.

But insurance is a different story, as Hawaii residents pay an average of $2,578 for home insurance and $770 for flood insurance each year — both lower than the national average.

3. California

Share of typical household income required to cover costs: 36%Average annual homeownership costs: $34,061Typical annual household income: $95,521Average annual home insurance cost: $2,384

California homeowners pay above the national average for maintenance, property taxes, flood insurance, and utility costs. The estimated annual household maintenance spending, based on 2% of the typical home value, adds up to $15,722 — the second-highest rate of any state. California homeowners also pay the sixth-highest property taxes ($7,127) and seventh-highest utility costs ($7,876).

One bright spot for the state is lower-than-average home insurance costs ($2,384). But those costs are on the rise, as insurers respond to heightened wildfire risks.

In Los Angeles, where the typical home value is $970,592, hidden homeowner costs reach $40,052, including an estimated $19,412 on maintenance.

4. New York

Share of typical household income required to cover costs: 35%Average annual homeownership costs: $28,637Typical annual household income: $82,095Average annual home insurance cost: $1,985

Affording day-to-day homeownership costs is a bigger burden in New York than in most states. The average annual cost of property taxes in the state is $7,821, nearly double the national average ($4,300).

Fortunately, home insurance costs in the state are about $1,000 cheaper for the typical New York home ($1,985) compared to the U.S. average of $3,017.

In New York City, the hidden cost of homeownership is $38,455, including $16,179 in estimated maintenance costs and $11,294 in property taxes.

5. Massachusetts

Share of typical household income required to cover costs: 34%Average annual homeownership costs: $33,659Typical annual household income: $99,858Average annual home insurance cost: $2,139

Massachusetts is one of the most difficult states for managing homeownership costs. It ranks in the top five nationally for the most expensive maintenance costs, utility costs, and property taxes. Although it has the highest median household income of any state ($99,858), homeowners may allocate more than a third of that income toward homeownership costs (34%).

On the bright side, homeowners in Massachusetts pay about $900 less for home insurance than the national average each year ($2,139 vs. $3,017).

In Boston, hidden homeownership costs total $38,745, including an average annual property tax bill of $9,413.

6. Rhode Island

Share of typical household income required to cover costs: 33%Average annual homeownership costs: $27,877Typical annual household income: $84,972Average annual home insurance cost: $2,616

Rhode Island residents, like others in New England, pay some of the highest homeownership costs in the country. Homeowners pay an average of $8,092 in annual utility costs — about 50% above the national average — driven in part by a reliance on imported fuels.6 Rhode Island also has the sixth-highest property taxes of any state, averaging $6,200 annually.

In Providence, the hidden cost of homeownership is slightly lower than the statewide average, at $26,343, largely due to lower average home values.

7. Connecticut

Share of typical household income required to cover costs: 33%Average annual homeownership costs: $29,777Typical annual household income: $91,665Average annual home insurance cost: $2,489

Connecticut households earn 18% more than the median U.S. household but pay 41% more in homeownership costs. The typical property tax bill is $8,690 — the second-highest in the country and double the national average ($4,300). Connecticut also has the third most expensive flood insurance ($1,426) and the fourth most expensive utility costs ($8,452).

Unlike in most states, Connecticut's biggest city, Hartford, has lower average homeownership costs ($23,740) than the state as a whole. Hartford has lower average property values, which often means cheaper property taxes, maintenance costs, and insurance premiums.

8. Maine

Share of typical household income required to cover costs: 32%Average annual homeownership costs: $23,426Typical annual household income: $73,733Average annual home insurance cost: $1,521

Maine benefits from low home insurance costs, about half the national average, but suffers from high costs in other aspects. Residents of the Pine Tree State pay the sixth-highest utility costs nationwide, at $7,959 per year, and the seventh-highest flood insurance costs, at $1,284 annually.

