Homeownership expenses are on a tear
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On the spectrum that runs from gross hyperbole to established fact, the statement “everything about owning a home is more expensive” currently sits far closer to the latter than it has in a long time. An analysis conducted by the Wall Street Journal found that costs went up in the following categories between 2019 and 2025:
Those cost increases have made it harder for middle-class Americans to join the ranks of homeowners. According to Redfin, homebuyers with a budget of $2,500/month in 2019 could have purchased a $517,500 home with 20% down at the then-common 3% interest rate without their budget spreadsheet throwing an #ERROR. Nowadays, with that same monthly budget, they could only afford a $384,000 home at the now-standard 6.5% interest rate. Longtime homeowners feel the bite, tooIn 2019, US homeowners spent an average of $9,000 per year on home improvement, maintenance, and emergency repairs. In 2025, they had to spend $12,500 for the same, according to Angi survey data. While interest rates have risen, so have property valuations, keeping home prices high and igniting a cycle of property-tax reassessments in many parts of the country, raising taxes and straining affordability further. What else is up? According to property management software Vantaca, HOA fees have gone up 51% from 2021 to 2025. And retail electricity rates. And labor and materials prices, which drive up maintenance and insurance costs. Life is just a bowl of expenses: The current rate of inflation in the US is 4.2%, more than double the Federal Reserve’s traditional target of 2%. That means there are more demands on Americans’ budgets than there are relatives trying to log into their Disney+ account as the costs of food and housewares, as well as services like health insurance and childcare, rise alongside home expenses |