The True Cost of Homeownership Index: Annual Hidden Expenses Across America's 50 Largest Cities

Buying a home is often considered the ultimate milestone of financial stability. But most homeowners dramatically underestimate the true cost of ownership.

Beyond the monthly mortgage payment, property taxes, insurance, utilities, and ongoing maintenance can add tens of thousands of dollars to annual expenses. These hidden costs vary wildly by location, and in some cities, they can exceed what many families pay in rent.

To uncover the full financial burden of homeownership across America's largest cities, PropFusion analyzed the total annual costs in the 50 most populous U.S. cities.

The study combined median home values from Zillow with property tax rates from the Lincoln Institute, homeowners insurance data from Nerdwallet, and utility costs from Doxo Insights. Each city was ranked by total annual cost, accounting for property taxes, insurance, utilities, energy, and the standard 2% home maintenance rule.

Key Findings

• The median homeowner in America's largest cities pays $20,403 annually in hidden costs beyond their mortgage, including property taxes, insurance, utilities, and maintenance.
• San Jose, California leads the nation with the highest annual homeownership costs at $54,562, driven by sky-high property values and maintenance expenses.
• Philadelphia, Pennsylvania offers the most affordable homeownership at $14,284 annually, making it 74% less expensive than San Jose.
• California cities dominate the top tier, claiming 6 of the 10 most expensive cities for homeowners, while Midwest cities like Detroit, Indianapolis, and Columbus rank among the most affordable.
• Home maintenance costs represent the single largest hidden expense for homeowners at a median of $7,785 annually, accounting for 37.71% of all hidden costs, more than property taxes, insurance, and utilities individually.

The Five Cities With the Highest Hidden Homeownership Costs

San Jose, California - $54,562 per year

San Jose homeowners carry the nation's heaviest burden of hidden costs at $53,562 annually, more than double the national median of $20,403. Home maintenance represents the single largest expense, accounting for more than half of all hidden costs due to sky-high property values. In a surprising twist, San Jose boasts the lowest homeowners insurance in the country at just $1,090 per year, less than one-sixth of what Oklahoma City homeowners pay despite having homes worth nearly seven times more.

San Francisco, California - $49,415 per year

San Francisco homeowners face annual hidden costs of $49,415, with utility and energy expenses ranking as the fourth highest in the nation. The combination of older housing stock and California's energy prices drives these costs significantly above the national average, adding substantial financial burden beyond property taxes and insurance premiums.

San Diego, California - $40,888 per year

San Diego claims the third spot among America's most expensive cities for homeowners, with annual hidden costs reaching $40,888. Property taxes and maintenance expenses dominate the cost structure, driven by median home values approaching the million-dollar mark in this coastal Southern California market.

Los Angeles, California - $37,318 per year

Los Angeles homeowners spend $37,318 annually on hidden costs, though the city offers a relative bargain in utility expenses compared to other expensive California markets. Despite having the fourth-highest median home values in the nation, Los Angeles maintains more moderate energy and utility costs than its Northern California counterparts.

New York City, New York - $34,802 per year

New York City stands as the only non-California city in the top five, with homeowners spending $34,802 per year on hidden costs. Insurance premiums reach the highest levels among the top five cities, reflecting the unique risks and density challenges of America's largest metropolitan area.