Do you own a home? You may have to pay an extra $25,000 this year, and here’s where that money goes

Most people blame high mortgage rates and rising real estate prices for making it difficult for Americans to afford housing, but they don’t take into account other rising housing costs.

A sharp increase in non-mortgage expenses, such as insurance, utilities and property taxes, may put pressure on housing affordability, a survey shows. The typical American homeowner could spend an average of $24,529 per year or $2,044 per month this year on home expenses plus the mortgage, according to data from Real Estate Witch. This is a big jump from $17,958 in household expenses last year. It’s roughly equal to the $26,508 the typical homeowner spends on their mortgage each year.

Expenses can be higher for homeowners association (HOA) members, adding another $3,077 in annual costs. Additionally, homeowners must factor in about 6.9 hours per week for time associated with repairs and maintenance.

Homeownership costs in 2025 rise to $24,529 per year.

High costs are causing Americans to question homeownership

In fact, the extra expense is one of the reasons 69% of homeowners say they regret their homes and the costs that come with them, the survey showed.

Four in five homebuyers said the additional expenses were more than they expected, and the same share said they would prefer a more expensive home with lower maintenance costs. Some common maintenance costs included replacing appliances, painting, plumbing, and roof repair.

Nearly half said they did not properly consider maintenance costs and would have approached the home buying process differently if they had better information. More than a third of survey respondents said they believed the previous homeowner had not been honest about costs and cutting back.

Unexpected costs have dampened the homeownership experience for some, with 44% saying renting a property is easier than owning one, and about 15% saying they are considering returning to renting.