Hidden costs of homeownership reach $16K per year

Rhea-AI Summary

Zillow (NYSE: Z) and Thumbtack analysis (Nov. 13, 2025) finds the hidden costs of homeownership average $15,979 per year nationwide — about $1,325 per month above mortgage payments. Costs split as $10,946 maintenance, $3,030 property tax, and $2,003 insurance. Hidden costs rose 4.7% year-over-year while household incomes rose 3.8%. Insurance premiums climbed 48% since Feb 2020, with metro spikes like $4,607 average in Miami (up 72%). Coastal metros show the highest totals (New York $24,381; San Francisco $22,781).

Positive

• Hidden costs average $15,979/year
• Costs composition: $10,946 maintenance, $3,030 taxes, $2,003 insurance
• Hidden costs +4.7% YoY versus incomes +3.8% YoY
• Insurance +48% since Feb 2020

Negative

• $1,325/month added to typical mortgage payment
• Insurance premiums $4,607 average in Miami (up 72% five years)
• Hidden costs exceed $24,000 in New York and $22,781 in San Francisco
• Insurance rising nearly twice as fast as homeowner incomes

Insights

Housing affordability analyst

Rising non-mortgage costs now add about $15,979 per year, pressuring home affordability nationwide.

Zillow and Thumbtack quantify the annual hidden cost burden as $15,979 nationwide, driven by $10,946 in maintenance, $3,030 in property tax and $2,003 in insurance; together these costs rose 4.7% year‑over‑year versus household income growth of 3.8% as of Nov. 13, 2025. The release highlights sharp regional variation, with coastal metros like New York and San Francisco showing totals above $22,000, and extreme insurance spikes in Florida metros (Miami up 72%).

The business mechanism is simple: recurring non‑mortgage expenses materially increase the true monthly cost of homeownership (the report equates the burden to $1,325 per month on top of mortgage payments). Key dependencies and risks are explicit in the data: insurance cost increases (noted at 48% since February 2020 nationally) and higher local property taxes drive regional affordability divergence. Monitor insurance premium trends and local property tax levels over the next 12–24 months, and compare the reported maintenance index and its quarter‑to‑quarter movement for signs of further cost acceleration.

A new Zillow and Thumbtack analysis reveals how rising costs are reshaping the price of owning a home

• Insurance, maintenance and property tax can cost the average homeowner $15,979 per year. 
• Insurance premiums have surged 48% in the past five years, exceeding household income growth. 
• Hidden costs are highest in already expensive coastal metro areas, exceeding $24,000 in New York and $22,000 in San Francisco.   

SEATTLE, Nov. 13, 2025 /PRNewswire/ -- A new analysis from Zillow® and Thumbtack® finds that the hidden costs of homeownership now add up to $15,979 per year nationwide, climbing faster than incomes and straining affordability across the country. That's an additional $1,325 per month on top of a mortgage payment. Here's where the money goes each year for the typical U.S. homeowner:

• $10,946 on maintenance
• $2,003 on homeowner's insurance
• $3,030 on property taxes

Together, those costs have increased 4.7% in the past year, while household incomes rose just 3.8%. The squeeze is sharpest in expensive coastal metros, where hidden costs reach $24,381 in New York City, $22,781 in San Francisco and $21,320 in Boston.

Insurance premiums have risen 48% nationwide since February 2020, topping $2,000 annually on the typical home. However, in Miami, premiums average $4,607 per year, up 72% in the past five years. Other Florida metros have seen similar spikes, including Jacksonville (72%), Tampa (69%) and Orlando (68%). Outside of Florida, insurance costs are up 79% in New Orleans, 59% in Sacramento, 58% in Atlanta and 56% in Riverside, California.

"Insurance costs are rising nearly twice as fast as homeowner incomes," said Kara Ng, Zillow senior economist. "It's not just a budget line item. It's a barrier to entry for aspiring first-time buyers and for families already stretched thin. Buyers who are already facing affordability challenges in today's market need to understand and budget for these less obvious expenses when calculating how much home they can truly afford." 

Here are four tips for prospective buyers:

• Know your true buying power. Start with BuyAbility^SM, a personalized affordability tool available on the Zillow app. It allows you to set a target monthly payment, which can be adjusted to account for these costs. 
• Plan for maintenance costs early. Homeownership doesn't end on closing day. Using Thumbtack's free personalized maintenance guides, available on the Thumbtack app, buyers can anticipate ongoing upkeep expenses to avoid surprises and budget with confidence.
• Reconsider the type of home you buy.  A large single-family home with a big backyard often comes with higher maintenance costs. Budget-conscious buyers can explore more affordable options, such as townhomes or condos, which may offer less upkeep.
• New construction can save later. Sometimes spending more upfront pays off. A new-construction home typically requires less maintenance in the near term, allowing you to enjoy your new space with fewer unexpected repair bills.

"Home maintenance is often one of the most overlooked parts of owning a home when it comes to budgeting for the year," said Morgan Olsen, Thumbtack home expert. "Think of preventative maintenance as a safety net for your biggest asset. Spending a little each season helps spread out costs and keeps your home prepared for whatever the weather brings."