Although the state is relatively insulated from most natural disasters, storm-related flooding remains a threat. In December 2023, heavy rains caused flooding across multiple states, including Maine, and resulted in roughly $1.3 billion in damage.7

In Portland, the hidden cost of homeownership is about $5,000 higher, at $28,469. The city's higher home values contribute to residents paying more in property taxes, maintenance costs, and home insurance premiums.

9. New Jersey

Share of typical household income required to cover costs: 30%Average annual homeownership costs: $30,424Typical annual household income: $99,781Average annual home insurance cost: $1,457

New Jersey households have the second-highest median income in the country, but they allocate about 30% of it toward non-mortgage homeownership costs. At $10,134 each year, New Jersey has the highest average property tax bill for homeowners. That is 136% higher than the national average ($4,300). On the plus side, Garden State households pay about half of the typical annual cost for home insurance ($1,457 vs. $3,017).

10. Vermont

Share of typical household income required to cover costs: 30%Average annual homeownership costs: $24,424Typical annual household income: $81,211Average annual home insurance cost: $993

Vermont households spend more than $24,000 annually on hidden homeownership costs. The state ranks among the top 10 nationally for most costly property taxes ($6,994) and utility expenses ($6,756).

Homeowners in Vermont also pay the nation's second-highest flood insurance costs ($1,612) due to the state's higher flood risk. In July 2023, storms brought up to 8 inches of rain to the region, causing flooding that damaged thousands of homes in the state capital of Montpelier.8

Apart from flooding, the state sees a relatively low number of severe weather events. That explains why Vermont homeowners pay the lowest home insurance premiums of any state, averaging $993 per year.

10 states with the most affordable homeownership costs, based on income

High homeownership costs are less of a burden in certain areas. Simply crossing a state line can significantly change what people pay in non-mortgage expenses. Delaware homeowners, for example, spend $18,297 on hidden homeownership costs, while homeowners in neighboring New Jersey spend $30,424 annually.

1. North Dakota

Share of typical household income required to cover costs: 21%Average annual homeownership costs: $15,883Typical annual household income: $76,525Average annual home insurance cost: $2,348

North Dakota is the most affordable state for non-mortgage homeownership costs. Homeowners pay below the national average for maintenance, utilities, property taxes, home insurance, and flood insurance. In North Dakota, homeowners spend 25% less on utilities than the national average ($4,085 vs. $5,465), due in part to relatively cheap electricity prices.9

Ice storms and extreme cold can contribute to maintenance costs, but home insurance premiums don't reflect those risks as much. The typical North Dakota homeowner pays $2,348 annually for home insurance, nearly $700 under the U.S. average.

2. Utah

Share of typical household income required to cover costs: 22%Average annual homeownership costs: $20,247Typical annual household income: $93,421Average annual home insurance cost: $1,647

Utah households earn about $16,000 more than the typical American household and still pay less than the national average toward hidden homeownership costs. One contributing factor is a lack of extreme weather and natural disasters, which keeps insurance costs low. Utahns pay about half the national average for home insurance ($1,647 vs. $3,017), and they pay the third-lowest flood insurance costs of any state ($662).

Utah also has some of the country's lowest electricity rates. As a result, homeowners pay about 26% under the national average in annual utility costs ($4,041 vs. $5,465).

In Salt Lake City, hidden homeownership costs average $21,810 annually, with higher home values causing slightly higher maintenance and insurance costs compared to the state as a whole.

3. Indiana

Share of typical household income required to cover costs: 22%Average annual homeownership costs: $15,130Typical annual household income: $69,477Average annual home insurance cost: $1,811

Indiana's homeowners pay about $5,000 less in hidden homeownership costs compared to the typical U.S. household. Cheap home values in the state contribute to lower property taxes, maintenance, and insurance costs. The average annual property tax bill in Indiana is about $1,800 less expensive than the national average ($2,485 vs. $4,300). Home insurance costs fall about $1,200 below the national average ($1,811 vs. $3,017) as well.

