As housing affordability and cost-of-living pressures erode consumer confidence in the broader economy, rising expenses of ongoing homeownership that have skyrocketed in recent years are making homeowners question their decision to buy a home in the first place.
A survey of 1,000 homeowners conducted by Real Estate Witch from November 27-30, 2024, shows the average American homeowner now spends an average of $24,529 per year — that’s $2,044 a month — on home repairs and maintenance costs on top of their monthly mortgage payment, an increase from $17,958 in 2024.
These expenses can total an astounding $735,870, nearly matching the cost of an average 30-year mortgage itself.
The most common yearly expenses for homeowners include utilities ($7,319), standard maintenance ($6,087), renovations ($5,762), property taxes ($3,057), and homeowners insurance ($2,304). Additionally, homeowners belonging to a Homeowners Association (HOA) will pay an average of $3,077 in yearly fees, bringing their total homeownership cost to approximately $27,606 per year.
Beyond predictable expenses, unexpected costs often arise, creating financial strain for many homeowners.
A reported 46% of homeowners surveyed claimed there was no budget for emergency repairs should they be necessary, and 69% of respondents had “regrets” about their home and the associated costs.
The cost of property insurance is through the roof, due in large part to a recent uptick in natural disasters. Many homeowners report being unaware of the true cost of escrow payments when they first purchased their homes, with a significant number wrongly believing that a fixed-rate mortgage meant their monthly payments would remain unchanged.
This lack of financial literacy regarding homeownership costs could pose challenges for the future, as an increasing number of homeowners are beginning to view renting as a simpler and potentially more viable option.
Although homeownership is still viewed as an “integral part” of achieving the American dream, 44% of those surveyed stated that renting was all-around easier, and 1 in 7 respondents admitted they have considered returning to renting due to the unpredictable nature of homeownership expenses. And with the cost to rent starting to stabilize, they might be onto something.
