Two families buy homes on the same day in 2024. Same price: $350,000. Same mortgage rate. Same down payment. One lives in New Jersey. The other in Kentucky. After one year of ownership, the New Jersey family has paid $25,573 in non-mortgage costs. The Kentucky family paid $11,559. That's a $14,014 annual difference, and neither family renovated a single room.
The state you live in is the single largest determinant of what homeownership actually costs beyond your mortgage payment. It controls your property tax rate, your insurance premiums, your energy bills, and to some degree, your maintenance costs. The national average of $18,118 per year in "hidden" homeownership costs is about as useful as saying the average temperature in the U.S. is 52°F. It describes no one's actual experience.
Here's what the numbers look like when you zoom in.
30-Second Summary: Annual non-mortgage homeownership costs range from about $11,500 to $29,000 depending on your state. Property taxes, insurance, energy costs, and maintenance all vary dramatically. Where you live matters as much as what you buy.
The Full State-by-State Picture
The table below shows estimated annual non-mortgage costs for selected states, combining property taxes, homeowners insurance, energy/utilities, and maintenance. These aren't mortgage payments. They're the carrying costs of keeping the house.
| State | Property Taxes | Insurance (Est.) | Utilities | Maintenance (Est.) | Total Annual "Hidden" Cost |
|---|
| Hawaii | $3,643 | $900 | $7,200 | $17,272 | ~$29,015 |
| California | $5,388 | $1,800 | $5,400 | $15,620 | ~$28,208 |
| Massachusetts | $6,017 | $1,800 | $5,400 | $12,537 | ~$25,754 |
| New Jersey | $10,485 | $1,300 | $5,885 | $10,098 | ~$27,768 |
| Connecticut | $5,838 | $1,500 | $5,600 | $8,280 | ~$21,218 |
| U.S. Average | $4,300 | $2,470 | $4,500 | $6,848 | ~$18,118 |
| Texas | $4,237 | $3,200 | $4,800 | $6,141 | ~$18,378 |
| Ohio | $3,114 | $1,200 | $4,200 | $4,614 | ~$13,128 |
| Alabama | $960 | $2,400 | $4,800 | $4,687 | ~$12,847 |
| West Virginia | $862 | $1,200 | $3,600 | $3,450 | ~$9,112 |
| Kentucky | $1,551 | $1,300 | $3,592 | $5,116 | ~$11,559 |
Sources: ATTOM Data (2025), Bankrate (2024), EIA (2024), Realtor.com (2024), Tax Foundation (2024)
Note: Maintenance estimates are based on 2% of average home value, which varies by state. Utility estimates combine electricity, gas, water/sewer averages. Insurance estimates blend available state data. Individual costs will vary based on specific location, home size, and age.
A few things jump out from this data.
Why the Extremes Are So Extreme
Hawaii: Highest Total, Lowest Tax Rate
Hawaii's effective property tax rate is the lowest in the nation at just 0.27%. So why is it the most expensive state for homeownership costs? Because the median home price is $867,479. Even a low rate on a high value produces a meaningful tax bill. Then add energy costs: Hawaii imports nearly all its fuel, driving electricity rates above 30 cents per kWh. Maintenance on an $867k home at 2% is over $17,000 per year.
This is a critical lesson. Low rates don't mean low bills.
New Jersey: Property Tax Capital
New Jersey's effective property tax rate is 2.23%, the highest in the nation. On an average home worth roughly $470,000, that's $10,485 per year, more than double the national average. New Jersey homeowners file more property tax appeals than almost any other state: 15,717 appeals in 2025 resulted in $2 billion in assessment reductions.
If you live in New Jersey (or Illinois, Connecticut, or any high-rate state), reading our guide on how property tax is calculated and how to appeal isn't optional. It's self-defense.
Texas: No Income Tax, But...
Texas has no state income tax, which attracts relocators from California and the Northeast. But the effective property tax rate is 1.38%, and home insurance premiums are among the highest in the country due to storm, hail, and flood risk. The "tax savings" from no income tax get partially offset by housing costs.
Always look at total cost, not any single line item.
Kentucky / West Virginia: The Affordable Outliers
Kentucky ($11,559) and West Virginia (~$9,112) benefit from the triple advantage of low home values, low tax rates, and below-average utility costs. The tradeoff: fewer high-paying job markets and, in some cases, higher commute costs or limited services. Affordable housing isn't free. The costs just show up differently.
The Four Cost Categories, Ranked by Volatility
Understanding which costs change fastest helps you plan.
1. Home Insurance (Most Volatile)
The national average for home insurance premiums rose to $2,470 in 2024, a 9% year-over-year increase. But that national average hides wild state-level swings. Nebraska, Louisiana, and Florida have seen premium increases of 20% to 40% in recent years, driven by climate-related claims (hurricanes, tornadoes, wildfires) and rising replacement costs.
If you live in a climate-vulnerable state, budget for insurance to increase 10% to 15% annually for the foreseeable future. That's not pessimism. That's what the data says.
