Key insights

  • The average annual cost of owning and maintaining a single-family home in the U.S is more than $21,000 a year, according to a new Bankrate study.
  • Hawaii and California top the list of states with the highest homeownership costs (over $30,000 annually); West Virginia and Mississippi are the lowest, at less than $15,000 a year.
  • East and West Coast homeowners tend to pay more in hidden costs than those in the South and Midwest.
  • Home maintenance alone averages more than $8,800 a year, ing for the largest chunk of hidden homeownership costs.

The $21,400 surprise: Hidden costs of owning and maintaining a home in 2025

Buying a home is the biggest single expense most people will ever undertake. But many new homeowners are surprised to find that, after they have the keys in hand, the costs just keep on coming – and they’re adding up to a considerable sum. 

The average annual costs associated with owning and maintaining a typical single-family home in the U.S. amount to $21,400 in 2025, according to Bankrate’s new Hidden Costs of Homeownership Study. We call them “hidden” because they’re often overlooked or unforeseen by homeowners, especially when they’re budgeting to buy a place. But these ongoing expenses are a reminder that the true cost of homeownership goes well beyond the property’s purchase price and the scheduled mortgage payments. 

To determine the average hidden homeownership costs across the U.S., both nationally and by state, Bankrate analyzed prices for property taxes, homeowners insurance, utilities, internet and cable bills. We also calculated a sum for maintenance and repairs, by taking 2 percent of each state’s median single-family home price, a standard measure set by Fannie Mae. All figures were adjusted for inflation using the Consumer Price Index. (Note: Our analysis covers 49 of the 50 states: New York was excluded due to data limitations.)

Why are homeownership and maintenance costs so high?

Houses have always been something of a money pit, as homeowners affectionately say. But if that pit seems deeper than ever, it’s with good reason. The cost of homeownership in the U.S. has climbed in recent years, fueled by inflation, rising interest rates and a highly competitive housing market. 

It all begins with the cost of acquiring a place. As of April 2025, the median home price stood at a near-record $437,942, according to real estate platform Redfin, up 44 percent from 2020. There’s also the sting of higher mortgage rates, which are double what they were five years ago. In short, these days homebuyers need to borrow more money, and borrowing costs significantly more. 

Small wonder that Bankrate’s 2025 Housing Affordability Study found that Americans need a six-figure annual household income – of $116,986, to be precise – to comfortably afford a home today. Unfortunately, American incomes aren’t keeping pace with residential real estate costs. A recent analysis by home improvement site Fixr found that, over the last quarter-century, housing prices have increased 197 percent, while the median household income has only increased by 40 percent. 

But buying is just the beginning: The squeeze on wallets intensifies after one becomes a homeowner. Higher home values mean bigger property taxes and homeowners insurance policies (and s). And in the last five years, inflation has also been rearing its ugly head in the rising cost of everything, including construction/home improvement materials, goods and services – and labor. From April 2020 to April 2025, the cumulative inflation rate amounted to 25 percent, according to the U.S. Bureau of Labor Statistics, which means an item that cost $100 five years ago costs $125 now.

That’s why consumers are particularly feeling the pain in the form of home maintenance costs – the highest of our hidden expenses at $8,808 a year. That’s almost two times the cost of utilities/energy ($4,494), double the cost of property taxes ($4,316), four times the cost of home insurance ($2,267) and six times the cost of internet/cable ($1,515).

These expenses have emerged as a major source of homebuyer remorse. In Bankrate’s 2025 Homeowner Regrets Survey, nearly half of homeowners (42 percent) who had at least one misgiving about buying their home cited maintenance and other hidden costs as being more expensive than expected. The unforeseen upkeep and the ongoing financial burden of maintenance and minor repairs was, in fact, the single most common regret (among those who had them).

States with the most expensive homeownership costs

The top five states with the highest hidden costs of homeownership include three Western states and two Eastern states.

