The Hidden $24K Cost of Owning a Home in 2026
A mortgage may be your biggest housing expense, but it's far from the only one. Homeowners now spend an average of $23,686 a year on costs beyond their mortgage — or more than $700,000 over 30 years, according to Clever Real Estate.
Here's where that money goes — and why these costs are rising.
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Why the Average Homeowner Is Spending $24K a Year in Addition to Their Mortgage
Non-mortgage homeownership costs can add up quickly. Utilities and upkeep make up the largest share of these average annual expenses:
Utilities: $7,679
Maintenance: $5,162
Renovations: $3,929
Property taxes: $3,580
Homeowners insurance: $3,336
In many cases, these costs match or even exceed the average annual mortgage payment of $25,368.
Homeowners who are HOA members pay even more — an additional $4,196 per year in fees on average, bringing their annual total to $27,882.
Why Homeownership Costs Are Rising Across the US
It's become increasingly expensive to be a homeowner. According to the Clever Real Estate report, 82% of homeowners say non-mortgage costs have increased since they bought their home. Insurance, taxes, utilities and repairs are all climbing — often for different reasons.
"Homeowners' insurance premiums have jumped sharply in recent years, especially in states dealing with severe weather, wildfire or hurricane risk," said Kristen Herhold, director of public relations at Clever Real Estate. "Insurers are paying out more in claims and passing those costs along to homeowners. Our survey found that 62% of homeowners are stressed about rising insurance costs, and 22% worry they could lose coverage entirely."
Property taxes are climbing, too.
"Even when tax rates hold steady, rising home values mean higher assessments," Herhold said. "Two-thirds of homeowners (66%) say their property tax assessment has gone up significantly since they bought."
Utilities are also a big factor.
"Electricity, water and natural gas have all gotten more expensive thanks to inflation, fuel costs and infrastructure investments," Herhold said.
Maintenance and repairs cost more than they used to as well.
"Labor and materials are up across the board, and skilled trades remain in short supply, so when you need a roofer or an HVAC tech, you pay more for the work," Herhold said.
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Many Homeowners Underestimate These Hidden Costs
Homeowners often underestimate non-mortgage costs when buying a home. The report found that 29% of homeowners weren't aware of these additional costs when they purchased.
Property taxes, in particular, often come as a shock.
"About 41% of homeowners say their property tax bill has been more expensive than they originally expected," Herhold said. "Buyers tend to focus on the mortgage payment when they're shopping for a home, and taxes get tucked into escrow as an afterthought. Then assessments go up, and suddenly the monthly housing payment is a lot higher than what they signed up for."
Homeowners' insurance is the second-biggest surprise: 37% said it cost more than expected.
"Premiums can change significantly year to year, and the rate quoted at closing isn't always the rate at renewal," Herhold said.
Utilities also catch many buyers off guard (34%).
"The home you buy might cost a lot more to heat than the place you used to rent," Herhold said.
The other surprise is the cost of necessary repairs and replacements.
"A new HVAC system costs at least $5,000, and a new roof can be $10,000 or more," Herhold said. "Most buyers know these things will eventually need replacing, but they don't budget for the actual price tag or build a savings cushion. That's why 55% of homeowners say they couldn't cover a $5,000 emergency home repair without going into credit card debt."
How Homeowners Can Lower Their Non-Mortgage Costs
Finding an extra $24,000 in your annual budget can be challenging, but there are levers homeowners can pull to reduce their non-mortgage expenses. Herhold offered the following tips:
Shop around for your homeowners' insurance every year. "Loyalty doesn't pay in this market," Herhold said. "Get fresh quotes, raise your deductible if it makes sense for your savings and bundle with auto."
Find ways to lower your insurance costs. "About 41% of homeowners in our survey say they've already considered making changes to their home, such as adding storm shutters or impact-resistant roofing, specifically to lower their premiums," Herhold said.
Appeal your property tax assessment if you think it's too high. "Most counties have a formal appeal window each year," Herhold said. "If recent sales of comparable homes support a lower value, you have a real case."
Get serious about energy efficiency. "A smart thermostat, weatherstripping, LED bulbs and a professional energy audit can cut utility bills by 10% to 20%," Herhold said. "Bigger upgrades like new windows or better insulation pay back over time."
Don't skip preventive maintenance. "Servicing your HVAC twice a year, cleaning gutters and sealing leaks is a lot cheaper than waiting for something to break," Herhold said. "Most major systems last longer when they're maintained."
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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