5 states with the highest hidden homeownership costs — over $23,000 a year in property taxes, insurance, and maintenance

Hawaii

Rapidly rising home prices and high mortgage rates already make buying a house hard enough in today’s market. But consumers should be aware of yet another hurdle to homeownership: rising hidden costs.

Property taxes, homeowners insurance, maintenance, and other expenses add up quickly. In addition to monthly mortgage payments, homeowners across the US should expect to pay an average of $18,118 a year in these hidden costs, according to a June 2024 study conducted by financial services company Bankrate.

That’s a 26% increase since 2020. In some of the most expensive states, homeowners can easily spend over $25,000 on these hidden costs a year.

Hidden costs have risen significantly in the last 4 years

Bankrate calculated hidden homeownership expenses by summing up the average cost of property taxes, homeowners insurance, utilities, and maintenance and repairs. For the median US single-family home, valued at $438,483 according to RedFin, that comes out to an extra $1,510 in housing-related costs each month. And that’s up from $14,428, or $1,202 a month, in 2020.

The increase in hidden homeownership costs is another indicator that the housing market is still reeling from pandemic-induced demand shocks and inflation.

Home prices have gone up in general in the last four years, with the median price of an existing home rising from $280,700 to $393,500 from March 2020 to 2024, according to the National Association of Realtors.

With cumulative inflation totaling 21% from March 2020 to 2024, the price of home repairs, internet, cable, energy, and other bills has also climbed steadily. Rising building material and labor costs, as well as increasing occurrences of natural disasters, are also pushing annual homeowners insurance premiums up.

5 states with the highest hidden homeownership costs

Below are the five states with the highest costs associated with owning a home, their average annual hidden homeownership costs in 2024 and 2020, and the four-year price increase, according to Bankrate’s study

1. Hawaii

A residential area in Hilo, Hawaii.

Average 2024 hidden costs: $29,015

Average 2020 hidden costs: $20,964

Four-year % increase: 38%

2. California

Drone shot of single family homes in the Mid-Wilshire neighborhood of Los Angeles, California.

Average 2024 hidden costs: $28,790

Average 2020 hidden costs: $21,845

Four-year % increase: 32%

3. Massachusetts

New Bedford, Massachusetts. 

Average 2024 hidden costs: $26,313

Average 2020 hidden costs: $20,564

Four-year % increase: 28%

4. New Jersey

Sayreville, New Jersey. 

Average 2024 hidden costs: $25,573

Average 2020 hidden costs: $20,421

Four-year % increase: 25%

5. Connecticut

Halbergman

Average 2024 hidden costs: $23,515

Average 2020 hidden costs: $18,996

Four-year % increase: 24%