Homeowners Pay Nearly $15,000 a Year In Hidden Costs, New Report Finds

Here's what to know about calculating additional expenses like insurance, taxes, and maintenance projects.

<p>Ridofranz / Getty Images</p>

Ridofranz / Getty Images

Despite rising costs and higher mortgage rates, people are still in the market to find a place to call their home. According to the Zillow Consumer Housing Trends Report (CHTR), in 2022, 45% of those shopping for a house were first-time homebuyers. Unfortunately, many only factor in the mortgage payment in their budgeting when deciding what they can afford in monthly expenses—forgetting about insurance, property taxes, and more. And these extra costs are higher than ever.

Related: Should You Buy a House in 2023?

Now, Zillow has a monthly payment filter tool to help homeowners understand how much these additional dues, including maintenance expenses, will impact their budgets. Using a list created by Thumbtack, a home improvement service, of 17 items that need to be checked and maintained on a consistent basis, Zillow can calculate the real cost of homeownership. So while the average buyer expects to spend 33% of their monthly income on their mortgage, insurance, and taxes, those other numbers for maintenance and repair can really add up: averaging an extra $14,155 per year nationally—which comes out to $1,180 monthly.

"Just like you would visit a mechanic for regular tune-ups to help keep your car in good condition and avoid big bills, your home needs the same routine maintenance to ensure that everything is running smoothly," said David Steckel, Thumbtack's home expert, in a statement. "Staying on top of annual home maintenance will not only increase the value of your home, but will also help prevent emergency repairs that can wreck a homeowner's budget."

These 17 additional expenses include:

  • Appliance repair/maintenance

  • Carpet cleaning

  • Central AC repair/maintenance

  • Deck staining and sealing

  • Duct and vent cleaning

  • Fireplace and chimney cleaning/repair

  • Full-service lawn care

  • Gutter cleaning and maintenance

  • Heating system repair/maintenance

  • House cleaning

  • Pressure washing

  • Roof repair or maintenance

  • Sprinkler system repair/maintenance

  • Tile and grout cleaning

  • Tree trimming and removal

  • Water heater repair/maintenance

  • Window cleaning

Overall, homeowners in San Francisco, New York, and Los Angeles pay the most in hidden costs at over $22,000 annually. Los Angeles and Chicago homeowners can expect to spend the most on maintenance projects each year, totaling $8,639 and $7,722, respectively. Meanwhile, homeowners in Las Vegas can expect to pay the least amount in just $3,467 per year.

Related: The Features that Make an Area Ideal for First-Time Home Buyers

For some first-time homebuyers, looking into options other than a single-family home may be a good idea to cut down on these additional expenses. Condominiums, modular homes, and duplexes all offer opportunities to reduce or share the more significant expenses, such as roof repairs and tree and lawn maintenance. While there's usually an homeowner's association or other homeowner's fee to cover these costs, the payment is generally less per household since the costs are shared.

Homeownership is, for many, the American dream. Just be sure you understand the complete financial picture before taking the leap into mortgages, remodeling, and the other financial obligations of reaching this goal so you avoid the nightmare of unexpected financial obligations once you've found a home you love. 

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