The Real Cost of Owning a Home in 2025: Hidden Expenses Now Near $16,000 a Year

Homebuyers often run the math on principal and interest—and stop there. But in 2025, the “other” line items are the bigger surprise. A new analysis from Zillow and Thumbtack puts the average nonmortgage costs of owning a home—maintenance, homeowners insurance, and property taxes—at $15,979 per year, about $1,325 a month on top of the mortgage. Those costs rose 4.7% over the past year while household incomes increased 3.8%, widening the affordability gap. [zillow.com][zillow.mediaroom.com][seekingalpha.com][ts2.tech]

What’s included in “hidden costs”

These figures reflect a “typical” home using Thumbtack’s national maintenance index and Zillow’s estimates for taxes and insurance. [zillow.com][zillow.mediaroom.com]

• Maintenance: $10,946/year
• Homeowners insurance: $2,003/year
• Property taxes: $3,030/year

Where the burden is heaviest The squeeze is most acute in high‑cost coastal metros. Estimated annual totals reach roughly $24,381 in New York, $22,781 in San Francisco, and $21,320 in Boston—before principal and interest. Local risk profiles (wind, flood, wildfire), assessment practices, and labor/material costs drive large differences metro to metro. [zillow.com][zillow.mediaroom.com]

Insurance is the wild card Premiums have been the fastest‑moving piece. Zillow notes average homeowners insurance costs are up 48% since early 2020, with Miami around $4,607/year after a five‑year increase near 72%. Several metros outside Florida—New Orleans, Sacramento, Atlanta, Riverside—also saw outsized gains. [zillow.com][zillow.mediaroom.com] Independent data points to the same direction: ICE’s Mortgage Monitor found the average annual property insurance premium among mortgaged single‑family homes rose by a record $276 (+14%) in 2024 to $2,290, capping a five‑year climb of 61%. [ir.theice.com]

Property taxes: slower rates, bigger bills Even as effective tax rates dipped, tax bills rose with home values. ATTOM’s 2024 analysis shows the average single‑family property tax bill increased to roughly $4,300, while the average effective tax rate edged down to 0.86% as values rebounded. Translation: many owners paid more dollars in 2024 even if the tax rate itself ticked lower. [attomdata.com]

Mortgage rates and the monthly reality Carrying costs don’t exist in a vacuum. Freddie Mac’s Primary Mortgage Market Survey pegged the average 30‑year fixed at 6.24% as of November 13, 2025. While that’s lower than peaks earlier in the cycle, it still keeps all‑in payments elevated when combined with rising taxes, insurance, and upkeep. [globenewswire.com]

How owners and buyers can plan

• Re‑shop insurance annually: Compare carriers, adjust deductibles thoughtfully, and verify discounts for mitigation (roof, water shut‑off, security). [ir.theice.com]
• Preventive maintenance: Budget for seasonal tasks (HVAC servicing, roof and gutter upkeep, tree trimming) to avoid bigger repairs later; Thumbtack’s index helps set expectations. [zillow.mediaroom.com]
• Stress‑test your budget: Underwrite your purchase using PITI+M (principal, interest, taxes, insurance + maintenance). On a typical home, that “+M” is now roughly $900/month; taxes and insurance add another ~$425/month combined on average. [zillow.com][zillow.mediaroom.com]
• Know your local tax mechanics: Assessment timing, exemptions, and appeals can materially change your bill; ATTOM’s data shows wide state and metro variation. [attomdata.com]

Bottom line In 2025, the soft costs of owning a home aren’t soft at all. Nonmortgage expenses have climbed faster than incomes, and they vary widely by location. Understanding—and budgeting for—the full 12‑month carrying cost is essential whether you’re buying your first place or deciding how long to keep the one you have. [zillow.com][zillow.mediaroom.com][globenewswire.com][attomdata.com][ir.theice.com][seekingalpha.com][ts2.tech]