One state leads the nation in extra homeownership costs
Hidden costs of homeownership now average more than $21,000 annually in the United States, according to a new report by digital insurance platform Insurify.
The analysis found that expenses beyond mortgage payments—including home and flood insurance, property taxes, utilities, and maintenance—amount to $21,084 a year. That represents 27% of the nation’s median household income of $77,719.
Homeowners in Hawaii face the highest hidden costs, averaging $34,739 annually. California followed at $34,061, with Massachusetts at $33,659 and New Jersey at $30,424.
Florida stood out as the least affordable state. There, hidden costs represented 37% of median household income, the highest proportion in the country.
Nationwide, home maintenance was the single largest contributor to hidden costs. Utilities and property taxes ranked next, followed by insurance. These recurring expenses are often overlooked by buyers when budgeting for a home.
Insurify also highlighted signs of continued cost pressures. The company projects that average home insurance premiums will be 8% higher in 2025 compared with last year. In addition, maintenance and repair costs are likely to rise after a 7% increase in material prices, according to a survey from the National Association of Home Builders (NAHB).
The findings follow an earlier survey conducted by Insurify in June of more than 1,000 Gen Z homeowners. The survey showed that 89% were surprised by the magnitude of homeownership costs beyond mortgage payments.
“First-time homebuyers need to be aware of all costs and factor them into their purchasing decisions,” said report author Matt Brannon of Insurify.
The report, which draws on proprietary data and government statistics, offers state-level comparisons between total annual costs and household incomes.
Recent data underscores the upward trajectory of insurance costs. The national average for annual home insurance premiums reached $2,470 by July 2025, a 9% increase since 2023—driven primarily by intensifying extreme weather events and associated risks in storm-prone regions like Arkansas.
In addition, Bankrate’s 2025 breakdown of hidden homeownership costs assigns $2,267 annually to home insurance, $4,316 to property taxes, $4,494 to utilities and energy, $1,515 to internet and cable, and a notable $8,808 to maintenance.
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