In Indianapolis, hidden homeownership costs are a little higher, at $15,317 annually, with pricier property taxes playing a role ($3,357).

4. Virginia

Share of typical household income required to cover costs: 22%Average annual homeownership costs: $19,669Typical annual household income: $89,931Average annual home insurance cost: $1,826

Virginia households make more income and pay less in hidden homeownership costs than most. The annual cost of home insurance in Virginia is $1,826, far under the national average ($3,017). Residents also pay the fifth-cheapest flood insurance premiums in the country, at an average of $734 each year.

Although Virginia isn't as vulnerable to hurricanes as Gulf Coast states, flood insurance is still an important safeguard. Hurricane Helene affected hundreds of Virginia homes in 2024, with less than 5% covered by flood insurance, according to a preliminary damage report.10

Home insurance costs are higher in Virginia Beach, just above the national average ($3,053). Hidden homeownership costs are slightly higher in the city, at $20,427 annually.

5. West Virginia

Share of typical household income required to cover costs: 22%Average annual homeownership costs: $12,373Typical annual household income: $55,948Average annual home insurance cost: $1,387

Hidden homeownership costs in West Virginia are the cheapest of any state. Homeowners pay a staggering 41% less than the national average each year in non-mortgage costs ($12,373 vs. $21,084). In terms of specific expenses, West Virginia homeowners pay the lowest property taxes ($1,027) and maintenance costs ($3,399) in the country.

Although West Virginia's hidden costs are low, a few other states still have less difficulty affording home upkeep thanks to higher incomes. The median household income in West Virginia is the second lowest, at $55,948, ahead of Mississippi. West Virginia also has the highest flood insurance costs in the country, at $1,628. For comparison, Wisconsin has roughly the same number of flood insurance policies, but people there pay around half of that cost on average ($917).

6. Iowa

Share of typical household income required to cover costs: 22%Average annual homeownership costs: $15,972Typical annual household income: $71,433Average annual home insurance cost: $2,030

Iowa has some of the lowest home values in the U.S., which contributes to less burdensome homeowner costs. Iowa homeowners have estimated maintenance expenses of $4,656, the seventh-lowest figure in the country. Property taxes for single-family homes in the state come in at $3,196, well below the national average ($4,300).

Iowa homeowners pay lower annual home insurance costs, at $2,030, but they do face some extreme weather risks, particularly from flooding, which explains why the state pays about $300 over the national average for flood insurance ($1,262 vs. $919).

7. Maryland

Share of typical household income required to cover costs: 22%Average annual homeownership costs: $22,128Typical annual household income: $98,678Average annual home insurance cost: $2,237

Maryland homeowners spend about $1,000 more on non-mortgage costs than the typical U.S. household ($22,128 vs. $21,084). But the median household income in Maryland is among the highest in the nation, so the proportion of income homeowners spend on these costs is still lower than in other states.

Maryland has below-average homeownership costs ($2,237) and the nation's second-cheapest flood insurance costs ($487). That makes homeownership relatively affordable — even if the state does have the highest car insurance premiums in the country.

In Baltimore, the typical home value is lower than the state average, which contributes to lower non-mortgage costs, at $15,822. That includes cheaper home insurance ($1,267), property taxes ($3,996), and maintenance expenses ($3,815).

8. Delaware

Share of typical household income required to cover costs: 22%Average annual homeownership costs: $18,297Typical annual household income: $81,361Average annual home insurance cost: $1,482

Delaware spends less on hidden home costs than most of its mid-Atlantic neighbors, thanks to lower home insurance costs. Delaware residents pay an average of $1,482 annually for home insurance, which is 51% below the national average ($3,017).

