The True Cost of Homeownership: 2019 vs 2025 (Every Category Explained)

Homeownership now consumes 47% of median household income — higher than the pre-2008 crisis peak. Here's exactly where the money is going.

Here's a stat that should alarm every homeowner: the annual cost of homeownership for a median-priced house now takes up 47% of median household income. That's higher than the peaks we saw before the 2008 financial crisis.

And it's not just home prices and mortgage rates doing the damage.

According to Bankrate's 2025 study, the “hidden costs” of homeownership — property taxes, insurance, maintenance, and utilities — now average $21,400 per year. That's up from roughly $14,400 in 2020. A 49% increase in five years.

Every major cost category has exploded since 2019. Here's the full breakdown — and what you can do about it.

Home Prices: Up 53% Since 2019

Let's start with the obvious one.

In 2019, the median U.S. home price hovered around $280,000. Today, depending on the source, you're looking at $428,000 to $438,000.

That's roughly 50% appreciation in six years — driven almost entirely by the pandemic-era boom of 2020-2022, when annual appreciation hit 8-9%.

Regional variations are even more dramatic. Western and Sun Belt states saw 60%+ appreciation. Rural counties appreciated 64% compared to 42% for metro areas.

Higher prices mean higher down payments, higher mortgage payments, and higher carrying costs across every category.

Mortgage Rates: Nearly Double 2019 Levels

The 2019 average 30-year fixed rate was 3.94%. By year-end, rates had dropped to around 3.7%.

In 2025, we've been stuck in the 6.5-7% range for most of the year. As of January 2026, rates sit around 6.06% — still nearly double the 2019 baseline.

Here's what that means in real dollars:

On a $400,000 home with 20% down, a buyer in 2019 at 3.7% paid roughly $1,474/month in principal and interest. That same buyer today at 6.5% pays $2,023/month. That's an extra $549/month — a 37% increase — just from the rate difference.

The historical perspective matters: the median 30-year rate since 1971 is 7.31%. By that measure, 2019 was the anomaly, not today. But that doesn't make today's payments any easier.

Homeowners Insurance: Up 50-70% (The Stealth Tax)

This is the cost category that's blindsided the most people.

In 2019, the average annual homeowners insurance premium was roughly $1,200-1,400. Today, depending on the study, you're looking at $2,800 to $3,500 per year.

That's a 44-53% increase nationally since 2019. And in disaster-prone states, it's far worse.

According to S&P Global, 33 states saw double-digit premium increases in 2024 alone. Nebraska led at 22.7%. Utah saw a 59% jump from 2021-2024. Florida and Colorado homeowners watched their escrow payments — which include insurance — spike 55-57% in 2025.

Even at the company level, the divergence is striking. Progressive raised premiums 87.8% since 2019. State Farm? Just 24.1%.

The drivers are structural:

• Climate-related disasters (hurricanes, wildfires, flooding)
• Inflation in building materials and labor
• Skyrocketing reinsurance costs

This isn't a temporary spike — it's a new baseline.

Property Taxes: Up 27% (And Often Wrong)

Property taxes are up 27% nationally from 2019 to 2024.

In some states, the increases are even steeper. New York saw a 21% jump in that period. And here's the delayed fuse: properties purchased during the 2020-2021 boom are just now getting reassessed at their new, higher values.

The stress is showing. Q1 2025 property tax delinquencies hit their highest level since 2018.

Here's what most homeowners don't realize: 30-60% of properties are over-assessed.

When home prices jumped 50%, counties reassessed values using automated systems. These systems make mistakes — wrong square footage, outdated comparable sales, features you don't have.

Even a 5-10% overassessment costs you hundreds of dollars per year. And it compounds — you overpay every year until you challenge it.

What you can do:

• Check your property assessment when your notice arrives (usually April-May)
• Compare your assessed value to recent sales in your neighborhood
• File a protest if your value is too high (deadline: typically 30 days from notice)
• Most homeowners who protest get a reduction — but only 5% actually file

Don't leave $500-$1,000+ per year on the table. If your property taxes jumped significantly, make sure your assessment is accurate.

HOA Fees: Up 43% (The Quiet Compounding)

HOA fees rarely make headlines, but the compounding is relentless.

In 2019, the average HOA fee was $170 per month. By 2023, it had climbed to $243 — a 43% increase in four years.

The trend is accelerating. In 2024, 41% of property listings included HOA dues, up from 39% the year before. The median monthly fee jumped nearly $15 in a single year.

Urban communities in high-cost areas are seeing 5-7% annual increases. And that doesn't account for special assessments — the hidden bomb that hits when aging buildings face deferred maintenance, new reserve requirements, or structural repairs.

