Owning a home costs way more than the mortgage. Here's how much.

Great question. You’re absolutely right — the cost of owning a home goes far beyond just the mortgage payment. Here’s a breakdown of how much more, on average, and what those extra costs actually are.

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 How Much More Does Homeownership Really Cost?

• According to Zillow + Thumbtack, the “hidden” costs of owning a home now average about $15,979 per year, or roughly $1,330 per month on top of a mortgage. These include maintenance, insurance, and taxes. (Zillow)

• Bankrate puts the 2025 average at even $21,400/year (for a typical single-family home), including maintenance, utilities, property taxes, insurance, and more. (Bankrate)

• Insurify (insurance comparison site) finds the average non-mortgage cost is about $21,084/year. (Insurify)

• According to Real Estate Witch, that number can be even higher—about $24,529/year in extra costs, nearly matching what many homeowners pay for their mortgage. (Real Estate Witch)

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 What These Costs Include

Here are the major “hidden” or ongoing costs of owning a home (beyond the principal + interest):

Expense Category	Typical Annual Cost / Rate
Maintenance & Repairs	~1%-4% of your home’s value per year. (HomeGuide) Bankrate estimates ~$8,800/year for maintenance alone. (Bankrate)
Property Taxes	Depends on state, but significant: often several thousand dollars/year. (PR Newswire)
Homeowners Insurance	~$150–$270/month per HomeGuide. (HomeGuide) Insurify’s average is ~$3,000+ annually. (Insurify)
Utilities	~$500-$600/month typical in the U.S. for a single-family home, per HomeGuide. (HomeGuide) Real Estate Witch reports ~$7,319/year. (Real Estate Witch)
HOA / Condo Fees (if applicable)	Varies widely. HomeGuide estimates $100–$500/month depending on community. (HomeGuide)
Upgrades / Renovations	Can add up. Real Estate Witch reports average ~$5,762/year for renovations. (Real Estate Witch)

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 Why Many Homeowners Underestimate These Costs

1. Budgeting Mistake: Many buyers focus on the mortgage (principal + interest) and don’t fully plan for ongoing costs.

2. Inflation: Maintenance, materials, and labor costs have been rising, which pushes up upkeep expenses. (Bankrate)

3. Age of Home: Older homes usually require more repairs and maintenance, increasing cost.

4. Geographical Variation: Property taxes, insurance rates, and utility costs vary a lot depending on where you live. Bankrate’s study shows some states’ extra costs go over $30,000/year. (Insurify)

5. Unexpected Repairs: Things like roof replacements, HVAC issues, plumbing, or structural problems can be very costly if not anticipated.

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 Bottom Line

• If you’re thinking of owning a home, don’t just calculate the mortgage — budget for another $15,000–$25,000+ per year (on average) for everything else.

• These additional costs can significantly impact your cash flow and long-term financial health.

• Before buying, it’s a good idea to run a realistic budget that accounts for these hidden costs — not just mortgage payments.

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If you like, I can pull together homeownership cost estimates for your city (or ZIP code) — so you can better forecast what “all-in” costs would look like for you. Do you want me to do that?