Dagen McDowell warns that the new cost-of-living adjustment will accelerate the Social Security budget crisis. It details how retirees will face a looming 22% reduction in their benefits by 2032 due to the collapse of the worker-to-retiree ratio.
The hidden costs of homeownership are on the rise and have increased by nearly a third over the past five years, as expenses like insurance, maintenance and property taxes eat into homeowners’ budgets.
A new report from Zillow and Thumbtack found that these costs add up to about $16,566 per year, which equates to about $1,380 per month on top of a mortgage payment.
Of the total cost of $16,566, the typical American homeowner must pay approximately $11,171 in annual maintenance, $2,266 in homeowner’s insurance, and $3,129 in property taxes.
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“Many households focus so much on getting a home and underestimate what it costs to live there,” said Kara Ng, Zillow senior economist.
“Long after you get the keys, insurance, taxes and maintenance are recurring expenses to plan for. Since these homeownership costs vary wildly by market, homebuyers should do some math and understand what they can actually afford before making an offer.
The hidden costs of homeownership have increased significantly over the past five years, according to an analysis by Zillow and Thumbtack. (Tammy Ljungblad/The Kansas City Star/Tribune News Service via Getty Images)
Hidden costs have increased in recent years, with the largest increase seen in home insurance premiums, which have increased by 54% over the past five years.
Maintenance costs have had the second fastest growth rate and have increased 32% over the past five years, while property taxes have increased 19% over that time.
Overall ownership costs increased 3% over the past year, but 32% over the past five years.
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Home maintenance costs were the largest category of hidden homeownership costs nationwide. (Kirk Sides/Houston Chronicle/Getty Images)
Zillow and Thumbtack’s analysis found that maintenance costs showed the sharpest slowdown, as their annual increase eased in each of the past five years, from 9% in 2022 to 1% in 2026.
Insurance follows a similar trend, with premiums increasing by just 0.3% between February and June 2026.
“The slowing growth in maintenance costs is good news for homeowners who manage many competing expenses,” said Kendra Sinclair, residential trends expert at Thumbtack.
“Scheduling regular maintenance throughout the year can help avoid larger repair bills and protect your savings in the event of the unexpected. »
AFFORDABLE HOUSING IS STILL A REALITY IN THESE MAJOR U.S. CITIES
Homeowners insurance premiums increased by at least 50% over five years in 19 of the 30 metropolitan areas analyzed. (Mike Blake/Reuters)
The largest increases in the hidden costs of homeownership have occurred in a handful of metropolitan areas. Insurance premiums increased by at least 50% over five years in 19 of the 30 metros analyzed, with the largest increases in Dallas (75%), Tampa (71%), Denver (70%) and Houston (69%).
These increases in insurance premiums may be due in part to extreme weather conditions, including hail, tornadoes and damaging winds.
Maintenance represented the nation’s largest hidden cost, covering about two-thirds of the national total, and exceeded $12,000 in six major metropolitan areas, including Seattle ($12,594) and Boston ($12,486).
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The largest increase in maintenance spending was in Los Angeles, with spending up 27% year-over-year, which the analysis attributes to a mix of regional factors such as wildfire recovery efforts, increased demand for home services and persistently high labor costs.
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