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Hidden Costs of Homeownership Jump to $15,979 Annually, Outpacing Income Gains

Insurance premiums are rising faster than incomes, tightening the path to homeownership.

Overview

  • The typical owner spends $10,946 on maintenance, $3,030 on property taxes, and $2,003 on homeowners insurance each year.
  • These expenses rose 4.7% over the past year compared with 3.8% growth in household incomes.
  • Coastal markets face the heaviest burdens, reaching about $24,381 in New York, $22,781 in San Francisco, and $21,320 in Boston.
  • Homeowners insurance costs have climbed roughly 48% since early 2020; Miami now averages $4,607 a year with about 72% growth, with similar spikes in Jacksonville, Tampa, and Orlando.
  • Rising non-mortgage costs are pressuring the market, with reports of slower sales, longer times to contract, more price cuts, and expanding pockets of underwater mortgages.