Z
illow’s latest partnership with Thumbtack exposes a growing reality for prospective homeowners: the true cost of owning a house is far higher than the headline mortgage. The report shows that, on average, a homeowner spends $15,679 a year on insurance, maintenance and property taxes—an amount that has risen 4.7% annually, outpacing both inflation and household income growth of 3.8%. These hidden expenses mean that even buyers who can afford a down payment may find themselves unable to keep their homes.

    The findings echo the 2008 financial crisis, when federal policies that promoted “affordable housing” for subprime borrowers led to a wave of defaults. Easy credit, especially through the Federal Housing Administration’s 3.5% down‑payment loans, pulled many into ownership only to leave them unable to cover the full cost of ownership. Today, the Mortgage Bankers Association reports a delinquency rate of 3.99% for one‑to‑four‑family homes, up 0.07 percentage points in the past year. In states with high FHA delinquency, such as New York, steep property taxes are a major factor; five of the ten counties with the highest tax bills are in New York, where the median Rockland County tax tops $14,000 annually.

    Blue‑coastal cities—New York, San Francisco, Boston, Atlanta, New Orleans, Sacramento—face the steepest carrying costs. In New York City, the annual total of taxes, insurance and maintenance can reach $24,000; San Francisco and Boston follow closely at $22,000 and $21,000, respectively. These cities also shoulder higher costs for unionized labor and pension obligations, which can translate into higher service charges for residents. As commercial real estate struggles, municipalities may increasingly ask homeowners to cover the shortfall, further eroding affordability.

    The data suggest that sustainable homeownership requires more than a low mortgage rate or a modest down payment. Buyers must factor in the full spectrum of costs—property taxes, insurance, routine repairs, and the indirect costs of living in a city with high public‑service expenses. Policymakers should heed this evidence when designing housing initiatives; simply extending mortgage terms or lowering down‑payment requirements does not solve the affordability problem if the total cost of ownership remains prohibitive.

    For anyone considering a purchase, the Zillow‑Thumbtack report is essential reading. It highlights that the true price of a home is the sum of mortgage payments, taxes, insurance, and maintenance, all of which are climbing faster than incomes. Understanding these figures is the first step toward making a financially sound decision and avoiding the pitfalls that led to the 2008 collapse.