  • 1. Hawaii – $34,573/year
    Hawaii is rich not just in paradise views, but in maintenance and energy bills too. Not only are the average hidden costs of homeownership more than $13,000 higher than the national average, but Hawaii is also the most expensive state in annual home maintenance budgets, averaging $19,642. Annual energy and utility costs also average $7,871, nearly $1,700 more than any other state.
  • 2. California – $32,262/year
    Owning a home in the Golden State comes at a golden price. California s Hawaii as the only state with annual hidden homeownership costs in excess of $30,000 a year. Californians spend $17,338 a year on maintenance costs. Property taxes don’t offer much relief either: California is the fifth most expensive state in the U.S. in this category, with an average bill of $7,378 annually.
  • 3. New Jersey – $29,751/year
    New Jersey homeowners spend just shy of $30,000 on annual homeownership costs – half of which is due to their property taxes, the highest in the nation. Property taxes average $10,485 annually, more than double the national average of $4,316. New Jersey is also the fourth most expensive state in energy and utility costs, which total $5,885 annually.
  • 4. Massachusetts – $29,277/year
    Following not too far behind New Jersey is Massachusetts. The Bay State is one of the priciest places to own a home, due largely to it having the fourth-highest property taxes in the country at $7,987 per year. The state also ranks fifth in the U.S. for both home maintenance spending ($12,284) and energy and utility costs ($5,661).
  • 5. Washington – $27,444/year
    Homeowners in the Evergreen State need plenty of green to cover their hidden costs of homeownership, which is fueled by the third-highest home maintenance costs in the country, averaging $13,166 annually. Washington is also the fourth most expensive state in annual internet and cable costs, averaging $1,726.

States with the least expensive homeownership costs

Three Southerners and two Midwesterners comprise the list of the states with the least-expensive hidden homeownership costs.

  • 1. West Virginia – $12,579/year
    Hidden costs aren’t steep for homeowners in the Mountain State: In fact, West Virginia is as affordable as it gets with hidden costs amounting to less than $13,000. Two categories stand out in particular: Property taxes are the cheapest in the country at $1,063 a year, and homeowners insurance isn’t far behind, ranking fourth-lowest at $1,009 annually.
  • 2. Mississippi – $14,810/year
    The second of three Southern states on the least-expensive list, Mississippi also ranks low across the board. Energy and utility bills are the second lowest nationwide at $3,302 a year, while property taxes average just $1,490, the fourth-lowest. Even home maintenance costs are $5,090, ranking as the sixth lowest in the U.S.
  • 3. Indiana – $14,903/year
    Indiana runs only slightly more expensive than Mississippi. Its homeowners get a big break with energy and utility bills, averaging on the lower end at $3,787 a year. Its home maintenance costs are also modest at $5,172, ranking ninth lowest.
  • 4. Missouri – $15,349/year
    The Show-Me State shows up strong when it comes to low cost. Missouri has the 10th lowest energy and utility costs at $3,811 a year and matches that rank for home maintenance, averaging $5,272. Internet and cable costs are also reasonable, ranking 11th lowest nationwide at $1,415 annually.
  • 5. Arkansas – $15,362/year
    Arkansas keeps things affordable for homeowners when it comes to property taxes, which rank third-lowest nationwide at just $1,445 annually. Home maintenance costs are also budget-friendly, coming in seventh lowest at $5,126. Plus, Arkansas shares the eighth-lowest spot for internet and cable bills, averaging $1,378 a year.

Bankrate’s study found a wide range in homeownership costs across the country, with costs in Hawaii, the most expensive state, nearly triple what they are in West Virginia, the least expensive.

Not surprisingly, the East and West Coast states tend to have the highest hidden costs. Their high home values (which influence maintenance budgets) and steep property taxes play a significant role in making them so expensive.

All 10 states with the highest costs (Hawaii, California, New Jersey, Massachusetts, Washington, Connecticut, New Hampshire, Colorado, Florida and Rhode Island) are among the 20 most expensive states for home maintenance budgets and the 25 most expensive states for property taxes.

More moderate costs prevail in the middle of the country. Southern and Midwestern states offer some of the lowest hidden costs, thanks to lower housing prices, utility bills and property taxes. The 10 lowest-cost states (West Virginia, Mississippi, Indiana, Missouri, Arkansas, Iowa, Michigan, Ohio, Alabama and North Dakota) have lower-than-average home maintenance budgets and property taxes.

