Homeownership costs rose 26% over 5 years thanks to hidden costs

Typical monthly expenses for homeowners surged by more than a quarter in the five years through 2024, a comprehensive new report from the U.S. Census Bureau has revealed.

The median monthly ownership costs for U.S. homeowners with a mortgage jumped to $2,035 last year, according to new American Community Survey data released by the bureau on Thursday.

That was up nearly 7% from a year earlier in nominal dollars, and a 26% increase from 2019, when the typical monthly cost for mortgage holders was just $1,609.

Although home values surged over that period, the annual increase in 2024 was driven primarily by higher mortgage costs, insurance fees, and other hidden costs of homeownership.

“Rising insurance premiums and HOA/condo fees are the behind-the-scenes culprits for this increase outside of the basic increases to mortgage rates and home prices we’ve seen since 2019,” says Realtor.com® senior economist Joel Berner.

Indeed, typical monthly costs for homeowners without a mortgage have also jumped significantly, rising to $664 in 2024, up 5.5% from a year earlier and 31% from 2019.

Although those who own their home outright don’t have to fret over mortgage rates, they still have to contend with rising property taxes, insurance, and maintenance fees.

“It’s not always clear to prospective homebuyers to budget for these costs since they sit on top of the basic principal and interest payments on a home, but these costs are rising and are a significant portion of what homeowners pay every month,” says Berner.

States with the highest costs for homeowners

Among states, homeowners with a mortgage faced the highest median costs in California ($3,001), Hawaii ($2,937), New Jersey ($2,797), and Massachusetts ($2,755).

Washington, DC, frequently included in state data, had the highest median monthly costs in the nation at $3,181.

The states with the lowest monthly costs for homeowners with a mortgage were West Virginia ($1,272), Arkansas ($1,375), Mississippi ($1,448), and Kentucky ($1,453).

The new Census Bureau data also showed the rising impact of HOA and condo fees on homeowners, with nearly a quarter of homeowners paying monthly dues last year.

Overall, the monthly median condo or HOA fee in 2024 was $135. New York had the highest median monthly fee at $739.

States with the highest share of homeowners who reported paying condo or HOA fees were Nevada (51%), Florida (44%), and Arizona (45%).

“As extreme weather events continue to strike and homeowners associations face rising costs of the services they provide, these costs get passed on to homeowners and further stretch their budgets thin,” says Berner.

Number of homes without a mortgage climbs

More than half of owned homes (59.7%) had a monthly mortgage payment in 2024. But the number of homes owned free and clear, with no monthly mortgage payment, climbed.

There were about 900,000 more owned homes paid off in 2024 (about 35 million total) than in 2023 (34.1 million total).

The states with the largest annual increases in the share of free-and-clear homes were Vermont (8.9%) and New Mexico (8.7%).