Many buyers consider fixed-rate mortgages as a way to lock in the cost of a home. However, additional ongoing housing costs such as utilities, property taxes, insurance, maintenance, and repairs can continue to increase long after the mortgage payment is finalized.
According to Clever Real Estate’s March 2026 research and analysis, the average U.S. homeowner spends $23,686 annually on non-mortgage expenses. When you include average HOA fees, that cost rises to nearly $28,000 a year, more than the average annual mortgage payment of about $25,000.
Another survey of 1,000 homeowners conducted in May 2026 and commissioned by Mr. Jobar found that 60% of recent homebuyers said their equity was higher than they expected.
“The biggest mistake is taking the ‘fixed’ part of a fixed mortgage literally,” says Zachary Minor, a certified financial planner and chief investment officer at Independence Square Advisors. “Property taxes and insurance are rarely fixed amounts and often account for 20% or more of the total amount paid.”
The report breaks down average annual costs into:
Utilities: $7,679 Maintenance: $5,162HOA Fees: $4,196 Renovations: $3,929 Property Taxes: $3,580 Homeowners Insurance: $3,336
Estimates for utilities, property taxes and insurance are based on federal and utility industry data, while HOA, maintenance and renovation numbers reflect self-reported spending by 1,000 homeowners surveyed by Clever in March 2026.
Although not all homeowners incur all of these costs every year, many of the costs associated with homeownership can continue to increase long after mortgage payments are set.
A fixed rate mortgage does not mean your housing costs are fixed.
Some of your biggest housing costs, other than your mortgage, have been trending upward recently.
According to the Consumer Price Index, household energy costs rose 6.5% in April from a year earlier, well above the 3.8% overall inflation rate for all goods and services tracked by the CPI.
Homeowner insurance costs have also increased significantly, in part due to rising rebuilding costs and increased climate-related risks such as hurricanes, floods, and wildfires. The average annual cost of home insurance is expected to rise 12% in 2025 and another 4% in 2026, according to Insurify.
Property taxes also tend to increase over time. According to real estate analysis firm Atom, the average property tax bill for single-family homes will increase by 3.7% in 2025. Both property taxes and insurance premiums are partially tied to home values, and home values have historically trended upward.
“The cost of running a home is still subject to inflation, local tax policy, insurance markets, labor costs, material costs, energy prices, and climate change risks,” says Thomas Labart, a certified financial planner in New York. “That’s why buyers should not confuse a fixed mortgage payment with a fixed home budget,” he says.
Jeffrey Judge, a CFP in Maryland, says buyers who stretch their budgets primarily based on their monthly mortgage payments may find themselves in financial trouble once they move in.
He recalls one customer who pushed himself to buy near the top of his mortgage approval range. Although the mortgage payment was within budget, $8,400 in property taxes, a 22% jump in homeowner’s insurance premiums at renewal, and a broken water heater just eight months after moving in put a huge strain on their finances.
They made it through, but “just barely,” the judge said.
If you’re considering buying a home, LaBelle says it’s important to have a cushion for maintenance and repairs before you buy.
He recommends setting aside approximately 1% to 3% of a home’s value each year for maintenance and repairs, with older homes or high-risk climates typically requiring the higher end of that range.
“If a buyer spends all their available money on the down payment and closing costs, they may technically win the home, but they lose financial flexibility,” says Labart. “That’s often where buyer’s remorse starts.”
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