Home Ideas The Hidden Cost of Homeownership, State by State

The Hidden Cost of Homeownership, State by State

June 13, 2024

If you own a home or are considering buying, you know that your monthly mortgage payment is only a fraction of what you’ll spend each year on homeownership. There are plenty of hidden costs associated with the purchase process as well as ongoing expenses ranging from property taxes to maintenance and repairs, which you don’t have to factor in if you rent (as well as utilities and insurance, which you likely do).

But it’s hard to conceptualize how much this will actually set you back and easy to be caught off guard if you don’t budget for expenses beyond your mortgage.

A new analysis from Bankrate looked at the average annual expenses—on top of a mortgage—that come with owning a single-family home in each state, including property tax, homeowners insurance, utilities (energy, internet, and cable), and home maintenance (calculated at 2% of median sale prices). The report then compared the hidden costs of homeownership in 2024 to those in 2020.

Across the United States, the hidden costs of homeownership and maintenance average $18,118 per year in 2024, an increase of 26% (or $3,689) from 2020. Hawaii has the most expensive homeownership costs averaging $29,015 annually, followed by California, Massachusetts, New Jersey, and Connecticut. Utah had the biggest percentage increase in hidden homeownership costs from 2020 to 2024 at a whopping 44%.

States with the least expensive homeownership costs include Kentucky ($11.559 per year on average), Arkansas, Mississippi, Alabama, and Indiana. Expenses in Alaska and Texas increased the least in the last four years at just 14%.

Here’s how your state stacks up.