‘Extra’ homeownership costs top $23,000 a year—and they might go up

Many buyers think of a fixed-rate mortgage as a way of locking in housing costs. But additional, ongoing housing expenses — including utilities, property taxes, insurance, maintenance and repairs — can continue rising long after a mortgage payment is set.

The average U.S. homeowner spends $23,686 annually on expenses beyond their mortgage, according to a March 2026 survey and analysis from Clever Real Estate. When average HOA fees are included, those costs climb to nearly $28,000 a year, more than the average annual mortgage payment of roughly $25,000, according to the report.

A separate May 2026 survey of 1,000 homeowners commissioned by Jobber found that 60% of recent homebuyers said ownership had been more expensive than expected.

“The biggest mistake is taking the ‘fixed’ part in a fixed mortgage literally,” says Zachary Mineur, a certified financial planner and chief investment officer at Independence Square Advisors. “Property taxes and insurance are very much not fixed and often make up more than 20% of the total payment.”

The report breaks down average annual costs as follows:

• Utilities: $7,679
• Maintenance: $5,162
• HOA fees: $4,196
• Renovations: $3,929
• Property taxes: $3,580
• Homeowners insurance: $3,336

Utilities, property taxes and insurance estimates were based on federal government and utility industry data, while HOA, maintenance and renovation figures reflected spending self-reported by 1,000 homeowners surveyed by Clever in March 2026.

While not every homeowner incurs all of these costs every year, many of the expenses tied to homeownership can continue rising long after a mortgage payment is set.

Some of the biggest non-mortgage housing costs have been on the rise of late. 

Household energy costs rose 6.5% in April from a year earlier, according to the Consumer Price Index, well above the overall inflation rate of 3.8% for all goods and services tracked by CPI.

Homeowners insurance costs have also climbed sharply, driven in part by rising rebuilding costs and growing climate-related risks such as hurricanes, floods and wildfires. The average annual cost of home insurance rose 12% in 2025 and is projected to rise another 4% in 2026, according to Insurify. 

Property taxes also tend to rise over time. The average property tax bill on a single-family home increased 3.7% in 2025, according to real estate analytics firm ATTOM. Both property taxes and insurance costs are tied in part to home values, which have historically trended upward.

“The operating cost of the home is still exposed to inflation, local tax policy, insurance markets, labor costs, material costs, energy prices, and climate risk,” says Thomas Ravert, a certified financial planner in New York. “That is why buyers should not confuse a fixed mortgage payment with a fixed housing budget,” he says.

Buyers who stretch their budget based mainly on the monthly mortgage payment can leave themselves financially exposed after move-in, says Jeffrey Judge, a CFP in Maryland.

He recalls one client who stretched to buy near the top of their mortgage approval range. While the mortgage payment fit the budget, an $8,400 property tax bill, a homeowners insurance premium that jumped 22% at renewal and a broken water heater just eight months after move-in severely strained the household finances.

They got by, but “just barely,” Judge says.

If you’re considering buying a home, Ravert says it’s important to have a maintenance and repair cushion in place before making a purchase.

He recommends setting aside roughly 1% to 3% of a home’s value each year for maintenance and repairs, with older homes and higher-risk climates typically needing the higher end of the range.

“If a buyer uses every available dollar for the down payment and closing costs, they may technically win the house but lose financial flexibility,” Ravert says. “That is where buyer’s remorse often begins.”

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