Sales + Marketing

Where the ‘Hidden’ Costs of Homeownership Are Adding up the Fastest

As regional home prices rise, auxiliary costs such as insurance, taxes, and maintenance are also going up
June 29, 2023

U.S. home prices have risen from a median $327,100 in the fourth quarter of 2019 to $436,800 in the first quarter of 2023, and along with an uptick in the overall cost of for-sale homes, today's auxiliary costs, including insurance, taxes, maintenance, and utility costs, are also reaching new highs. A recent Zillow survey revealed that in Q1 2023, the median amount of those added costs totaled $14,155 per year in 39 large U.S. metro areas, but was even higher in cities such as San Francisco, New York, and Los Angeles.

Maintenance costs made up the largest share of a home’s auxiliary costs, accounting for an average $6,413 per year, followed by an average $3,216 for utilities, $2,827 in property taxes, and roughly $1,699 in homeowner’s insurance, though actual totals vary by region, The New York Times reports.

According to a recent Zillow study of housing costs in the first quarter of 2023, the median amount of these auxiliary expenses in 39 large U.S. metro areas was $14,155 a year. Among those metros (where sufficient data was available), San Francisco had the highest annual hidden costs (a median of $22,791), while Las Vegas had the lowest ($9,886).

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