A new analysis shows homeowners now face about $1,380 a month in non-mortgage costs, straining family budgets nationwide.
Story Highlights
- Zillow reports $16,566 a year in taxes, insurance, and maintenance, about $1,380 per month
- Maintenance is the largest share; insurance and property taxes also weigh heavily
- Federal housing guidance confirms these costs sit beyond principal and interest
- Other data show insurance and tax pressures rising across many markets
Report Finds $16,566 In Annual Non-Mortgage Costs
Zillow and Thumbtack report that the typical homeowner now pays $16,566 each year for expenses beyond the mortgage, which equals about $1,380 per month. The estimate includes $11,171 for maintenance, $3,129 for property taxes, and $2,266 for homeowners insurance. The report highlights that these items hit owners whether rates fall or rise, and they scale with home value and risk. The figure reflects a national analysis and does not apply evenly to every community.
The Zillow media release adds that these hidden costs have climbed in recent years, led by insurance and steady maintenance needs. The release points to multi-year increases in premiums, ongoing wear and tear, and tax changes that vary by state and county. While the total is an average, its size shows why many families feel squeezed even after making the mortgage payment each month. It also helps explain why ownership affordability remains under pressure.
What “Beyond The Mortgage” Really Means For Families
Freddie Mac, the government-sponsored mortgage company, explains that homeowners must budget for more than principal and interest. Typical add-ons include private mortgage insurance, property taxes, homeowners insurance, and homeowners-association dues. Lenders often collect taxes and insurance through escrow, so many owners pay these costs inside their monthly bill. Even so, they are separate from principal and interest and can shift a family’s budget fast when rates or assessments rise.
Budgeting rules of thumb also align with the report’s large maintenance share. Consumer guidance often suggests saving one to two percent of a home’s value each year for upkeep. On a $400,000 home, that equals about $333 to $667 per month. Older homes, harsh weather, and complex systems can push costs higher. This helps show why maintenance sits at the top of the non-mortgage stack and why families need margin for surprise repairs and replacements.
Insurance And Taxes Are Rising In Many Places
Separate reporting this year finds average homeowners insurance near $3,336 and property taxes around $3,580, with premiums up about 12 percent in 2025 and tax bills up about 3.7 percent for single-family homes. These costs vary widely by state and county, but the direction points up for many owners. That rise lands on top of routine upkeep, creating a heavier load for families trying to save, invest, and cover daily needs.
The Minneapolis Federal Reserve has also shown that non-mortgage owner costs outpaced inflation recently, even as principal and interest ticked down. That pattern means the “extras” have become the main squeeze for many homeowners. When insurance carriers raise rates or when local tax assessments increase, owners feel it quickly. Those changes can be hard to plan for and often do not match income growth, which strains household finances and savings goals.
How To Read A National Average Without Getting Burned
The $1,380 monthly figure offers a useful benchmark, but it is not a bill every owner will see. Location, home age, value, coverage choices, and association dues can swing costs up or down. Some families also pay taxes and insurance through escrow, which can blur the line between the mortgage “payment” and true principal-and-interest costs. Homeowners should review escrow statements and renewal notices, then build a plan that fits their local market and their home’s condition.
For conservative households focused on living within their means, this report is a clear call to tighten the home budget. Families can price higher deductibles, bundle policies, and get competing insurance quotes each renewal. They can appeal tax assessments when values look off. They can set a steady maintenance reserve and tackle small fixes early to avoid big repairs later. Personal responsibility and careful planning can blunt the bite of costs that Washington or state capitols often push higher through policy choices.
Why This Matters For Policy And Pocketbooks
Rising non-mortgage costs reduce the benefit of lower interest rates and can keep young families from buying. High insurance and higher taxes also hurt retirees on fixed incomes who worked decades to own a home free and clear. Policymakers who want broad homeownership must rein in property tax growth and stop layering fees onto families. Transparent assessments, open insurance markets, and less red tape would help owners protect what they worked so hard to build.
Homeownership is still the backbone of family wealth in America. The new data explain why many feel like they are running in place. A smart response starts at home with tight budgets and routine upkeep, and it extends to local boards, statehouses, and Congress. Leaders should protect homeowners from hidden hikes that erode savings and the American dream. That means accountability on taxes, fair insurance markets, and policies that reward work, saving, and strong families.
Sources:
facebook.com, zillow.mediaroom.com, zillow.com, inman.com, kiplinger.com, brookings.edu
