From Fox News: The hidden costs of homeownership are reaching nearly $16,000 per year nationwide, underscoring the ongoing affordability crisis crippling potential buyers.
A new analysis from real estate marketplace Zillow and Thumbtack, an online marketplace for local services, found that insurance, maintenance and property tax can cost the average homeowner $15,979 per year. Maintenance costs account for $10,946 of that, while about $2,003 goes toward homeowners insurance and $3,030 toward property taxes, according to the November analysis.
Collectively, those housing costs jumped 4.7% in the past year, outpacing household incomes, which rose just 3.8%, according to the report. However, coastal metros are getting squeezed the most, with costs in New York City reaching $24,381. In San Francisco, costs reached $22,781, which is slightly higher than the $21,320 reported in Boston.
Part of the issue, according to the analysis, is that insurance premiums have risen 48% nationwide since February 2020, topping $2,000 annually on the typical home. However, Florida, in particular, is getting hammered by insurance premiums due to the state’s high hurricane and flood risks, rising rebuilding costs and expensive reinsurance for insurers. On top of that, fraud and lawsuits have driven up legal costs and many insurers have left the state, which is reducing competition and driving up prices.
The report lists multiple cities, both in Florida and nationwide, as examples of how home insurance premiums have spiked in the past five years:
- Miami, FL – premiums average $4,607 per year, up 72%
- Jacksonville, FL – premiums rose 72%
- Tampa, FL – premiums rose 69%
- Orlando, FL – premiums up 68%
- New Orleans, LA – premiums increased 79%
- Sacramento, CA – up 59%
- Atlanta, GA – up 58%
- Riverside, CA – up 56%
The Zillow Group analysis shared four tips for prospective buyers:
- Know your true buying power. Start with BuyAbility(opens in a new window)SM, a personalized affordability tool available on the Zillow app. It allows you to set a target monthly payment, which can be adjusted to account for these costs.
- Plan for maintenance costs early. Homeownership doesn’t end on closing day. Using Thumbtack’s free personalized maintenance guides, available on the Thumbtack app(opens in a new window), buyers can anticipate ongoing upkeep expenses to avoid surprises and budget with confidence.
- Reconsider the type of home you buy. A large single-family home with a big backyard often comes with higher maintenance costs. Budget-conscious buyers can explore more affordable options, such as townhomes or condos, which may offer less upkeep.
- New construction can save later. Sometimes spending more upfront pays off. A new-construction home typically requires less maintenance in the near term, allowing you to enjoy your new space with fewer unexpected repair bills.
Hidden costs of homeownership jump, tightening the squeeze on buyers https://t.co/WP3928Pmpp
— FOX Business (@FoxBusiness) November 18, 2025
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