Crunching the numbers

For this analysis, Zillow estimated annual property tax and homeowners insurance costs for a typical U.S. homeowner, then compared year-over-year changes and pre-pandemic benchmarks. Thumbtack added estimates for annual costs of home maintenance, plus preventive weather-related maintenance projects. 

Thumbtack's essential annual costs of home maintenance include: appliance maintenance, carpet cleaning, central air conditioning maintenance, deck staining and sealing, duct and vent cleaning, fireplace and chimney cleaning, full-service lawn care, gutter cleaning and maintenance, heating system maintenance, house cleaning, pressure washing, roof maintenance, sprinkler and irrigation system maintenance, tile and grout cleaning, tree trimming and removal, water heater maintenance and window cleaning.

Pricing data is based on projects requested on Thumbtack and reported directly by the independent service professional or individual customers. The cost is an unweighted index of all yearly home maintenance projects and is calculated on a quarterly basis using a moving average.

Metro	Total hidden costs of homeownership	Estimated property tax	Estimated insurance	Average cost of maintenance
United States	$15,979	$3,030	$2,003	$10,946
New York, NY	$24,381	$10,838	$1,967	$11,576
Los Angeles, CA	$19,321	$6,317	$1,992	$11,012
Chicago, IL	$17,375	$5,327	$1,794	$10,254
Dallas, TX	$16,569	$4,701	$2,648	$9,220
Houston, TX	$15,658	$2,883	$2,998	$9,777
Washington, DC	$17,688	$5,302	$1,708	$10,678
Philadelphia, PA	$17,711	$4,903	$1,700	$11,108
Miami, FL	$19,959	$5,091	$4,607	$10,261
Atlanta, GA	$17,549	$3,504	$2,167	$11,878
Boston, MA	$21,320	$7,004	$2,245	$12,071
Phoenix, AZ	$13,419	$1,539	$1,552	$10,3282
San Francisco, CA	$22,781	$8,807	$2,289	$11,685
Detroit, MI	$15,564	$2,988	$1,569	$11,007
Seattle, WA	$21,175	$6,490	$1,829	$12,856
Minneapolis, MN	$18,257	$4,380	$2,198	$11,679
San Diego, CA	$19,088	$5,892	$2,069	$11,127
Tampa, FL	$16,934	$3,359	$3,108	$10,467
Denver, CO	$16,266	$3,130	$2,673	$10,463
Baltimore, MD	$16,234	$3,569	$1,724	$10,941
St. Louis, MO	$15,290	$2,914	$2,184	$10,192
Orlando, FL	$16,276	$3,542	$2,871	$9,863
Charlotte, NC	$14,751	$2,508	$1,701	$10,542
Portland, OR	$18,286	$5,095	$1,566	$11,625
Sacramento, CA	$17,653	$4,649	$1,983	$11,021
Pittsburgh, PA	$15,002	$3,110	$1,295	$10,597
Indianapolis, IN	$15,009	$2,596	$1,693	$10,720
Cleveland, OH	$15,934	$3,288	$1,425	$11,221
Nashville, TN	$14,252	$1,828	$1,774	$10,650
Raleigh, NC	$16,270	$3,447	$1,809	$11,014
Salt Lake City, UT	$14,506	$2,899	$1,528	$10,079

About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate app and website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated real estate professionals, and easier buying, selling, financing, and renting experiences. 

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce®, and Follow Up Boss®. 

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2025 MFTB Holdco, Inc., a Zillow affiliate.  (ZFIN)

About Thumbtack
We're Thumbtack , a technology company helping millions of people confidently care for and improve their homes. Our homeowners get personalized guidance on what to do and when to do it as well as who to hire from our growing community of 300,000 local service businesses. Every day in every county of the U.S., people turn to Thumbtack to complete small fixes, routine maintenance, and major improvements. With over 13 million 5-star projects and counting, we empower homeowners to take control and local businesses to grow. Accomplish more with Thumbtack.

 

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SOURCE Zillow Group, Inc.

FAQ

What did Zillow and Thumbtack report about hidden homeownership costs on Nov 13, 2025 for Z?

They reported the typical U.S. homeowner faces $15,979/year in hidden costs, or about $1,325/month above mortgage payments.

How are hidden costs of homeownership broken down in Zillow/Thumbtack's Nov 13, 2025 analysis for Z?

The analysis lists $10,946 maintenance, $3,030 property tax, and $2,003 insurance per year for the typical home.

How fast have insurance premiums grown according to the Zillow/Thumbtack Nov 13, 2025 report on Z?

Insurance premiums rose 48% nationwide since February 2020, with Miami up 72% over five years.

Which U.S. metros have the highest hidden homeownership costs in the Nov 13, 2025 Zillow/Thumbtack data for Z?

The highest totals are New York $24,381, San Francisco $22,781, and Boston $21,320 per year.

How did hidden costs change year-over-year in the Zillow/Thumbtack Nov 13, 2025 release for Z?

Hidden costs increased 4.7% year-over-year while household incomes rose 3.8% year-over-year.