The Hidden Costs of Homeownership

Oct 29, 2025Building a Budget

Buying your first home can be exciting! You have cleared all the hurdles along the way—finding the right home, securing the right financing, and closing on the home. Now, it’s time to move in.

You know what your monthly payment will be, but that won’t be the only costs you incur while owning the home. There will be others that pop up along the way. Some may be routine, while some may come as a surprise.

Being prepared for these new costs can help you be better prepared

You Just Moved In

As you were purchasing your new home, there may be some projects you began planning before closing. You may be planning to change out the blinds, add a storage shed in the backyard, or upgrade the lighting fixtures. Each of these would have a cost associated with it depending on whether you chose to do the work yourself or hire a professional.

You will also want to consider lawn care. Will you take on the task yourself, or will you hire professionals to do the work. There will be a price to pay either way, whether it be purchasing and maintaining the equipment or paying a fee to a landscaping company.

Is your new home regulated by a Homeowners Association (HOA)? Whether you hate them or love them, you will need to factor in the costs of an HOA when purchasing your home. The HOA will have annual dues that need to be paid, and you may receive the occasional fine as well.

Renovations and Upgrades

We already mentioned some small renovations and upgrades you may want to tackle right away. However, there will be other, larger projects you may plan to take on as time goes on, including updates to a garage, building a shop, or remodeling a room.

These projects will often cost more than something like replacing lighting fixtures or blinds, and they will likely take more time to complete. You may know that these projects are on the horizon when you purchase your home, but many of these projects can cost between $10,000 and $40,000 or more.

In most cases, these projects will not be urgent, allowing you the time to plan carefully for them and set aside money to complete them. If you have owned your home for some time, you may even be able to use the equity you have built in your home to cover the costs.

Appliances & Maintenance

Every home requires ongoing maintenance to keep it in good shape. From servicing your HVAC system to cleaning gutters or resealing windows, these small tasks help you avoid bigger, more expensive repairs later. It’s often recommended to budget 1–3% of your home’s value annually for maintenance costs.

Appliances also have a lifespan, and when one reaches the end of it, replacement costs can add up quickly. A refrigerator, washing machine, or water heater can each cost hundreds—or even thousands—of dollars to replace. Having an emergency fund or a home warranty in place can provide a safety net when these expenses arise.

It’s also wise to set aside time, not just money, for upkeep. Preventative maintenance—like changing HVAC filters or checking for leaks—can go a long way in preserving your home’s value and keeping repair costs manageable.

Ongoing Costs of Ownership

Beyond maintenance, homeownership comes with several recurring expenses that can increase over time. Property taxes, homeowner’s insurance, and utilities are the most common examples. Property taxes often rise as property values increase, and insurance premiums can change based on coverage levels or local risks.

Utilities such as water, electricity, gas, and internet can fluctuate depending on your household size and the season. It’s also worth noting that larger homes usually mean higher costs for heating, cooling, and lighting.

You’ll also need to plan for less obvious expenses, like pest control, trash collection, or replacing worn-out flooring. While these costs may not occur monthly, they’re part of the ongoing financial picture of owning a home.

Having a home repair fund can really save the day when something unexpected happens. Even with regular maintenance, there will come a time when the water heater gives out, dishwasher stops working, or a leak appears after a storm. Setting aside a little each month, about one percent of your home’s value each year, can help you take care of those surprise repairs without the stress of dipping into your emergency fund or adding to your credit card balance.

Homeownership can be one of life’s most rewarding achievements—but it comes with ongoing costs that extend far beyond the down payment and mortgage. From maintenance to insurance to unexpected repairs, being prepared for these expenses helps ensure your investment remains a source of pride, not stress.

With careful budgeting and planning, you can enjoy the comfort, stability, and satisfaction that comes with owning a home—while confidently managing the hidden costs along the way.

Matt Ward

Marketing Specialist |

mward@hapo.org