Hidden Costs of Homeownership Average $21,400 Annually, Bankrate Reports
(Chart courtesy of Bankrate. Inset photo courtesy of pexels/Rich Howard)
The average annual hidden costs associated with homeownership for a single-family home in the United States total $21,400, a new study from Bankrate found.
Bankrate’s Hidden Costs of Homeownership Study found a wide range in homeownership costs across the country: expenses in the most expensive state, Hawaii, were nearly triple those in West Virginia. The report analyzed the average annual expenses associated with owning and maintaining a single-family home in 49 of 50 states in 2025 (New York was excluded from the study because its data sources did not calculate average property taxes). Bankrate defined these expenses as costs beyond a mortgage, including property taxes, homeowner’s insurance, utility and energy costs, internet and cable bills and home maintenance budgets.
“A lot of people budget for their monthly mortgage payments when they buy a home but forget to factor in the hidden costs that come with homeownership,” Bankrate’s Linda Bell said. “Things like routine maintenance, property taxes and utility bills can add up quickly, often to the tune of thousands of dollars a year. That can put serious pressure on household budgets, especially for first-time buyers who may not be prepared for the full impact on their finances.”
The national hidden cost of homeownership broken down includes $2,267 for home insurance, $4,316 for property taxes, $4,494 for national utility and energy costs, $1,515 for national internet and cable costs and $8,808 for the average national home maintenance budget.
Homeowners living in the Midwest and South may pay less in hidden costs than homeowners in the West or East, as the top five states with the lowest hidden costs of homeownership are all in the Midwest or the South, while the top five states with the highest hidden costs of homeownership are all in the East and the West.
The top five states with the highest hidden costs of homeownership include: Hawaii ($34,573/year), California ($32,262/year), New Jersey ($29,751/year), Massachusetts ($29,277/year) and Washington ($27,444/year). The next states are: Connecticut ($27,170), New Hampshire ($25,870), Colorado ($25,766), Florida ($24,713) and Rhode Island ($23,885).
On the other hand, states with the lowest hidden costs of homeownership include Iowa ($15,737), Michigan ($16,045), Ohio ($16,259), Alabama ($16,365) and North Dakota ($16,389).
