20 Cities Where You Pay More Hidden Homeownership Costs

Purchasing a home in America is already a rather expensive endeavor, and it’s only getting pricier because of hidden costs. That’s per a new joint study from Zillow and Thumbtack, which recently found that hidden homeownership fees are growing faster than income levels, making the purchase of a home even more difficult.

The Zillow/Thumbtack study found that the annual hidden costs of homeownership in America are, on average, $15,979 — that’s $10,946 spent on maintenance, $2,003 on homeowner’s insurance and $3,030 on property taxes. Together, these three extra charges have increased by 4.7% over the past year; meanwhile, household income levels have increased by just 3.8% during the same time frame.

While homeowner insurance remains the cheapest of the three hidden costs, insurance premiums themselves have risen 48% over the last half-decade, at a rate that is “nearly twice as fast as homeowner incomes,” said Zillow senior economist Kara Ng. “Buyers who are already facing affordability challenges in today’s market need to understand and budget for these less obvious expenses when calculating how much home they can truly afford.”

Additionally, keep in mind that the figure of $15,979 is only the nationwide average for hidden homeowner fees; there are a number of cities in which hidden homeowner costs rise well above $16,000 annually. The average home purchase in New York City, for instance, comes with $24,381 in hidden costs — $10,838 in property taxes, $11,576 in maintenance costs and $1,967 in estimated insurance fees.

Moreover, California has a number of cities (Los Angeles, San Francisco, San Diego) with hidden homeowner costs well over $16,000. In Washington, D.C., homeownership comes with roughly $19,321 in estimated additional costs.

To provide a sense of where it costs more to be a homeowner, GOBankingRates culled from Zillow and Thumbtack’s study the 20 cities where you pay more in hidden homeownership costs than the average American. Homeownership in each of these cities comes with hidden yearly costs of $16,000 or more and are ranked in order from highest to lowest.

• Total hidden costs of homeownership: $24,381
• Estimated property tax: $10,838
• Estimated insurance: $1,967
• Average cost of maintenance: $11,576

• Total hidden costs of homeownership: $22,781
• Estimated property tax: $6,317
• Estimated insurance: $1,992
• Average cost of maintenance: $11,012

• Total hidden costs of homeownership: $21,320
• Estimated property tax: $5,327
• Estimated insurance: $1,794
• Average cost of maintenance: $10,254

• Total hidden costs of homeownership: $21,175
• Estimated property tax: $4,701
• Estimated insurance: $2,648
• Average cost of maintenance: $9,220

• Total hidden costs of homeownership: $19,959
• Estimated property tax: $2,883
• Estimated insurance: $2,998
• Average cost of maintenance: $9,777

• Total hidden costs of homeownership: $19,321
• Estimated property tax: $5,302
• Estimated insurance: $1,708
• Average cost of maintenance: $10,678

• Total hidden costs of homeownership: $19,088
• Estimated property tax: $4,903
• Estimated insurance: $1,700
• Average cost of maintenance: $11,108

• Total hidden costs of homeownership: $18,286
• Estimated property tax: $5,091
• Estimated insurance: $4,607
• Average cost of maintenance: $10,261

• Total hidden costs of homeownership: $18,257
• Estimated property tax: $3,504
• Estimated insurance: $2,167
• Average cost of maintenance: $11,878

• Total hidden costs of homeownership: $17,711
• Estimated property tax: $7,004
• Estimated insurance: $2,245
• Average cost of maintenance: $12,071

• Total hidden costs of homeownership: $17,688
• Estimated property tax: $1,539
• Estimated insurance: $1,552
• Average cost of maintenance: $10,3282

• Total hidden costs of homeownership: $17,653
• Estimated property tax: $8,807
• Estimated insurance: $2,289
• Average cost of maintenance: $11,685

• Total hidden costs of homeownership: $17,549
• Estimated property tax: $2,988
• Estimated insurance: $1,569
• Average cost of maintenance: $11,007

• Total hidden costs of homeownership: $17,375
• Estimated property tax: $6,490
• Estimated insurance: $1,829
• Average cost of maintenance: $12,856

• Total hidden costs of homeownership: $16,934
• Estimated property tax: $4,380
• Estimated insurance: $2,198
• Average cost of maintenance: $11,679

• Total hidden costs of homeownership: $16,569
• Estimated property tax: $5,892
• Estimated insurance: $2,069
• Average cost of maintenance: $11,127

• Total hidden costs of homeownership: $16,276
• Estimated property tax: $3,359
• Estimated insurance: $3,108
• Average cost of maintenance: $10,467

• Total hidden costs of homeownership: $16,270
• Estimated property tax: $3,130
• Estimated insurance: $2,673
• Average cost of maintenance: $10,463

• Total hidden costs of homeownership: $16,266
• Estimated property tax: $3,569
• Estimated insurance: $1,724
• Average cost of maintenance: $10,941

• Total hidden costs of homeownership: $16,234
• Estimated property tax: $2,914
• Estimated insurance: $2,184
• Average cost of maintenance: $10,192