Homeownership comes with many rewards—but as today’s market reveals, it also brings a wave of hidden costs that are climbing faster than most household incomes. According to a new study from Zillow and Thumbtack, the average U.S. homeowner is now spending nearly $16,000 each year on expenses above and beyond their mortgage payment, with insurance premiums leading the pack as the fastest-rising cost driver .
The Invisible Creep of Homeowner Costs
Many New Jersey homeowners are feeling the squeeze, with annual “hidden” expenses now averaging $15,979 nationwide . That’s about $1,325 each month in addition to the mortgage payment, covering:
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$10,946 for ongoing home maintenance and upkeep
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$2,003 on homeowner’s insurance
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$3,030 for property taxes
These figures represent a 4.7% jump over the past year—surpassing the 3.8% rise in U.S. household incomes during the same period . High-cost metropolitan areas like New York City ($24,381), San Francisco ($22,781), and Boston ($21,320) are seeing the steepest increases, but the impact is nationwide.
Insurance Premiums—The New Hidden Barrier
The biggest culprit? Home insurance premiums, which have surged 48% since February 2020 across the U.S.—almost double the pace of income growth . In fact, the typical annual premium now tops $2,000, with some regions—such as Miami, Florida—seeing costs soar as high as $4,607 (up 72% in just five years). Other sharp premium hikes include:
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79% in New Orleans
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59% in Sacramento
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58% in Atlanta
A report by Zillow sees that insurance costs are rising nearly twice as fast as homeowner incomes. It’s not just a budget line item. It’s a barrier to entry for aspiring first-time buyers and for families already stretched super thin.
As affordability concerns grow, understanding these hidden costs is essential—especially for buyers navigating New Jersey’s competitive real estate market. It’s important to budget not only for mortgage payments and property taxes, but also for increasing insurance premiums and the many expenses required to keep your home in top shape.
Typical annual maintenance might include:
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Appliance service and repairs
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Cleaning (carpet, ducts, chimney, grout, windows)
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HVAC and heating system service
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Deck, lawn, and roof maintenance
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Tree trimming, gutter cleaning, and more
These aren’t just optional add-ons—they’re vital for protecting your investment and ensuring long-term property value .
Moving Forward with Confidence
At Counsellors Title Agency, we encourage all New Jersey homeowners and buyers to take a closer look at the full spectrum of costs associated with owning a home. By planning ahead and staying informed, you can make smarter financial decisions—and safeguard both your property and your peace of mind in today’s evolving market .