For decades, owning a home has been one of the clearest markers of financial stability and success in the U.S. However, new data reveals that this dream is becoming increasingly difficult to maintain—even for those who’ve already crossed the threshold into ownership.
A recent Investopedia report, paired with interviews from The Guardian, paints a sobering picture of what it really costs to own a home in 2025—and it goes far beyond the mortgage.
The True Cost of Homeownership in 2025
The average annual cost of non-mortgage expenses for homeowners has jumped to $24,529—an alarming increase from $17,958 just a year ago. These expenses include:
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Utilities
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Home insurance
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Property taxes
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HOA fees (for those in associations)
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Ongoing repairs and maintenance
To put this into perspective: the average annual mortgage payment in 2025 is $26,508. This means homeowners are nearly doubling their housing costs once all factors are accounted for.
Homeowners in HOA communities pay an additional average of $3,077 yearly, and they also commit an average of nearly 7 hours per week to upkeep tasks—time that adds up quickly for working families or retirees.
Buyer’s Remorse on the Rise
These rising expenses aren’t just numbers—they’re triggering a deep emotional and financial toll.
According to the report:
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69% of homeowners say they regret buying their home.
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44% say renting would have been a better financial choice.
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15% are seriously considering going back to renting.
One of the biggest drivers of regret? Underestimating the cost of maintenance and unexpected repairs.
Many owners believed their financial burdens would stop after securing their mortgage. But the reality has hit hard—especially for first-time buyers who entered the market during the pandemic’s competitive rush.
Real Americans, Real Struggles
The Guardian brings the data to life with stories from homeowners across the country:
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Meg from Maryland (60): Now spends half her income on housing and had to take out a second mortgage for major repairs.
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Amie from Maine (53): Was shocked by $5,000 annual heating bills and unmanageable maintenance costs on her mobile home.
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Jane from California (69): Saw her annual fire insurance premium skyrocket from $3,200 to $7,886, despite living on a fixed retirement income.
These stories highlight a harsh reality: homeownership is becoming unsustainable, even for those who have “done everything right.”
Why This Matters: The Future of Housing Stability
This trend isn’t just affecting individuals—it’s reshaping the broader housing market:
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Prospective buyers are becoming hesitant, driving increased competition in rental markets.
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Seniors and fixed-income individuals are particularly vulnerable to insurance spikes and tax hikes.
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The line between owning and renting is blurring as both become increasingly unaffordable.
For property managers, landlords, and policymakers, this shift signals a need for greater transparency in cost disclosures, affordable housing strategies, and legislation that addresses property insurance and tax burdens.
Key Takeaways
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Homeownership now demands more than just a down payment and mortgage. Additional costs often rival or exceed monthly mortgage payments.
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Unexpected expenses are a leading cause of buyer’s remorse. From repairs to insurance, homeowners are often unprepared for the true cost of maintaining a property.
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Renting may no longer be just a “starter option.” With increasing ownership burdens, renting is regaining appeal, even among older adults and families.
Conclusion
As we look to the future, the question isn’t just “Can I afford to buy a home?”—it’s also “Can I afford to keep it?”
In a landscape where expenses are rising faster than incomes, the traditional dream of homeownership is being reevaluated. For many Americans, it’s not about giving up on the dream—but redefining it with clearer expectations and smarter strategies.
Source:
MSN – Can You Afford a Home in 2025? New Report Exposes Shocking Ownership vs. Renting Costs