#United States #St. Louis #Real Estate Witch #Homeownership Costs #Mortgage Expenses

The Financial Burden of Homeownership in 2025

As of January 2025, American homeowners are grappling with staggering expenses beyond their mortgage payments. Research from Real Estate Witch indicates that the typical homeowner is shelling out an average of $24,529 per year for various home expenses. This translates to an overwhelming $2,044 monthly, marking a sharp increase from $17,958 recorded in 2024. Over a standard 30-year mortgage, these additional costs tally up to an eye-watering $735,870.

Breakdown of Homeownership Costs

The increase in annual expenses encompasses several essential home-related costs:

• - Utilities: $7,319
• - Maintenance: $6,087
• - Renovations: $5,762
• - Property Taxes: $3,057
• - Homeowners Insurance: $2,304

Notably, if homeowners live in communities governed by a homeowners association (HOA), they incur an extra $3,077 annually in fees, pushing their total yearly expenditure to approximately $27,606.

Stress Factors for Homeowners

The financial strain does not stop at the numbers. A concerning 51% of homeowners report feeling stressed due to rising insurance costs, with 13% fearing potential loss of coverage. Furthermore, 46% feel that their property taxes do not correspond appropriately with their home's market value.

With 81% of homeowners reporting that their expenses were higher than they initially anticipated, many are left regretting their purchase decisions. A significant 69% express dissatisfaction regarding the costs associated with their properties. Interestingly, nearly half (46%) confess they did not accurately estimate the expenses related to necessary repairs and improvements prior to buying their homes.

Budgeting and Financial Management

The data reveals a troubling trend: 46% of homeowners admit they do not actively budget for unforeseen repairs. When financial emergencies arise, 59% say they would struggle to cover a $5,000 repair bill without resorting to credit card debt.

Upon reflection, a compelling 81% of homeowners believe they would prefer purchasing a more expensive home that would incur lower maintenance costs. Furthermore, 48% admit they would have approached the buying process differently if they had been aware of the actual costs associated with homeownership from the start.

Renting vs. Owning

In light of these challenges, it is not surprising that some homeowners are questioning whether ownership is worth the financial burden. Approximately 44% of respondents find renting to be an easier option, while 15% have considered returning to renting altogether.

This dilemma highlights a growing concern in America regarding the sustainability of homeownership, particularly for those navigating these escalating costs. As many homeowners reassess their financial strategies, it is clear that understanding the real costs of maintaining a home is essential not only for budgeting purposes but also for their long-term financial well-being.

To read the full report on the essential costs of homeownership in 2025, visit Real Estate Witch.

About Real Estate Witch

Real Estate Witch, an online arm of Clever Real Estate, aims to guide home buyers and sellers by providing expert advice while connecting them with top-rated real estate agents at a competitive rate. With a vast reach of over 10 million readers annually, Clever has successfully facilitated real estate sales exceeding $12.1 billion since its inception in 2017. Its services have garnered a stellar rating of 5.0 stars on Trustpilot from more than 3,300 customer reviews.

For more inquiries or to schedule an interview, please reach out to Alyssa Evans at [email protected].