Buying a home has become America’s most expensive mistake. The average annual costs associated with owning and maintaining a typical single-family home in the U.S. amount to $21,400 in 2025, according to Bankrate’s new Hidden Costs of Homeownership Study.
But some states hit harder than others, turning the American Dream into a financial nightmare that drains savings accounts faster than a Vegas casino. In Bankrate’s 2025 Homeowner Regrets Survey, nearly half of homeowners (42 percent) who had at least one misgiving about buying their home cited maintenance and other hidden costs as being more expensive than expected.
What makes these hidden costs particularly devastating? They compound relentlessly. That’s why consumers are particularly feeling the pain in the form of home maintenance costs – the highest of our hidden expenses at $8,808 a year. That’s almost two times the cost of utilities/energy ($4,494), double the cost of property taxes ($4,316), four times the cost of home insurance ($2,267) and six times the cost of internet/cable ($1,515). These aren’t small inconveniences – they’re budget-destroying expenses that can easily transform an “affordable” monthly payment into a financial burden that consumes ever-larger portions of household income.
The states ranked below share common characteristics: extreme weather driving up insurance costs, aging infrastructure requiring constant investment, and regulatory environments that add expense layers to every aspect of homeownership. So lets start, these are the states where homeowner dreams become financial nightmares.
25. Delaware – The First State’s First Financial Shock
Delaware might market itself as tax-friendly for businesses, but homeowners discover they’re subsidizing corporate breaks through crushing utility costs that compound monthly. With electricity rates at 16.57¢/kWh—22% above the national average—and rising due to massive wholesale price increases from PJM auctions, the First State has become the first place homeowners regret moving to.
The Electricity Rate Reality Check
Delaware’s deregulated electricity market promises choice but delivers expensive disappointment. Current residential rates average 16.57¢/kWh, with some areas like Newark hitting 16.80¢/kWh and monthly bills averaging $119-156 depending on location and consumption. Delaware electricity costs are rising due to massive wholesale price increases from PJM auctions, meaning rates will continue climbing regardless of which “competitive” provider you choose.
- Average electricity rate: 16.57¢/kWh (above national average)
- Deregulated market since 1999 creates rate confusion
- Limited service provider competition increases costs
- Coastal maintenance requirements often overlooked
24. Rhode Island – Small State, Big Bills
Rhode Island packs a financial punch that hits harder than a Category 5 hurricane—except the destruction never stops. With electricity rates hitting 29¢ per kWh (70% above the national average) and monthly electric bills averaging $254, the Ocean State drowns homeowners in utility costs while salt air silently destroys everything they own.
The Electricity Rate Execution
Rhode Island’s electricity rates represent a homeowner execution that happens monthly. Current data shows residential rates at 29¢ per kWh, with Providence residents paying 28.1¢ per kWh—both figures crushing the national average of 16.5¢. The average monthly electric bill of $254 translates to over $3,000 annually just for basic electricity, before heating costs that can double during brutal New England winters.
| Cost Category | Annual Amount | Comparison |
|---|---|---|
| Electricity | 27.84¢/kWh | 68% above national average |
| Winter heating | $3,600+ | Often exceeds $400/month |
| Salt damage repairs | $3,200 | Constant maintenance required |
23. Connecticut – The Constitution State’s Costly Constitution
Connecticut homeowners face the perfect storm of America’s most crushing dual burden: crushing property taxes as the nation’s third-highest tax state combined with electricity rates that make every switch flip a financial decision. At 30¢/kWh for electricity and a median property tax of $4,738 annually, Connecticut transforms the American Dream into a monthly budget nightmare.
The Electricity Rate Execution
Connecticut’s deregulated electricity market has become a homeowner execution chamber. Current rates hit 29.37¢ per kilowatt-hour in April 2025, translating to monthly bills averaging $184 for typical residential usage. Compare this to the national average of 16.5¢/kWh, and Connecticut homeowners pay 75% more just to keep the lights on—that’s an extra $1,800+ annually before considering heating, cooling, or appliances..
