Whether you are planning to buy a home or currently a homeowner you need to prepare your pocketbook for potential pain. Costs of owning and maintaining a home are on the rise, so if you are not already putting money aside in an emergency fund or another rainy day account...you may want to start. Case in point: we recently had to have a custom window replaced and the sticker shock was real. Local companies quoted between $5,200 and $12,000 to replace it. Needless to say, I was not prepared for that one, nor did I see it coming. While it wasn’t what I expected, it did prepare me to have a better budgeting mindset around our next item: a front door.
Owning a home comes with responsibilities that renters don’t face but it also offers long-term benefits that renting never will, including stability, equity, and the opportunity to build wealth over time. If you or someone you care about is considering the move from renting to homeownership in 2026, understanding the full cost of owning a home is a critical first step toward doing it confidently.
While mortgage payments are often the most visible expense, homeowners also need to plan for ongoing costs that are easy to overlook. The good news: these costs are not truly “hidden.” With the right information and preparation, they can be anticipated, budgeted for, and managed.
A 2025 study from Zillow and Thumbtack found that the average homeowner nationwide spends nearly $16,000 per year about $1,325 per month on non-mortgage homeownership expenses. These costs have increased roughly 4.7% year over year, reflecting broader inflation and rising insurance and maintenance costs. Planning ahead is what makes the difference between stress and stability.
Homeowners Insurance
Homeowners insurance is one of the largest non-mortgage expenses, and premiums have risen significantly up nearly 48% since early 2020. Increases vary widely by region, driven by weather risk, replacement costs, and claims history, and many experts expect upward pressure to continue.
How homeowners can plan:
- Shop insurance rates regularly and review coverage annually
- Consider higher deductibles where appropriate
- Bundle home and auto policies
- Ask about mitigation or safety discounts
Insurance is essential protection, but it doesn’t have to be a surprise expense when reviewed proactively.
Property Taxes
The average homeowner pays just over $3,000 per year in property taxes, and those costs rarely go down. In some states, including Michigan property taxes can reset or increase after a home sale, catching new buyers off guard.
Before buying, it’s smart to run the numbers. A mortgage lender can help estimate your expected tax obligation and structure escrow payments, so taxes are paid gradually throughout the year rather than all at once.
Home Maintenance
Every homeowner eventually learns the truth: it’s always something. From furnaces and roofs to appliances and plumbing, maintenance is part of owning a home and one of the most underestimated costs.
A common rule of thumb is to budget 1–2% of the home’s value annually for maintenance and repairs. Preventative maintenance such as servicing HVAC systems or addressing small issues early can significantly reduce the likelihood of costly emergencies.
HOA Fees
Homeowners association (HOA) fees don’t apply everywhere, but where they do, they can materially affect monthly housing costs. These fees may cover amenities, exterior maintenance, snow removal, or long-term repairs.
When considering a home with an HOA, buyers should look beyond the monthly fee and review what’s included, how well the association is funded, and whether special assessments are likely. Understanding the structure upfront avoids surprises later.
Planning Ahead Makes Homeownership Work
Unexpected expenses are stressful, but they don’t have to derail your finances. Setting aside money in a dedicated savings account for home expenses, sometimes called a home repair fund, can provide peace of mind and financial flexibility. Contributing regularly, even in small amounts, turns unpredictable costs into manageable ones.
Why Homeownership Still Makes Sense
Owning a home isn’t about avoiding costs, it’s about planning for them. Unlike rent, mortgage payments build equity. Unlike annual rent increases, fixed-rate mortgages provide long-term payment stability. And over time, homeownership remains one of the most effective ways for families to build net worth.
With realistic expectations, smart budgeting, and the right financial partner, homeownership continues to be a powerful and achievable goal even in a changing market.
If you have questions about what owning a home would truly cost in your local area, a mortgage professional can help you run the numbers and plan with confidence.
Featured in Macomb Now Magazine