Maintenance & Repairs: Up 55% (Labor Is the Problem)

Here's a number that should concern anyone budgeting for home repairs: labor now accounts for nearly 60% of repair and remodeling costs.

That's up significantly from pre-pandemic levels, and it's not coming down. The construction industry needs to attract 439,000 workers in 2025 just to meet demand. The labor shortage is structural.

Materials aren't helping either. Construction materials are projected to increase 5-7% in 2025. New tariffs — including a 50% import tax on kitchen cabinets and bathroom vanities — are adding hundreds of dollars to typical projects.

One industry veteran put it bluntly: his “average Home Depot bill for a rehab has increased from $18,000 to $28,000” since the pandemic. That's a 55% increase.

And the maintenance burden is only growing. According to Harvard's Joint Center for Housing Studies, the median age of an owner-occupied U.S. home is now over 40 years old. That aging stock requires constant repair, updates, and capital investment.

Financial experts recommend budgeting 1-3% of a home's value annually for maintenance. For a $400,000 home, that's $4,000-12,000 per year.

Utilities: Up 30-40% (The Overlooked Line Item)

Utility costs don't get enough attention in homeownership discussions — but they've moved significantly.

According to the U.S. Energy Information Administration:

• Electric bills are up nearly 30% since 2021
• Natural gas is up nearly 40% since 2019

Combined, that's easily $50-100+ per month added to the baseline since 2019.

Energy-efficient properties — better insulation, newer HVAC systems, LED lighting — are becoming competitive advantages, not just nice-to-haves.

The Complete Picture: 2019 vs 2025 Side-by-Side

Let's put it all together. Here's what a typical homeowner pays monthly, comparing a 2019 purchase to a 2025 purchase:

Category20192025ChangeHome Price$280,000$428,000+53%Mortgage Rate3.7%6.5%+2.8 ptsMonthly P&I (20% down)$1,032$2,166+110%Insurance$115/mo$250/mo+117%Property Tax$280/mo$356/mo+27%HOA$170/mo$243/mo+43%Maintenance$350/mo$500/mo+43%Utilities$200/mo$270/mo+35%TOTAL$2,147/mo$3,785/mo+76%

That's an extra $1,638 per month — or nearly $20,000 per year — to own the same quality of home.

And median household income? It hasn't come close to keeping pace.

What You Can Do About Rising Homeownership Costs

You can't control mortgage rates or home prices. But you can control some of these costs.

1. Challenge Your Property Assessment

Property taxes are one of the few homeownership costs you can actually reduce.

If your assessed value is higher than recent sales in your neighborhood, file a protest. Most homeowners who challenge their assessment get a reduction — but only 5% actually file.

The protest window is short (usually 30 days after your notice arrives in April-May). Don't miss it.

2. Shop Your Homeowners Insurance

Premiums vary wildly by company. Progressive raised rates 87.8% since 2019. State Farm raised them 24.1%.

Get quotes from multiple carriers. Bundle with auto insurance for discounts. Raise your deductible if you can afford it.

3. Invest in Energy Efficiency

Better insulation, a newer HVAC system, LED lighting, and a programmable thermostat can cut utility bills by 20-30%.

Federal tax credits are available for energy-efficient upgrades — solar panels, heat pumps, and insulation improvements.

4. Budget for Maintenance

Don't get blindsided by repair costs. Set aside 1-3% of your home's value annually. For a $400,000 home, that's $4,000-12,000 per year.

Regular maintenance (roof inspections, HVAC servicing, gutter cleaning) prevents expensive emergency repairs later.

5. Refinance When Rates Drop

Mortgage rates have come down from their 2023 peak of 7.8%. If you locked in at 7%+ and rates drop to 6% or below, refinancing could save you hundreds per month.

The Bottom Line

Homeownership costs have fundamentally repriced since 2019.

Every category is up:

• Home prices: +53%
• Mortgage rates: +2.8 percentage points
• Insurance: +50-70%
• Property taxes: +27%
• HOA fees: +43%
• Maintenance: +55%
• Utilities: +30-40%

The total monthly cost jumped 76% — from $2,147 to $3,785 for a median home.

You can't control everything. But you can make sure you're not overpaying on property taxes, insurance, or utilities.

Start with your property assessment. If it went up significantly in the last few years, there's a good chance it's too high. Challenge it before the deadline.

Ready to reduce your property taxes? Get a free savings estimate at TaxDrop.com in under 2 minutes. See our primary home tax protests page.

Keep Reading

• 5 Signs Your Home Is Overassessed
• Property Tax Protest Success Rates