- Electricity rate: 30.24¢/kWh (73% above national average)
- Among top 3 states for property tax rates
- Deregulated since 1998 but limited competition
- High building compliance costs
22. Maine – The Pine Tree State’s Prickly Prices
From May 2024 to May 2025, Maine experienced a 36.3% increase, the largest increase in residential electricity prices in the United States. That’s not a typo – Maine literally leads the nation in electricity price increases, turning every home utility decision into a budget crisis.
Living in Maine means dealing with brutal winter heating bills and the state’s remote location drives up costs for everything from home repairs to basic maintenance supplies.
Maine’s Shocking Cost Increases
- Electricity price increase: 36.3% in one year (highest in nation)
- Winter heating oil: $2,800-$4,200 annually
- Remote location premium: 25-40% on materials/labor
- Harsh winter damage: $2,000+ annual repairs
21. Vermont – Green Mountains, Red Bank Accounts
Vermont sells itself on rural charm and environmental consciousness, but the financial reality is punishing. We’re seeing states like Vermont with rising costs related to recent floods. The state’s commitment to renewable energy sounds great until you see how it translates to monthly bills.
Heating costs in Vermont can consume twenty percent of a household’s entire income during peak winter months. Rural property maintenance creates a constant stream of expensive problems from well water systems to septic maintenance.
| Vermont Hidden Costs | Monthly Impact | Annual Total |
|---|---|---|
| Heating Oil/Propane | $250-400 | $3,000-4,800 |
| Well/Septic Maintenance | $150 | $1,800 |
| Flood Insurance | $125 | $1,500 |
20. Massachusetts – Bay State Budget Breaker
Massachusetts homeowners face a perfect storm of crushing costs where every expense carries a premium that compounds into financial devastation. With electricity rates now hitting 34¢/kWh in 2025—a staggering 96% above the national average—the Bay State has become a homeowner’s budget nightmare where even basic utilities drain bank accounts faster than anywhere else in America.
The Electricity Shock That Never Ends
The latest data reveals Massachusetts electricity costs have exploded beyond previous estimates. EnergySage reports current rates at 34¢/kWh, while other sources confirm residential rates between 27.40¢-29.94¢/kWh. Even the conservative estimate makes Massachusetts electricity nearly double the national average, with Eversource implementing a brutal 12.3% rate increase in August 2025, pushing their Price to Compare from 13.241¢ to 14.884¢ per kWh.
| Expense Category | Boston Metro | Western MA | State Average | National Comparison |
|---|---|---|---|---|
| Electricity Rate | 34¢/kWh | 29-32¢/kWh | 31¢/kWh | 96% above national average |
| Monthly Electric Bill | $327 avg | $280-310 | $320+ | Nearly double US average |
| Bathroom Renovation | $25,000-40,000 | $20,000-32,000 | $30,000+ | 65-80% above national rates |
| Kitchen Renovation | $35,000-55,000 | $28,000-45,000 | $42,000+ | 70% premium over US average |
| Building Permits | $500-2,500 | $300-1,800 | $800+ | 40-60% above national average |
| Winter Heating | $450-650/month | $400-550/month | $500+ | Double most US cities |
19. New Hampshire – Live Free or Die… Financially
New Hampshire Rate of 22.62¢/kWh puts the “Live Free or Die” state among America’s most expensive electricity markets. Property taxes add insult to injury, ranking among the top five nationally while offering fewer municipal services than high-tax competitors.
New Hampshire’s rural nature means expensive propane heating, costly well maintenance, and septic systems that fail at the worst moments. Many homeowners report spending eight to ten thousand annually on expenses they never anticipated.
The Rural Reality No Realtor Mentions
New Hampshire’s picturesque rural lifestyle comes with hidden financial landmines that blindside new homeowners:
- Propane Heating Nightmare: With limited natural gas infrastructure, most homes rely on propane that can cost 40-60% more than traditional heating methods during harsh New England winters.
- Well Water Woes: Private wells require constant maintenance, with system failures often demanding $10,000-20,000 emergency repairs when you least expect them—typically during the coldest months.
- Septic System Surprises: Rural properties depend on private septic systems that fail at the worst possible moments. Modern alternative systems can cost up to $20,000 to install, and pumping services in remote areas charge premium rates that city dwellers never see.