2. Property Taxes (Moderately Volatile)
Property taxes rise when your home's assessed value increases or when local governments raise mill rates. The national average increased 5.8% in 2024. In hot housing markets, reassessments can push bills up 10% to 20% in a single year.
Some states cap annual increases. California's Prop 13 limits assessed value increases to 2% per year. Texas caps school district tax increases on homesteads. Know your state's rules.
3. Utilities (Seasonal, Trending Up)
Energy costs fluctuate seasonally but trend upward. Water and sewer bills have risen 24% over five years. Electricity rates averaged 17.78 cents/kWh nationally in 2025, but some states pay double that.
For a detailed breakdown, see our guide on average utility bills by type and state.
4. Maintenance (Lumpy, Unpredictable)
Maintenance spending averaged $4,392 for upkeep plus $3,784 for renovations in 2024. But these are averages. In any given year, you might spend $800. The next year, the HVAC dies and you spend $13,000. The word "average" does a lot of heavy lifting here.
For budgeting strategies, our guide on the 1% rule and how to budget for home repairs covers three different methods.
How to Use This Data
The state-level averages are starting points. Your actual costs depend on your specific home's age, size, location within the state, and efficiency. A 2023-built home in a Louisville suburb will cost less to maintain than a 1960s farmhouse in rural eastern Kentucky, even though they're in the same state.
Here's a more practical way to estimate your personal number.
Step 1: Look up your county's effective property tax rate (your county assessor's website or the Tax Foundation's state data).
Step 2: Get a homeowners insurance quote for the specific property (not a state average).
Step 3: Ask the current owner or utility providers for 12 months of utility history at the address.
Step 4: Estimate maintenance at 1% to 2% of the home's value, adjusting up for older homes.
Step 5: Add it all up. Compare to your post-tax monthly income. If total housing costs (mortgage + hidden costs) exceed 35% of gross income, you're in the danger zone.
Use our mortgage calculator to model the full monthly picture with taxes, insurance, and estimated extras.
The Opportunity Cost Angle
There's one more dimension to state costs that rarely gets discussed. In expensive states, you tie up more capital in the down payment. A 20% down payment on a median home in California ($906,000) is $181,200. In West Virginia ($253,000), it's $50,600.
That $130,600 difference in locked-up capital, invested in Vanguard's VTI at 5% annually, generates about $6,530 per year in returns you'd forgo by living in California. Add that to the already-higher carrying costs, and the true economic gap between states is even wider than the tables suggest.
This doesn't mean California is a bad place to own a home. Appreciation potential and earning power factor in too. But the numbers should be clear-eyed, not aspirational.
For a complete framework on comparing all costs (including opportunity cost), see our guide on the true cost of homeownership.
Your Next Move
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Run your state-specific numbers before making a purchase decision. Don't rely on national averages. Your county assessor's website, an insurance quote, and a utility history request give you real data in about an hour.
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Compare total cost, not purchase price. A $300,000 home in New Jersey with $27,000/year in carrying costs is more expensive over 10 years than a $350,000 home in a state with $13,000/year in carrying costs.
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If you're relocating, factor in insurance trends. A state with rising premiums (Florida, Louisiana, Nebraska) is getting more expensive every year, regardless of home prices.
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Look into your state's property tax exemptions. Homestead, senior, veteran, and income-based exemptions vary by state but can save $500 to $3,000+ annually.
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Build a dedicated savings buffer for the costs you can't predict. A high-yield savings account at Ally Bank or Marcus earning 4%+ APY is the right place for this money. Not your checking account. Not under the mattress.
References
- Bankrate. (2024). Hidden Costs of Homeownership Study. https://www.bankrate.com/mortgages/hidden-costs-of-homeownership-study/
- ATTOM Data Solutions. (2025). Average Property Tax Amount on Single-Family Homes Up 5.8 Percent Across U.S. in 2024. https://www.attomdata.com/news/market-trends/home-sales-prices/2024-annual-tax-report/
- Tax Foundation. (2024). Property Taxes by State 2024. https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2024/
- U.S. Energy Information Administration. (2024). 2024 Average Monthly Bill - Residential. https://www.eia.gov/electricity/sales_revenue_price/pdf/table_5A.pdf
- Campisi, N. (2025). Median Home Prices By State 2025. Forbes Advisor. https://www.forbes.com/advisor/mortgages/real-estate/median-home-prices-by-state/
- Fox 29 Philadelphia. (2026). New Jersey Property Tax Appeals Summary. https://www.fox29.com
- Frankel, R. (2025). Home Insurance Premiums Cost Map. Axios. https://www.axios.com/2025/08/26/home-insurance-premiums-cost-map
- Bluefield Research. (2025). U.S. Municipal Utility Water Rates Index 2024. https://www.bluefieldresearch.com
- Real Estate Witch. (2024). Homeownership Cost 2024. https://www.realestatewitch.com/homeownership-cost-2024/
