The
average
cost
of

homeownership
has
increased
by
26%
over
the
past
four
years
to
more
than
$18,000
annually,
according
to

Bankrate’s
newly
released
Hidden
Costs
of
Homeownership
study. 

The
increase
reflects
rising
home
prices,
which
went
up
40%
since
the
beginning
of
the

COVID-19
pandemic,
mainly
due
to
a
lack
of
inventory,
according
to
the
study.

It’s
also
due
to
growing

property
taxes
and

homeowners
insurance
premiums
as
providers
exited
states
where
risks
are
elevated.

“Homeownership
is
an
important
wealth-builder
for
many
Americans,
but
it
ain’t
cheap,”
Bankrate
analyst
Jeff
Ostrowski
said
in
the
report.
“These
numbers
show
that
the
costs
of
owning
a
home
are
at
the
same
level
as
buying
a
used
car
every
year.
While
homeownership
is
worth
the
financial
sacrifice,
homeowners
also
need
to
be
aware
of
the
ongoing
expenses
that
go
along
with
owning
property.

“No
matter
where
you
live,
make
sure
you
include
some
cushion
in
your
monthly
budget
to
absorb
the
shock
of
unplanned
expenses,”
Ostrowski
added.
“After
you
achieve
homeownership,
you
need
to
fatten
up
your
emergency
savings
account
for
all
those
surprise
repairs.”

Bankrate
calculated
the
average
annual
cost
of
owning
a
single-family
home
based
on
items
such
as
property
taxes,
homeowners
insurance
and
maintenance
costs,
as
well
as
energy,
internet
and
cable
bills. 

Bankrate
estimates
these
costs
at
2%
of
the
typical
home
value,
which
stood
at
$436,291
in
March,
according
to

Redfin. 

The
data,
published
on
Monday,
showed
that
the
average
total
expenses
are
$18,118
a
year,
or
an
additional
$1,510
per
month
on
top
of
a

mortgage
payment. 

To
compare,
in
2020,
the
average
was
$14,428
a
year,
or
$1,202
per
month.

The
most
expensive
state
for
these
ongoing
costs
of
homeownership
is
Hawaii
($29,015),
where
a
typical
single-family
home
price
reaches
$993,000,
the
data
shows.
Hawaii
is
followed
by
California
($28,790),
Massachusetts
($26,313),
New
Jersey
($25,573)
and
Connecticut
($23,515). 

Utah
and
Idaho,
where
home
prices
escalated
during
the
COVID-19
pandemic,
had
the
most
significant
percentage
increase
in
homeownership
costs
from
2020
to
2024,
at
44%
and
39%,
respectively. 

Meanwhile,
the
least
expensive
states
are
Kentucky
($11,559),
Arkansas
($11,692),
Mississippi
($11,881),
Alabama
($12,258)
and
Indiana
($12,259).

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