Anyone familiar with the U.S. housing market knows the costs of homeownership have skyrocketed over the past few years. If you purchased a home in the last four years, you may be feeling caught off guard, or even regret the amount of money you’re spending to maintain your home. If so, you’re not alone.

An often-overlooked factor driving up the costs of homeownership, especially in inflationary times, is maintenance. The average annual cost of owning and maintaining a single-family home in the U.S. is more than $18,000 a year — 26 percent higher now compared to four years ago, according to Bankrate’s new Hidden Costs of Homeownership Study.

That means — excluding mortgage payments — property taxes, home insurance, utilities and maintenance add up to roughly $18,000 annually for a single-family home priced around the U.S. median sales price of $400,000, the study found. That’s a 26 percent jump from before the pandemic. 

Study: Single-Family Home Maintenance Costs Soar Over $18,000 Annually

Everything has gotten more expensive in the past four years. 

Home prices are up 40 percent since the beginning of the pandemic. In March 2020, the median price of an existing home was $280,700, according to the National Association of Realtors. By March 2024, that figure was $393,500.

To determine average hidden homeownership costs nationally and in every U.S. state, Bankrate aggregated the average costs of property taxes, homeowners insurance, and 2 percent of the median sales price of single-family homes to account for maintenance and repair costs. 

Bankrate also included energy, internet and cable bills and adjusted figures for property taxes, energy, internet and cable bills and homeowners insurance premiums for inflation.

Bankrate found that the tab adds up to $18,118 a year for a typical single-family home (valued at $436,291, according to Redfin) in all 50 states. Nationally, that is an additional $1,510 per month on top of a mortgage payment. Maintenance alone is the biggest piece of that price tag, followed by property taxes and energy costs. 

In 2020, those same expenses totaled $14,428 annually for a typical single-family home, equivalent to $1,202 per month.

Not only are consumers contending with the after-effects of pandemic-driven inflation. Prices overall are well above their 2020 levels, and dollars don’t go as far as they did a few short years ago. 

From March 2020 to March 2024, cumulative inflation amounted to 21 percent, according to the U.S. Bureau of Labor Statistics.

Insurance costs are another factor squeezing homeowners. Annual premiums have been soaring, driven by rising home values, increasing construction costs and natural disasters.

Single-family homeowners in pricey states like California, Hawaii and New Jersey now pay more than $25,000 a year in ownership and maintenance costs.

The lowest-cost states for homeowners include Arkansas, Kentucky and Mississippi.

While average hidden costs of homeownership are up 26 percent nationally, the three states with the biggest percentage increases from 2020 to 2024 are: 

• Utah (up 44 percent) 
• Idaho (up 39 percent) 
• Hawaii (up 38 percent). 

Utah and Idaho had large jumps in home prices during the pandemic, and home values are the biggest driver of Bankrate’s estimates.

How Expensive is Homeownership in Your State?

These are the five states with the highest costs of homeownership:

1. Hawaii

With an average annual cost of $29,015, Hawaii is an expensive place to own a home. Much of the tab stems from high home values. With a typical single-family home price of $993,000, applying Bankrate’s estimated maintenance costs of 2 percent of the home’s value leads to a hefty $19,860 per year. The other factors contributing to ongoing costs: average annual property taxes of $3,724; average annual homeowners insurance of $1,455; average annual cable and internet costs of $1,508; and average annual energy bills of $2,468.

2. California

The Golden State is another place where ongoing costs are inflated by home values. The median single-family sale price in March was $848,300, which means maintenance costs of $16,966 a year. Homeowners in California also pay average annual property taxes of $6,832, average annual homeowners insurance of $1,572, average annual cable and internet costs of $1,434 and average annual energy bills of $1,986. The total annual tab: $28,790.

3. Massachusetts

Massachusetts property taxes are a big lift — the typical bill is $7,413 — and single-family home prices are high. At a median sale price of $624,200, you get estimated home maintenance costs of $12,484. Homeowners insurance is also pricier than average, at $1,918 a year, typically. Meanwhile, homeowners in this state pay $1,557, on average, in cable and internet costs, plus an average $2,941 in energy bills, per year. Taken together, Massachusetts homeowners can expect $26,313 in hidden costs.

4. New Jersey

Garden State property taxes average $10,026 a year, the highest in the nation. Single-family home prices are a median of $502,400, translating to maintenance costs of $10,048. Homeowners insurance costs an average $1,466 a year, while annual cable and internet and energy bills run an average $1,594 and $2,439, respectively. Overall, New Jersey homeowners face $25,573 in stealth expenses.

5. Connecticut

Another state with high property taxes, Connecticut homeowners pay an average of $8,073 per year. Single-family home prices aren’t as high — the median of $435,900 leads to annual costs of $8,718, just below the national average. Along with annual cable and internet costs averaging $1,508, annual energy bills averaging $3,367 and annual homeowners insurance averaging $1,850, homeowners in Connecticut typically spend $23,515 in hidden costs.

States with the Least Expensive Homeownership Costs

Alaska, Texas and Louisiana had the smallest percentage increases from 2020 to 2024 in hidden homeownership costs, with Alaska and Texas both experiencing a 14 percent increase and Louisiana increasing by 15 percent.

These are the five states with the lowest costs of homeownership:

1. Kentucky

With an average annual cost of $11,559, The Bluegrass State is the least expensive place to own a home. This is largely a function of affordable home values. With a typical single-family home price of $255,800, the 2 percent rule of thumb equates to $5,116. The other ongoing costs: average property taxes of $1,547 a year; average annual homeowners insurance costs of $1,380; average annual energy bills of $2,216; and average annual cable and internet costs of $1,300.

2. Arkansas

Arkansas is another place where ongoing costs stay in check thanks to modest home values. The median single-family sale price in March was $249,300, which means maintenance costs of $4,986 a year. In addition, homeowners in Arkansas typically pay average annual property taxes of $1,292, average annual energy bills of $2,309 and average annual homeowners insurance of $1,805. The state also comes with average annual cable and internet costs of $1,300 — the same as Kentucky. The total annual tab: $11,692

3. Mississippi

Homeowners here catch a break because of affordable prices. With a median single-family sales price of $242,500, maintenance comes out to $4,850 a year. The state’s property taxes average just $1,380 per year, while annual energy bills average $2,263 and annual cable and internet costs average $1,410. Still, homeowners insurance is pricier than average, at $1,978 a year. The total expense is $11,881.

4. Alabama

The picture here is similar to other affordable states: Alabama’s median single-family sales price of $271,800 works out to estimated maintenance costs of $5,436. The state’s annual property taxes aren’t as high, at $1,075, but annual homeowners insurance is above-average, at $1,804. Meanwhile, annual cable and internet costs average $1,447 and annual energy bills average $2,497.

5. Indiana

Indiana’s more affordable single-family median of $252,900 equates to annual maintenance costs of $5,058, and homeowners insurance is just $1,185. On a yearly basis, homeowners in the state pay an average $2,063 in property taxes, an average $1,422 in cable and internet costs and average $2,531 in energy bills. In all, Hoosiers can expect $12,259 in hidden costs.