Hidden Expenses Are Adding to the Housing Affordability Crisis

In the U.S., home prices continue to climb, but that’s not the only metric making housing expensive, according to recent survey data from consumer financial services company Bankrate. In addition to a monthly mortgage payment, the average costs of property taxes, homeowners insurance, and home maintenance costs, among other expenses, add up to $18,118 a year for a typical single-family home. Nationally, that is an additional $1,510 per month on top of a mortgage payment. 

In some states, costs are even more staggering. Hawaii has the highest amount of hidden expenses, with an average annual cost of $29,015, and California follows in second place with an average annual cost of $28,790. 

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.

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