Hidden Costs, Buyer's Remorse: The True Cost of Homeownership

For many Americans, homeownership conjures thoughts of comfort and financial security.

But that optimism can evaporate if a first-time home buyer isn’t prepared for unexpected costs. Among 1,000 homeowners recently surveyed by Clever Real Estate in its “Hidden Costs, Buyer’s Remorse: The True Cost of Homeownership” report, 52% admit the true cost of owning a home surprised them.

Not only has the upfront cost of buying a house spiked in the last year amid the COVID-19 pandemic—but Clever’s research also shows the average homeowner shells out an additional $15,405 each year on top of their mortgage.

According to the report, on average, homeowners spend:

$4,829 on utilities
$3,300 on home improvements
$3,018 on maintenance and repairs
$2,578 on property taxes
$1,680 on homeowner’s insurance

Altogether, these costs have increased by over $2,000 since the company last surveyed homeowners in 2019, Clever reported.

Key findings:

The average cost of owning a home is roughly $15,405 every year for expenses such as maintenance and other hidden costs.
More than half of homeowners (52%) say the true cost of owning a house took them by surprise.
Most homeowners (60%) have experienced buyer’s remorse, including one in four homeowners who say they often feel buyer’s remorse.
The share of homeowners spending over 40% of their household income on housing has nearly doubled since before the COVID-19 pandemic (16% vs. 29%).
More than 70% of homeowners regret at least one aspect of their home purchase.
- Among those homeowners, the most common regrets are that their house requires too much maintenance (40%) or is too small/lacks features (32%) or they were unprepared for hidden costs (30%).
One in eight homeowners say the benefits of owning aren’t worth the hassle.
On average, homeowners spend 19 hours a month on home maintenance, repairs and improvements. That adds up to nearly 230 hours each year.
One-third of homeowners spent more than $5,000 on maintenance in 2021.
- Millennials are 3x more likely to spend at least $5,000 on home maintenance than baby boomers.
Homeowners spend about $2,000 more than renters on utilities annually.
New Jersey has the highest property taxes, while Alabama has the lowest: The median homeowner in New Jersey pays 14x more in property taxes each year than the median homeowner in Alabama.