Owning a home in the United States is becoming increasingly expensive beyond the monthly mortgage payment. Property taxes, homeowners insurance and maintenance now cost the typical homeowner about $1,380 a month, according to a new Zillow report. In Chicago, those additional costs reach an estimated $18,239 annually.
American homeowners are facing a growing financial burden as the costs of maintaining a property, paying insurance premiums and covering property taxes continue to strain household budgets.
A new analysis by real estate company Zillow and home-services platform Thumbtack found that these expenses totaled an average of $16,566 per year in 2026, nearly 32% higher than five years ago.
Although the pace of growth has slowed, the additional expenses remain substantial for households already managing mortgage payments, groceries, utilities, transportation and other everyday costs.
Maintenance Is the Biggest Expense
Home maintenance accounts for the largest share of the additional costs, according to the Zillow and Thumbtack analysis.
The estimated annual breakdown for a typical U.S. homeowner is:
- Home maintenance: $11,171 per year.
- Homeowners insurance: $2,266 per year.
- Property taxes: $3,129 per year.
Together, these expenses add up to approximately $1,380 per month, on top of mortgage payments.
Over the past five years, homeowners insurance premiums have increased by 54%, maintenance costs have risen 32%, and property taxes have climbed 19%.
However, the latest figures suggest that the pace of increases is easing. Total non-mortgage homeownership costs rose approximately 2.8% between 2025 and 2026, compared with a cumulative increase of 31.7% over five years.
Maintenance costs have shown the clearest slowdown, with annual growth falling to approximately 1% in 2026.
New York, San Francisco and Los Angeles Have the Highest Costs
The financial burden varies considerably depending on where homeowners live.
According to Zillow and Thumbtack, the highest annual costs among the major metropolitan areas analyzed were recorded in:
- New York: $25,111.
- San Francisco: $24,383.
- Los Angeles: $22,915.
- Boston: $22,096.
Even in Phoenix, the least expensive metropolitan area in the study, homeowners faced approximately $14,187 in annual maintenance, insurance and property-tax costs.
Insurance premiums have become a particularly significant concern in several markets, including Dallas, Tampa, Denver and Houston, where weather-related risks and other factors have contributed to higher costs.
The researchers found that insurance expenses have increased by at least 50% over five years in 19 of the 30 metropolitan areas studied.
Chicago Homeowners Pay More Than $18,000 Beyond Their Mortgage
For homeowners in the Chicago area, the additional costs are estimated at $18,239 per year, or about $1,520 per month.
Zillow’s analysis found that these costs increased 6.2% year over year in the Chicago metropolitan area.
That puts the region above the national average, adding significant expenses for homeowners even after their mortgage payments have been made.
The figures highlight why buying a home requires more than calculating the monthly mortgage. Homeowners must also budget for property taxes, insurance premiums, repairs and routine maintenance, expenses that can change over time and vary from one property to another.
Financial Pressure Is Affecting Households Nationwide
Rising homeownership costs are adding to wider concerns about Americans’ financial stability.
The Federal Reserve’s 2025 Survey of Consumer Finances, published in October 2026, found that nearly 20% of U.S. families had fallen behind on at least one loan payment during the preceding year. That was up from approximately 12% in 2022 and represented the highest level in the survey’s comparable data since 2010.
The findings point to increasing pressure on household finances, although the figures cover different types of borrowing and are not limited to mortgages.
A separate September 2026 survey by Goldman Sachs Asset Management found that approximately 61% of respondents earning less than $50,000 a year reported living paycheck to paycheck. Among those earning between $50,000 and $100,000, the figure was 34%.
For households already struggling to cover everyday expenses, an unexpected roof repair, insurance increase or property-tax bill can make it harder to save money or keep up with other financial commitments.
The American Dream Still Comes With Financial Benefits
Despite the rising costs, homeownership continues to represent a substantial source of wealth for many American households.
In August 2026, Intercontinental Exchange reported that total U.S. homeowner equity had reached a record $18 trillion during the second quarter, reflecting the accumulated value homeowners hold in their properties.
“Mortgage holder equity hitting $18 trillion is a remarkable milestone — one that reflects just how much wealth American homeowners have built,” said Andy Walden, head of mortgage and housing market research at Intercontinental Exchange.
However, home equity does not necessarily translate into cash that households can readily use to pay monthly bills. Accessing that wealth generally requires selling a property or borrowing against its value, which may introduce additional costs and financial risks.
The contrast illustrates the complicated position facing American homeowners: many have accumulated significant wealth through rising property values, while the ongoing expense of keeping those homes has become increasingly difficult to manage.
What Prospective Homeowners Should Consider
The latest findings underline the importance of calculating the full cost of homeownership before purchasing a property.
Beyond the mortgage payment, buyers should obtain insurance estimates, investigate local property taxes and account for routine maintenance as well as unexpected repairs.
Costs can differ considerably by location, home size, age and condition. A property with a lower purchase price may still prove expensive to maintain, while insurance and tax bills can change after a purchase.
Although the recent slowdown in annual cost growth offers some relief, the overall five-year increase remains significant.
For American families, the challenge is not simply buying a home, but ensuring that they can afford to keep it over the long term.