18. New York – Empire State of Expenses
New York homeowners face property taxes exceeding ten thousand annually in many counties, while utility costs climb relentlessly. The average electricity rate in New York is 26.67 cents per kWh. The state’s average residential energy usage is 566 kWh per month. This amounts to an average monthly bill of approximately $151.
The real kicker is how maintenance costs multiply due to labor shortages and strict regulations. A simple plumbing job costing three hundred elsewhere hits eight hundred in New York. Winter heating bills exceed five hundred monthly before factoring in aging infrastructure repairs.
New York’s Cost Multipliers
- Property taxes: $10,000+ in many counties
- Labor premium: 150-300% above national rates
- Electricity: 26.67¢/kWh (64% above national average)
- Permit/inspection fees: Triple national average
17. Maryland – Free State with Expensive Fees
Maryland homeowners face year-round financial stress with electricity costs and unique coastal insurance requirements. Many discover their homes require flood insurance even when not obviously near water, adding thousands to annual expenses.
The state’s location creates both summer cooling and winter heating expenses. Flood zone designations dramatically increase costs, often catching homeowners completely off-guard during the buying process.
| Maryland Hidden Costs | Typical Range | Surprise Factor |
|---|---|---|
| Flood Insurance | $1,500-3,000 | Often required unexpectedly |
| Property Taxes | $4,800+ | Vary wildly by county |
| Cooling/Heating | $2,400+ | Year-round high usage |
16. Illinois – Prairie State Price Shock
New Jersey has the highest effective property tax rate, followed by Illinois and Connecticut. At 1.95 percent, the average property tax rate in Illinois is the second highest in the country, according to the Tax Foundation. But raw percentages don’t capture Illinois’s cruel reality: a financial death spiral where every municipal crisis becomes your personal budget emergency.
The Tax Burden That Never Stops Growing
According to the 2025 report, the Illinois homeowner averages $6,243 a year in property taxes—and that’s before Chicago’s premium penalty kicks in. The average Chicago homeowner ranges from around $2,400 to just under $6,000 annually in property taxes, depending on where in the city you live, but suburban Cook County residents face the real sticker shock, often exceeding $8,000-12,000 annually on modest homes.
| Location | Effective Tax Rate | Annual Tax on $300K Home | Additional Fees | Total Annual Burden |
|---|---|---|---|---|
| Chicago (City) | 1.8-2.2% | $5,400-6,600 | $800-1,200 | $6,200-7,800 |
| Cook County Suburbs | 2.3-2.8% | $6,900-8,400 | $1,200-2,000 | $8,100-10,400 |
| Collar Counties | 2.0-2.5% | $6,000-7,500 | $600-1,000 | $6,600-8,500 |
| Downstate Illinois | 1.4-1.8% | $4,200-5,400 | $400-700 | $4,600-6,100 |
Monthly/Annual Municipal Additions:
- Storm Water Management Fees: $15-50 monthly ($180-600 annually)
- Infrastructure Improvement Districts: $500-2,000 annual assessments
- Special Service Area Charges: $200-800 for streetlights, sidewalks, landscaping
- Municipal Utility Taxes: 6-8% on all utilities, adding $300-600 annually
- Recreation District Fees: $150-400 for parks you may never use
- Library District Levies: $100-300, often approved without homeowner awareness
15. Pennsylvania – Keystone State’s Costly Keys
Pennsylvania presents a financial puzzle where costs compound over time. Municipal storm water fees, annual inspections, and occupancy permits create ongoing expenses homeowners discover only after closing. A home seeming affordable in year one becomes financially overwhelming by year three.
What makes Pennsylvania challenging is how various fees and assessments kick in over time. Property taxes seem reasonable until you factor in school district levies and municipal assessments adding thousands annually.
