California homeowners are paying more than $32,000 a year in hidden ownership costs, the second highest in the nation, according to a new Bankrate report.
The study found that owning a single-family home in California comes with an average annual cost of $32,262 beyond mortgage payments. These expenses include property taxes, insurance, utilities, cable, internet, and maintenance.
The only state with higher costs is Hawaii, where hidden homeownership expenses reach $34,573 a year.
California outpaces national average by over 50 percent
The national average for these hidden costs is $21,400, making California’s burden nearly 51 percent higher.
Among the key cost components, maintenance alone in California averages $17,338 per year, while property taxes reach $7,378, fifth highest nationwide. Utilities and insurance costs total around $7,546.
These figures are based on 2025 data from 49 states (excluding New York due to limited data). The report analyzed annual costs related to ownership of typical single-family homes.
Inflation and home values driving up costs
The report links the high costs to California’s elevated home values, which increase taxes and insurance, along with a sharp rise in building materials, labor, and services over the past five years.
“Something that cost $100 five years ago now costs $125,” Bankrate noted, citing a 25 percent cumulative inflation rate since 2019.
Hidden costs catch buyers off guard
Linda Bell, a home loan expert at Bankrate, said first-time buyers are often unprepared.
“Most people focus only on their monthly mortgage payment,” she said. “But recurring costs like maintenance, taxes, and utilities can run into the thousands each year and strain household finances.”
According to a separate Bankrate survey, 42 percent of homeowners who regret buying a home cited unexpected upkeep and hidden costs as the main reason—making it the most common source of regret.
Bell added that location plays a major role in affordability.
“Living in a lower-cost area helps, but hidden costs don’t disappear entirely. Homeowners still face thousands in annual expenses,” she said.
Other high-cost states follow California
After Hawaii and California, New Jersey ranked third with $29,751 in hidden annual costs, followed by Massachusetts at $29,277 and Washington at $27,444.
In Hawaii, while property taxes were relatively low at $4,301, repair and maintenance expenses were $19,642, and energy and utility costs averaged $7,871.
Experts advise prospective homebuyers to consider both upfront purchase prices and long-term maintenance costs when deciding to enter the market.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