  • Homeownership costs by state

    State

    Total Hidden Costs of Homeownership (2025)

    Property Tax 2024

    Homeowners Insurance- 2025

    Utilities/Energy Costs (2024*) 

    Internet/Cable Costs (2024*) 

    Home Maintenance Costs (2025)

    Hawaii

    $34,573

    $4,301

    $1,295

    $7,871

    $1,465

    $19,642

    California

    $32,262

    $7,378

    $1,439

    $4,680

    $1,428

    $17,338

    New Jersey

    $29,751

    $10,485

    $1,193

    $5,885

    $1,664

    $10,524

    Massachusetts

    $29,277

    $7,987

    $1,681

    $5,661

    $1,664

    $12,284

    Washington

    $27,444

    $5,966

    $1,508

    $5,078

    $1,726

    $13,166

    Connecticut

    $27,170

    $8,693

    $1,637

    $6,071

    $1,428

    $9,342

    New Hampshire

    $25,870

    $7,990

    $1,033

    $4,916

    $1,899

    $10,032

    Colorado

    $25,766

    $3,909

    $3,194

    $4,072

    $1,577

    $13,014

    Florida

    $24,713

    $5,025

    $5,292

    $4,234

    $1,515

    $8,648

    Rhode Island

    $23,885

    $6,414

    $2,324

    $4,072

    $1,390

    $9,684

    Oregon

    $23,069

    $4,970

    $1,060

    $4,991

    $1,614

    $10,434

    Maryland

    $22,992

    $4,825

    $1,671

    $4,991

    $1,651

    $9,854

    Vermont

    $22,501

    $6,457

    $839

    $5,587

    $1,862

    $7,756

    Montana

    $22,456

    $3,435

    $2,798

    $4,010

    $1,676

    $10,538

    Utah

    $21,939

    $3,248

    $1,274

    $3,911

    $1,688

    $11,818

    Nebraska

    $21,739

    $4,030

    $6,030

    $4,432

    $1,465

    $5,782

    Virginia

    $20,828

    $4,238

    $1,679

    $4,209

    $1,564

    $9,138

    Maine

    $20,780

    $4,357

    $1,244

    $6,183

    $1,465

    $7,532

    Texas

    $20,710

    $4,447

    $4,049

    $3,861

    $1,527

    $6,826

    Wyoming

    $20,325

    $3,144

    $1,306

    $4,631

    $1,564

    $9,680

    Arizona

    $20,211

    $2,436

    $2,268

    $4,581

    $1,502

    $9,424

    Alaska

    $20,183

    $4,297

    $947

    $5,438

    $1,440

    $8,062

    Illinois

    $19,741

    $6,243

    $2,140

    $4,134

    $1,515

    $5,710

    Kansas

    $19,721

    $3,572

    $4,664

    $4,507

    $1,316

    $5,662

    Idaho

    $19,193

    $2,493

    $1,351

    $4,494

    $1,378

    $9,476

    Minnesota

    $19,113

    $2,955

    $1,079

    $3,787

    $1,378

    $9,916

    Nevada

    $19,115

    $4,032

    $2,628

    $3,613

    $1,440

    $7,400

    South Carolina

    $18,225

    $2,135

    $2,500

    $4,010

    $1,477

    $8,102

    New Mexico

    $17,873

    $2,331

    $2,205

    $4,494

    $1,440

    $7,402

    Delaware

    $17,686

    $3,101

    $2,009

    $3,588

    $1,502

    $7,512

    Georgia

    $17,712

    $2,153

    $973

    $4,668

    $1,937

    $7,956

    Wisconsin

    $17,571

    $4,157

    $1,246

    $4,494

    $1,316

    $6,358

    Oklahoma

    $17,554

    $2,080

    $4,563

    $4,631

    $1,341

    $4,940

    South Dakota

    $17,543

    $3,574

    $3,012

    $3,253

    $1,179

    $6,524

    Tennessee

    $17,333

    $1,915

    $2,523

    $3,600

    $1,502

    $7,792

    North Carolina

    $17,262

    $2,585

    $2,049

    $3,613

    $1,403

    $7,612

    Pennsylvania

    $17,162

    $4,062

    $1,245

    $4,358

    $1,490

    $6,008

    Louisiana

    $16,498

    $1,640

    $4,135

    $4,085

    $1,626

    $5,012

    Kentucky

    $16,432

    $1,726

    $3,515

    $4,345

    $1,428

    $5,418

    North Dakota

    $16,389

    $2,967

    $2,709

    $3,563

    $1,378

    $5,772

    Alabama

    $16,365

    $1,241

    $2,968

    $4,991

    $1,490

    $5,674

    Ohio

    $16,259

    $3,713

    $1,362

    $4,668

    $1,539

    $4,976

    Michigan

    $16,045

    $3,303

    $2,163

    $4,022

    $1,515

    $5,042

    Iowa

    $15,737

    $3,302

    $2,192

    $4,147

    $1,490

    $4,606

    Arkansas

    $15,362

    $1,445

    $3,155

    $4,258

    $1,378

    $5,126

    Missouri

    $15,349

    $2,467

    $2,383

    $3,811

    $1,415

    $5,272

    Indiana

    $14,903

    $2,729

    $1,738

    $3,787

    $1,477

    $5,172

    Mississippi

    $14,810

    $1,490

    $3,450

    $3,302

    $1,477

    $5,090

    West Virginia

    $12,579

    $1,063

    $1,009

    $3,873

    $1,502

    $5,132

    *Adjusted for inflation

Hidden costs of homeownership: behind the numbers

