That burst of excitement after finally closing on your own home could be met with some future unexpected financial disappointments.

An Oct. 22 report from Zillow and Thumbtack found that the typical hidden cost of homeownership across the United States stands at $16,566 this year—up 31.7 percent over the past five years.

Monthly fees for insurance, maintenance, and property taxes could tack on about $1,380 per month to the mortgage payment.

According to the report, insurance premiums increased the most, particularly in Houston, Phoenix, Denver, and Nashville, where homeowners are paying more for insurance than property taxes.

“Over the past five years, homeowners insurance premiums have jumped 54 percent, maintenance costs have risen 32 percent, and property taxes have gone up 19 percent,” the report stated. 

The report revealed that the average American pays about $2,266 per year in homeowners insurance, $3,129 for property taxes, and $11,171 for home maintenance.

It added that insurance premiums grew by only 0.3 percent between February and June, although they are still much higher than five years ago.

Metros experiencing the largest increases in insurance costs include Dallas, at 75 percent, Denver, 70 percent, and Houston, 69 percent.

Overall, homeowners in Miami pay the highest premiums at about $5,000 a year due to severe weather risks. 

An August report from LendingTree indicated that in addition to location, the majority of insurance firms consider details such as square footage, foundation type, roofing and siding materials, flooring, and heat source when preparing an annual homeowners insurance quote.

“Home insurance usually costs more for an older home, especially if it has worn or outdated roofing, wiring, or plumbing,” the report noted. 

Recent insurance claims can also add to the price of the premium.

Lending Tree suggests homeowners choose a higher deductible to lower premiums, but ensure that finances are available should a natural disaster strike.

While yearly maintenance costs skew much higher than insurance and taxes, the Zillow report noted that these increases have declined from nine percent in 2022 to just one percent in 2026.

In metros such as Seattle and Boston, maintenance costs can climb above $12,000 per year. 

Meanwhile, Los Angeles saw the biggest surge in these expenses, with a 27 percent annual increase.

The report attributed the rise in maintenance fees to factors such as wildfire-related recovery efforts, more demand for home services, and elevated labor costs.

Regionally, coastal areas are burdened with the highest overall hidden costs of homeownership at upwards of $25,000 in New York, more than $24,000 in San Francisco and over $22,000 in Los Angeles and Boston. 

Meanwhile, in Phoenix—the least costly metro analyzed—homeowners typically spent $14,187 per year in overall hidden costs.

The UW Credit Union in Madison, Wisconsin, noted on its website that many first-time home buyers are surprised by even routine hidden costs such as lawn care, leaf cleanup, gutter cleanouts, snow removal, HVAC maintenance, and exterminators.

Even small do-it-yourself projects such as painting or adding new light fixtures can also take an unexpected bite out of budgets, it noted.

Zillow Senior Economist Kara Ng recommends home shoppers estimate potential costs and understand what they can afford before making an offer on a property. 

“Many households focus so much on winning the home and underestimate what it costs to live in it,” Ng said in the report.

“Long after they receive the keys, insurance, taxes, and upkeep are recurring expenses to plan for.”