Buying a home is a major financial milestone, but the real price tag doesn’t stop at the closing table. Beyond the mortgage and down payment, homeowners in the U.S. are shelling out an average of $21,400 each year just to keep their homes running, according to a new analysis by Bankrate.
The report—focused on the often-overlooked financial burdens of homeownership—tallied up typical annual costs tied to a median-priced single-family home, now valued at roughly $437,942. The total includes recurring expenses like property taxes, insurance, utilities, internet and cable, as well as routine upkeep and unexpected repairs.
Since 2020, these hidden costs have climbed significantly. Back then, homeowners spent about $14,428 annually. By 2024, that figure had reached $18,118—and it has now surged to over $21,000. Rising inflation, escalating home prices, and a tougher lending climate are all playing a role.
Where the Money Goes
According to Bankrate, maintenance tops the list, accounting for more than $8,800 annually. Utility bills—including electricity, gas, and water—add another $4,494. Property taxes average $4,314 nationwide, while homeowners insurance costs around $2,267. Internet and cable services tack on roughly $1,515 per year.
To estimate maintenance costs, analysts used a common industry rule of thumb—2 percent of a home’s value annually—as suggested by Fannie Mae. Combined, these expenses reveal how even a home that’s paid off can demand tens of thousands of dollars every year just to maintain.
Homeownership Costs Are Even Higher in the Garden State
New Jersey stands out for having some of the steepest annual home-related costs in the country. In fact, the state ranks third highest in the nation for hidden homeownership expenses in 2025, with the average homeowner paying around $29,751 annually—far above the national average.
Half of that burden comes from property taxes alone. With the highest property taxes in the U.S., New Jersey homeowners fork over thousands just to stay current with local levies. According to the data, residents also spend around $10,524 a year on upkeep, $1,664 for internet and cable, and $1,193 for homeowners insurance.
These costs were already high in 2024, when the state held the fourth-highest spot on the list. Back then, the average homeowner was paying about $25,573 per year. The increase reflects not just rising taxes, but the growing price of labor, materials, and essential services.
Why Costs Keep Rising
So why is owning a home becoming so expensive? It starts with the sticker price. The median U.S. home cost nearly $438,000 as of April 2025—up 44 percent from just five years ago, according to Redfin. Mortgage rates have also doubled since 2020, making borrowing far more expensive.
Factor in the higher price of utilities, repairs, and insurance, and it’s no wonder more homeowners are feeling financially stretched. What used to be considered manageable monthly bills have ballooned into major budget items.
Hidden Costs in NJ Are Only Getting Bigger
The dream of homeownership comes with a hidden bill—and it’s getting bigger. For many, especially in states like New Jersey, the annual cost of simply owning a home has become a major consideration, not just a footnote. Whether you’re buying your first home or budgeting for the long haul, it’s clear that the true cost of homeownership goes far beyond the mortgage payment.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.