Homeownership Costs Are Rising. Here’s What You Can Do.

Having a predictable monthly payment is one of the key benefits of owning a home. For decades, the 30-year fixed mortgage has been the pillar of payment stability — and it continues to be. But your mortgage payment isn’t the whole story.

The non-mortgage costs of homeownership — insurance, taxes, utilities, and maintenance — have risen dramatically in recent years. In 2025 alone, non-mortgage costs rose 4.7%, outpacing household income growth of 3.8%.[1]

What’s Driving Up Homeownership Costs?

Home insurance, property taxes, and routine maintenance now cost the average homeowner $15,979 per year.[1] That’s roughly $1,331 per month. And homeowners are feeling the weight of this new reality:

These costs are climbing due to a variety of factors.

1. Climate risk. More frequent extreme weather events such as floods, wildfires, and heavy rainfall have led to higher disaster-related losses.[3] Those losses are translating into higher costs for homeowners: Home insurance payments have surged 70% since December 2019.[4]

2. Material and energy costs. The cost of common home repairs increased substantially from 2022 to 2024.[5] In addition, factors like rising energy demand and grid upgrades have pushed utility prices up faster than inflation.[6,7] In short, it’s more expensive to run and maintain a home.

3. Rising property values. Higher home values mean higher tax assessments, leading to higher property tax bills. This adds yet another layer to the cost of owning a home.

 

5 Ways to Protect Your Finances

While some of these costs are beyond your control, you’re not powerless. By taking a few proactive steps, you can reduce the impact on your budget.

1. Review your homeowners insurance policy. Shop around for multiple quotes, but don’t stop there. Ask about discounts for bundling home and auto policies, installing security systems, or making storm-resistant upgrades. Look at your policy details to identify levers you can pull to reduce costs, such as raising your deductible. Just be sure you can comfortably cover the higher out-of-pocket cost if you file a claim.

2. Appeal your property tax assessment. Your tax bill is based on assessed value, not market value alone. If your assessment seems too high, you can appeal it. Many homeowners successfully reduce their tax burden through appeals.

3. Build a home maintenance fund. Don’t let maintenance and repairs sneak up on you. A good rule of thumb is to set aside between 1% and 4% of your home’s value each year. On a $300,000 home, that’s $250 to $1,000 per month. If that feels too steep, start with whatever amount you can afford. Automate this just as you would any monthly bill by setting up a recurring transfer into a dedicated savings account.

4. Consider a HELOC as a financial safety net. Your home maintenance fund may not be enough to cover a major repair, like a new roof or HVAC failure. Instead of relying on high-interest credit cards, you can tap your home equity when big expenses arise. A home equity line of credit (HELOC) provides flexible access to funds and can be a smart backup for large, unexpected repairs.

5. Re-evaluate whether your home still fits your needs. If the above strategies aren’t enough to rein in your non-mortgage costs, it may be time evaluate whether your home still fits your needs. Downsizing or relocating to a lower-risk area may help you reduce insurance, taxes, and maintenance costs.

While you can’t control every cost, with thoughtful planning and smart financial choices, you can take meaningful steps to protect your finances and feel more confident when home expenses climb. We can help! Come in and speak with a personal banker about money saving solutions or speak with a Mortgage Specialist about HELOC and refinancing options. Give us a call at 1-888-254-9500 today!





Sources:

1. Zillow Group, “Hidden costs of homeownership reach $16K per year,” November 13, 2025.

2. Kin’s 2026 Homeownership Trends Report, January 5, 2026.

3. U.S. Department of the Treasury, “U.S. Department of the Treasury Report: Homeowners Insurance Costs Rising, Availability Declining as Climate-Related Events Take Their Toll,” January 16, 2025.

4. ICE Mortgage Monitor, September 2025.

5. Federal Reserve Bank of Philadelphia, “Home Repair Costs 2025: Updated Estimates and New Measures of Cooling Needs,” December 2025.

6. Grist, “What’s behind your eye-popping power bill? We broke it down, region by region,” February 18, 2026.

7. eia.gov, “U.S. electricity prices continue steady increase,” May 14, 2025.

 
This article was repurposed with permission from Ellie Mae, Inc. and ICE Mortgage Technology in the June 2026 Vibrant Living Newsletter.