As mortgage rates remain stubbornly high, real estate technology company Zillow issues a warning for homebuyers about the hidden costs of homeownership.
“Buying a home comes with a price tag, but keeping that home comes with a second one,” wrote Zillow.
Beyond the principal mortgage, other expenses of homeownership — such as routine maintenance, property taxes, and insurance policies — now total $16,566 annually across the country, tacking on roughly $1,380 each month, according to a new analysis from Zillow.
“Many households focus so much on winning the home and underestimate what it costs to live in it,” said Zillow Senior Economist Kara Ng. “Long after they receive the keys, insurance, taxes and upkeep are recurring expenses to plan for.”
“Since these homeownership costs vary so much by market, home shoppers should run the numbers and understand what they can truly afford before they make an offer.”
Freddie Mac reports weekly 30-year fixed-rate mortgage is 7.32%
The cost of maintenance, property taxes and home insurance are particularly difficult to navigate for many people considering current mortgage rates.
On Oct. 22, the weekly 30-year fixed-rate mortgage clocked in at 7.32%, which is still painfully high, but down from Oct. 15 when it averaged 7.40%, according to Freddie Mac.
“The average 30-year fixed-rate mortgage declined this week, offering some relief to prospective homebuyers,” said Sam Khater, Freddie Mac’s chief economist.
On Oct. 28, the daily FRM was 7.35%, according to Mortgage News Daily (MND). Even with the recent uptick, 30-year fixed mortgage rates sit just 5 basis points higher than last week’s 7.30% trough and are up a mere 0.02% from yesterday’s 7.33% reading.
“Today’s Fed announcement had no impact on mortgage rate movement, and minimal impact on intraday bond market volatility,” wrote MND’s Matthew Graham. “Well before the Fed announcement, the bond market was already slightly weaker compared to yesterday’s latest levels.”
“As a result, the average mortgage lender set rates just a hair higher,” Graham added. “Recent upward pressure is a factor of improvement in investor sentiment surrounding the tech sector.”
Zillow explains hidden homeownership cost trends
For the typical U.S. homeowner, additional expenses break down into $11,171 for annual maintenance, $3,129 for property taxes, and $2,266 for homeowners insurance, according to Zillow.
“Over the past five years, homeowners insurance premiums have jumped 54%, maintenance costs have risen 32%, and property taxes have gone up 19%,” Zillow reported. “But the pace is cooling. Overall, the cost of owning a home rose just 3% in the past year, compared with 32% over five years.”
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Of all the three main costs, maintenance is showing the clearest slowdown.
“Yearly increases in maintenance costs have shrunk every year, from 9% in 2022 to 1% in 2026,” Zillow wrote.
“Insurance may be following the same path. Federal data shows insurance premiums rose just 0.3% between February and June 2026, though they remain well above where they were five years ago.”
Homeowner costs vary by region
A small number of major metropolitan areas have seen the steepest increases in costs.
Across 19 of the 30 metropolitan areas analyzed by Zillow, insurance premiums have surged by at least 50% over the past five years — with Dallas (+75%), Tampa (+71%), Denver (+70%), and Houston (+69%) recording the steepest climbs.
Miami tops the nation in sheer cost at nearly $5,000 annually, followed by five other markets — Dallas, Houston, Tampa, Orlando, and Denver — where yearly premiums now exceed $3,000.
In Houston, Phoenix, Denver, and Nashville, annual insurance bills have even outpaced property taxes, a trend largely fueled by severe weather events such as damaging winds, tornadoes, and hail in vulnerable regions like Dallas and Denver.
“Maintenance remains the largest hidden cost everywhere, at roughly two-thirds of the national total, and tops $12,000 in six major metros, including Seattle ($12,594) and Boston ($12,486),” Zillow wrote.
“Los Angeles experienced the sharpest surge in maintenance expenses, jumping 27% year over year,” the real estate technology company added.
“This steep rise reflects a mix of regional factors, including wildfire-related recovery efforts, heightened demand for home services, and persistently elevated labor costs.”
Related: Zillow predicts major mortgage rate, housing market change
