Hidden costs of homeownership top $21,400 a year, experts say

A 2025 Bankrate estimate puts a typical single-family home in the U.S. at about $21,400 in annual hidden costs, and more than $8,800 of that is just maintenance. The mortgage is only the start of the bill for middle-class homeowners, where routine upkeep, repairs, taxes and insurance are increasingly colliding at the same time.

The Federal Reserve Bank of Philadelphia estimated the total cost of needed repairs to occupied housing units at $198.4 billion in 2024. Lower-income households made up 29.0% of occupied units, but accounted for 37.6% of aggregate estimated repair costs, a sign that deferred maintenance hits hardest where budgets are already thin.

In a 2025 U.S. News survey, 97% of respondents said future repair costs matter in buying decisions. More than half, 55%, said unexpected repairs caused significant stress, and 47% said they worried about a major surprise repair within the next year.

Harvard’s Joint Center for Housing Studies found high home prices and interest rates pushed U.S. home sales to their lowest level in 30 years, while insurance premiums and property taxes continued to rise. The U.S. Treasury’s Federal Insurance Office found in January 2025 that homeowners insurance was becoming more costly and harder to procure for millions of Americans. Harvard also found the remodeling market surged past $600 billion in the wake of the pandemic and remains about 50% above pre-pandemic levels.

A common benchmark is to budget 1% to 4% of a home’s value each year for maintenance, repairs and replacements. Kelly O’Grady recommends reducing contractor markups and avoiding rushed decisions, including getting multiple quotes, asking for detailed labor-and-material breakdowns, buying materials yourself when possible, bundling projects and scheduling HVAC service in the off-season when prices are lower.

For homeowners facing a tight budget, the first jobs to defer are the cosmetic ones that do not protect the structure or systems of the house. Heating and cooling service should move first, because it becomes more expensive when everyone else is calling at once.