$21,400 Surprise: The Hidden Costs of Owning and Maintaining a Home in 2025
Buying a home is the biggest single cost that most people have ever undertaken. However, many new homeowners are surprised that the costs continue to continue after they have their keys on hand.
According to new hidden costs in Bankrate Home Ownership Research, the average annual cost associated with ownership and maintenance of a typical detached home in the United States will be $21,400 in 2025. We call them “hidden” because it is often overlooked or expected by the homeowner, especially if they have a budget to buy the location. However, these ongoing costs remind us that the true cost of homeownership is far beyond the purchase price of the property and the planned mortgage payments.
Nationally and state-by-state, Bankrate analyzed property taxes, homeowner insurance, utilities, internet and cable invoice prices to determine the average hidden cost of homeownership across the United States. We also calculated the total maintenance and repairs by taking 2% of the state’s detached home prices, a standard measure set by Fannie Mae. All figures were adjusted for inflation using the consumer price index. (Note: Our analysis covers 49 out of 50 states. Data restrictions excluded New York.)
Why are homeownership and maintenance costs so high?
As the homeowners lovingly say, the house has always been a money hole. But if the pit looks deeper than ever, there’s a good reason for that. The cost of homeownership in the US has risen in recent years, supported by inflation, rising interest rates and a highly competitive housing market.
It all starts with the cost of getting the location. As of April 2025, the median home price was $437,942, close to $437,942, according to real estate platform Redfin, which has increased 44% from 2020. Mortgage feesit is five years old. In short, home buyers these days need to borrow more money and borrow more costs.
The Little Wonder of Bankrates 2025 Housing Affordable Research Americans find that they need six-figure annual household income, which is exactly $116,986. Unfortunately, American income does not correspond to the home’s real estate costs. A recent analysis by the housing improvement site FIXR shows that home prices have risen 197% over the past quarter century, with median household incomes only increasing by 40%.
But buying is just the beginning. Wallet squeezes intensify after becoming a homeowner. Higher The value of the house Average property taxes and homeowner insurance contracts (and premiums). And over the past five years, inflation has nurtured ugly heads with rising costs, including construction/home improvement materials, goods, services, labor and more. According to the U.S. Bureau of Labor Statistics, cumulative inflation rate from April 2020 to April 2025 reached 25%. So, an item that costs $100 five years ago is $125.
As a result, consumers are especially struggling in the form of home maintenance costs. This is $8,808 per year in the hidden costs. That’s almost twice the cost of utility/energy ($4,494), twice the cost of property tax ($4,316), four times the cost of home insurance ($2,267), and six times the cost of internet/cable ($1,515).
These costs emerge as the primary source of regret for home buyers. in Bankrate 2025 homeowners regret their investigationalmost half (42%) of homeowners (42%) had at least one concern about buying a home, citing maintenance and other hidden costs were more expensive than expected. The unexpected maintenance and the ongoing financial burden of maintenance and minor repairs were actually the most common regret (among those who have them).
State with the most expensive homeownership
The top five states with the highest hidden costs of homeownership include three western and two eastern states.
The cheapest homeownership states
Three Southerns and two Midwest people make up a list of states with the most expensive hidden homeowners.
Regional Trends: Homeownership and Maintenance Costs by State
Bankrate’s survey shows that the cost of homeownership across the country is widespread, with costs in Hawaii, the most expensive state almost tripling the cost of those in West Virginia.
Naturally, East and West Coast states tend to have the highest hidden costs. Their high housing value (which affects maintenance budgets) and sudden property taxes play an important role in making them extremely expensive.
The 10 best-cost states (California, California, New Jersey, Massachusetts, Washington, New Hampshire, Colorado, Florida and Rhode Island) are one of the most expensive states in the housing maintenance budget and 25 most expensive states in the property tax.
Mild costs are widening in the middle of the country. Southern and Midwest states offer some of the lowest hidden costs thanks to lower home prices, utility bills and property taxes. The lowest-cost states (West Virginia, Mississippi, Indiana, Missouri, Arkansas, Iowa, Michigan, Ohio, Alabama and North Dakota) have lower than average household maintenance budgets and property taxes.
Hidden Costs of Home Ownership: Behind the Numbers
Various interrelated factors lie behind hidden heights Homeownership Costand they reflect some interesting socioeconomic trends.
Naturally, states with the highest home prices tend to cost the most. The cost of living is just the price for these places as a whole. However, particularly increased housing value has a ripple effect, like property taxes. According to the collaboration of real estate data analysts, Fixed Asset Tax For single-family homes, an average increase of 27% between 2019 and 2024. And when they go up, they often go down, even if the home prices are soft.
According to the U.S. Energy Agency, a rise in electricity law is comparable to the rise in property taxes. These increases exceed the general inflation rate, primarily due to rising transmission and distribution costs.
Also surpasses inflation: infamous It rises with hSome owners’ insurance feesan increase of 24% nationwide from 2021 to 2024. Again, some of the increases reflects an increase in home prices. The higher the value of the property, the more expensive it will be to guarantee it, but it will increase. Extreme weather frequency Events and natural disasters also play a major role.
The most expensive homeownership cost is maintenance. These are daily maintenance costs and minor corrections to real estate. As mentioned before, the impact of general inflation on costs was significant. Beyond Bankrate calculations, there is a reason why these costs are rising, and what is likely to continue to increase even further is the country’s aging housing stock. The median age of a home in America is over 40 years old. It is a small wonder that in 2023, average maintenance spending per homeowner homeowner rose by 76%, per homeowner, is pointed out by the Joint Center of Harvard’s Housing Research Center.
“Upkeeping” often leads to an “upgrade” in older homes, as key features and systems need to be replaced. Many people choose given the high home prices today. Please leave itInstead of moving; many older Americans want to age at home too. The previous year’s spending on home renovations and repairs will reach a record $526 billion by the first quarter of 2026, the Joint Center forecasts.
Many of these costs are necessary and non-negotiable, such as property taxes and utilities. Others related to repair and maintenance are essential and important investments in your building Home Equity. But adding all these hidden costs together makes it clear that homeownership in the US today has been a $21,400 annual proposal.
