Whether you are planning to buy a home or currently a homeowner, you need to prepare your pocketbook for potential pain. Costs of owning and maintaining a home are on the rise, so if you are not already putting money aside in an emergency fund or another rainy-day account…you may want to start.
Owning a home comes with responsibilities that renters don’t face but it also offers long-term benefits. If you or someone you care about is considering the move from renting to homeownership, understanding the full cost of owning a home is a critical first step toward doing it confidently.
A 2025 study from Zillow and Thumbtack found that the average homeowner nationwide spends nearly $16,000 per year on non-mortgage homeownership expenses. These costs have increased roughly 4.7% year over year. Planning ahead makes the difference between stress and stability.
Homeowners Insurance
Homeowners insurance is one of the largest non-mortgage expenses, and premiums have risen significantly. Increases vary widely by region, and many experts expect upward pressure to continue.
How homeowners can plan:
- Shop insurance rates regularly and review coverage annually
- Consider higher deductibles where appropriate
- Bundle home and auto policies
- Ask about mitigation or safety discounts
Property Taxes
The average homeowner pays just over $3,000 per year in property taxes, and those costs rarely go down.
Before buying, it’s smart to run the numbers. A mortgage lender can help estimate your expected tax obligation and structure escrow payments, so taxes are paid gradually throughout the year rather than all at once.
Home Maintenance
Maintenance is part of owning a home and one of the most underestimated costs.
A common rule of thumb is to budget 1–2% of the home’s value annually for maintenance and repairs. Preventative maintenance and addressing small issues early can significantly reduce the likelihood of costly emergencies.
Planning Ahead Makes Homeownership Work
Unexpected expenses are stressful, but they don’t have to derail your finances.
Setting aside money in a dedicated savings account for home expenses can provide peace of mind and financial flexibility. Contributing regularly, even in small amounts, turns unpredictable costs into manageable ones.
Why Homeownership Still Makes Sense
Owning a home isn’t about avoiding costs, it’s about planning for them. Unlike rent, mortgage payments build equity. Unlike annual rent increases, fixed-rate mortgages provide long-term payment stability. And over time, homeownership remains one of the most effective ways for families to build net worth.
With realistic expectations, smart budgeting, and the right financial partner, homeownership continues to be a powerful and achievable goal even in a changing market.
If you have questions about what owning a home would truly cost in your local area, a mortgage professional can help you run the numbers and plan with confidence.
