The Sneaky Part Of Homeownership That's Making Affordability Unattainable

Perhaps the most fundamental pillar of the American dream is homeownership. At his 1944 State of the Union address, President Franklin Delano Roosevelt declared that every family has the right to a decent home. By that point, he had established agencies like the Fair Housing Administration and the Home Owners Loan Corporation, which refinanced mortgages and brought down prices. But Roosevelt's vision for America has eroded over the past 80 years, and single-family homeownership has become little more than a dream for tens of millions of Americans.

Adjusted for inflation, home prices rose by 65% between 2000 and 2020, according to the U.S. Department of the Treasury, and the median first-time homebuyer is now 40 years old, reports the National Association of Realtors. High mortgages are a clear hurdle to homeownership, but many prospective homebuyers are now being barred by additional expenses — namely insurance, taxes, and maintenance.

Factors such as high interest rates, low inventory, a shortage of public housing, and the scourge of investment from private equity firms all play a role in reducing affordability. But all of these factors directly influence home values, and therefore mortgages. Most homebuyers are aware of the property taxes they'll owe at the end of the year, and those who are savvy will take insurance into account before they make their down payment. These expenses can sneak up on you, but they also aren't really hidden. However, maintenance costs have a tendency to fly under the radar and are especially unpredictable for first-time homeowners. That's why it's important to do some research before buying your home, because you don't want the purchase to consume your paycheck.

It's crucial to gather as much information as possible before buying a home. After all, it's the largest and most consequential purchase most of us ever make. A typical rule of thumb is that you should spend only as much as 30% of your gross income on housing. But if you take only your mortgage into account, you may end up biting off more than you can chew. In 2025, Zillow and Thumbtack have found that the average homeowner spends $15,979 a year on their home in addition to their mortgage. That number may appear startling, but it is more understandable (no less infuriating, however) when you dig into the details. Each year, the average homeowner spends $3,030 on property tax, $2,003 on homeowner's insurance, and $10,946 on maintenance.

There are a few ways to reduce these expenses if you're persistent and clever. Short of moving to an area with a lower likelihood of natural disasters, you can reduce your homeowner's insurance by raising your deductible, installing a security system, and bundling your home and auto insurance. You can also make modifications to your home that will protect it from the elements. For instance, you can retrofit your home's foundation if you live in a seismically active area. 

If you work from home, you may be able to deduct the square footage of your home office from your property taxes. To reduce your maintenance costs, try to buy a home with a relatively new roof so you won't have to replace it for a couple of decades. Also, consider using the weekends to mow your lawn rather than hiring a service.