A variety of interrelated factors are behind the high hidden costs of homeownership, and they reflect some interesting socio-economic trends.

Not surprisingly, states with the highest home prices tend to have the highest expenses too: The cost of living is just pricier in these places overall. But the increase in home values, in particular, has ripple effects – as in property taxes. According to real estate data analyst Cotality, property taxes for single-family residences have risen an average 27 percent from 2019 to 2024. And once they go up, they often lag in going down, even if housing prices soften.

Rivaling the rise in property taxes is that of residential utilities: electric and gas bills, increasing to the tune of nearly 30 percent since 2021 and almost 40 percent since 2019, respectively, according to the U.S. Energy istration. Largely due to rising transmission and distribution costs, those increases are outpacing the general inflation rate. 

Also outpacing inflation: the notorious rise in homeowners insurance s, which have grown by 24 percent nationwide from 2021 to 2024. Again, some of the increase reflects rising home prices – the more valuable a property, the more it costs to insure it – but the growing frequency of extreme weather events and natural disasters has played a major part as well.

Another hidden homeownership cost

An increasing number of homes are located in homeownership association (HOA) neighborhoods or communities: 29% of the U.S. population lives in an HOA as of 2021, according to the Community Associations Institute. The U.S. Census Bureau calculates the average monthly HOA fee as $243, which equals $2,913 a year.

By far, the single most expensive homeownership cost is maintenance: routine upkeep and minor fixes to a property. The impact of general inflation on the expenses has been significant, as we noted earlier. Beyond Bankrate’s calculations, there are reasons why these costs are rising, and are likely to continue to increase too – namely, the nation’s aging housing stock. The median age of an American home is over 40 years old. Small wonder that in 2023, the average maintenance spending per homeowner for houses built before 1980 climbed 76 percent, notes the t Center for Housing Studies at Harvard University. 

With homes that old, “upkeeping” often segues into “upgrading,” as major features and systems require replacement. Given today’s high home prices, many people are opting to stay put and fix up, instead of moving; many older Americans want to age in place in their homes too. Year-over-year spending for home renovation and repair will reach a record $526 billion by the first quarter of 2026, the t Center predicts.

Many of these expenses, like property taxes and utilities, are necessary and non-negotiable. Others, relating to repair and maintenance, are important investments, crucial for building home equity. But add all these hidden costs together, and you can see how homeownership has become a $21,400-a-year proposition in the U.S. today.

  • Methodology

    Bankrate’s Hidden Costs of Homeownership Study analyzes the average annual expenses associated with owning and maintaining a single-family home nationwide and in every state in 2025. Bankrate defines those expenses as costs beyond a mortgage, including property taxes, homeowners’ insurance, utility and energy costs, internet and cable bills and home maintenance budgets.

    Bankrate estimated home maintenance costs at 2 percent of the median sale price for single-family homes in each state. Bankrate accessed Redfin’s national and statewide February median sale price data for single-family homes on April 8, 2025.

    Average annual national and statewide utility bills include electricity, gas, water and sewer, and waste and recycling. The 2024 data was collected through the bill payment company Doxo. Average annual national and statewide internet and cable bills were also collected using 2024 data from Doxo. Average annual national and statewide property taxes were collected using 2024 data from ATTOM, a provider of nationwide property data. Bankrate used national and statewide 2025 internal Quadrant data for average annual homeowners insurance s.

    To accurately determine hidden homeownership expenses in 2025, Bankrate adjusted the most up-to-date national and statewide figures for property taxes, utility/energy costs and internet and cable bills for inflation using the Consumer Price Index. Bankrate’s study did not include mortgage payments, other monthly expenses or debts.

    Bankrate excluded New York from this study since its data sources didn’t calculate average property taxes for that state.

© 2025 Bankrate.com