The typical property tax bill for a single-family home in Delaware is $2,081 — well below the national average ($4,300). New state legislation that allows for more frequent tax assessments could soon mean higher tax bills for Delaware homeowners, however.11

9. Alaska

Share of typical household income required to cover costs: 23%Average annual homeownership costs: $19,712Typical annual household income: $86,631Average annual home insurance cost: $1,377

Alaska is one of the more affordable states for homeownership, due in part to higher median incomes and lower insurance costs. The average annual cost of home insurance is $1,377 — 54% below the national average ($3,017). Alaska also has the cheapest flood insurance costs in the country, averaging $433 per year.

Homeownership in Anchorage is slightly pricer than the state overall, with non-mortgage costs of $20,174 each year. That's partly because the city's average property tax bill is about $500 higher than the state average ($4,676 vs. $4,151).

10. Minnesota

Share of typical household income required to cover costs: 23%Average annual homeownership costs: $19,720Typical annual household income: $85,086Average annual home insurance cost: $2,560

Minnesota ranks 10th for affordable homeownership costs, benefiting from below-average costs for home insurance, maintenance, utilities, and property taxes. Although Minnesota faces some severe weather risks, the average annual cost of home insurance is $2,560, about $400 below the U.S. average ($3,017).

However, flood insurance rates in the state are relatively high, at $1,066 annually. Rainstorms pouring more than 3 inches are up 65% since 2000, according to the Minnesota Department of Natural Resources.12

Tips for managing hidden homeownership costs

Homeownership can be pricey. And while some costs are inevitable, smart homeowners can still take steps to save.

Compare home insurance policies at renewal. One of the easiest tactics is comparing home insurance quotes from different companies. Homeowners often default to their current insurer upon renewal, but reviewing policies from other insurers can help some people find a better deal.Stay on top of home maintenance costs. Homeowners should conduct seasonal inspections and tackle small repairs before they cause additional problems. To save on utilities, residents should ensure their homes are well-insulated and use energy-efficient appliances when possible.Buy flood insurance, even if you're not in a high-risk area. Many homeowners gamble by not purchasing flood insurance. About 40% of flood insurance claims occur outside high-risk areas, according to the Federal Emergency Management Agency.13 Just 1 inch of floodwater can cause up to $25,000 in property damage. Homeowners interested in buying flood insurance from FEMA's National Flood Insurance Program should be mindful of the 30-day waiting period for claims on new policies.14

Methodology

Insurify data scientists turned to their real-time database of insurance quotes from partner carriers, as well as aggregated rate filings from Quadrant Information Services, to determine average home insurance costs. Unless otherwise stated, home insurance rates in this report represent the average annual cost of an HO-3 insurance policy for homeowners with good credit and zero claims within the past five years, covering a single-family frame house with the following coverage limits: $200,000 to $750,000 dwelling coverage depending on the locality's typical home value, $25,000 personal property, $30,000 loss of use, $300,000 liability, and a $1,000 deductible. Certain states also include a 2% hail deductible and/or a 5% wind/hurricane deductible.

Insurify gathered Quadrant rates in every county in the United States. Statewide costs reflect the average rate for homeowners across all counties, weighted by population.

Average property tax rates for single-family homes come from ATTOM, a real estate data firm, using the most recent available data as of July 2025. Annual maintenance and repair costs are based on a 2% estimate of the home's value, in line with industry recommendations of budgeting 1% to 4%.15

Utility costs use a baseline U.S. average of $5,465 for homeowners, according to the Bureau of Labor Statistics. Factors include electric, natural gas, fuels, telephone, water, and other public services. Utility costs were then adjusted by state and city based on regional price parities for utility services, according to the Bureau of Economic Analysis.16

Average flood insurance costs for cities and states come from the NFIP's Policy Information by State and Community dataset, which includes premiums for both residential and commercial properties.17

Typical household incomes for cities and states are based on 2023 medians from the Census Bureau's American Community Survey.4

The District of Columbia was excluded due to a lack of data across some categories.

For media inquiries or questions about our study, please contact the author here.