Insurify: Hidden Costs Add More Than $21,000 Annually to Homeownership Cost

(Illustration: Ivan Samkov/pexels.com)

Non-mortgage expenses such as home and flood insurance, property taxes, utilities and maintenance add more than $21,000 annually to the total cost of homeownership on average, according to a new report from Insurify, Cambridge, Mass.

Many homebuyers overlook such costs, but they add up to 27% of the median U.S. household annual income ($77,719), the report noted.

By the end of 2025, the average cost of home insurance could be 8% higher than 2024, Insurify said. Maintenance and repair costs will likely rise as well; remodeling professionals reported a 7% increase in material costs, the National Association of Home Builders recently reported.

Insurify Data Journalist Matt Brannon noted that in a June survey, 89% of Gen Z homeowners called themselves surprised by how expensive home insurance, property taxes and other homeownership costs have become. “This new hidden cost data quantifies the financial impact everyday homeownership expenses have on top of monthly mortgage principal and interest payments,” he added. “First-time homebuyers need to be aware of all costs and factor them into their purchasing decisions.”

Other key findings from the report:

Hidden costs as defined by Insurify exceed $30,000 annually in Hawaii ($34,739), California ($34,061), Massachusetts ($33,659) and New Jersey ($30,424).

Home maintenance accounts for the largest portion of hidden costs, followed by utilities and property taxes.

Homeownership costs are the least affordable in Florida, where they represent 37% of the state’s median household income.