The Property Tax Shell Game
Pennsylvania’s property tax system is deliberately confusing. In Philadelphia alone, homeowners face a combined 1.3998% rate (0.6159% city + 0.7839% school district), but rural areas often hit even higher effective rates when you factor in:
- School District Levies: These voter-approved increases can add $1,000-2,500 annually with little warning
- Municipal Infrastructure Assessments: Roads, sewers, and utilities trigger special assessments that can cost thousands per property
- County-Level Fees: Each of Pennsylvania’s 67 counties operates different assessment systems, making costs impossible to predict
The Year-Three Financial Cliff
Here’s Pennsylvania’s cruelest trick: many fees and assessments don’t kick in until year two or three of ownership. New homeowners enjoy a honeymoon period where costs seem manageable, then face sticker shock when:
- Municipal improvement projects trigger special assessments
- School districts pass referendum funding increases
- Infrastructure aging requires emergency levies
- Occupancy permit requirements expand and fees double
14. Virginia – Old Dominion’s New Costs
Virginia markets itself as business-friendly and affordable, but homeowners tell a different story. Property taxes vary by 300% between counties, with Northern Virginia areas approaching New Jersey levels while offering fewer services.
Utility costs climb steadily due to infrastructure investments passed to consumers. Many report electricity bills increasing 15-20% annually, far outpacing income growth. Hurricane risk creates insurance costs many inland residents never anticipated.
Virginia’s Geographic Cost Trap
- Property tax variance: 300% between counties
- Utility increases: 15-20% annually
- Hurricane insurance: Required in unexpected areas
- Infrastructure assessments: Frequent surprises
13. Washington – Evergreen State’s Ever-Growing Bills
Washington’s “no income tax” promise is America’s greatest bait-and-switch. While you celebrate saving on state income taxes, the Evergreen State quietly empties your wallet through every other possible channel. Governor Ferguson signed the largest tax increase in Washington’s history into law in 2025, setting the stage for even steeper homeownership costs.
The Property Tax Time Bomb
Seattle and Tukwila were the only cities with levy rate increases for 2025, but don’t let that fool you—property values skyrocketing means higher taxes regardless. Kitsap County homeowners pay a median of $3,841 annually in property taxes, ranking sixth-highest statewide, while Seattle-area homeowners routinely exceed $6,000-8,000 annually on median-value homes.
Washington’s Hidden Cost Breakdown (Annual)
| Cost Category | Seattle Metro | Eastern WA | Surprise Factor |
|---|---|---|---|
| Property Taxes | $6,000-8,500 | $2,500-4,000 | Continuous “lid lifts” approved |
| Mold Prevention | $800-1,500 | $400-800 | Insurance won’t cover gradual damage |
| Moisture Control Systems | $1,200-2,500 | $600-1,200 | Dehumidifiers, ventilation upgrades |
| Rain Damage Repairs | $2,000-5,000 | $800-2,000 | Roof, siding, foundation issues |
| Environmental Compliance | $500-1,200 | $300-800 | Heating system retrofits, stormwater |
| Total Hidden Costs | $10,500-18,700 | $4,600-8,800 | 60% more than anticipated |
12. Oregon – No Sales Tax, No Mercy on Other Costs
Oregon’s lack of sales tax sounds attractive until you see how the state compensates through property taxes and fees hitting homeowners directly. Portland-area property taxes exceed five thousand annually, while environmental regulations create unique homeowner costs.
The state’s wet climate creates ongoing maintenance challenges draining budgets faster than constant rain. Mold remediation, roof repairs, and moisture control systems become necessary expenses many never factored into budgets.
| Oregon Climate Costs | Annual Impact | Prevention Cost |
|---|---|---|
| Mold remediation | $2,000-5,000 | $800 prevention systems |
| Roof maintenance | $1,500 | $500 annual inspections |
| Moisture control | $1,200 | $300 dehumidifier systems |
11. Colorado – Rocky Mountain High Prices
Colorado and Nebraska’s property insurance rates were the highest in the country for homeowners without a mortgage. We’re seeing states like Colorado, which historically was a middle of the pack state when it came to the cost of insurance, seeing rapidly increasing insurance costs due to recent wildfires, and increased hail storms.
Colorado’s elevation creates unique challenges costing thousands annually. UV damage at elevation means exterior maintenance happens twice as frequently, while roofs need replacement every twelve to fifteen years instead of twenty.
- Insurance rates: Highest for mortgage-free homes
- UV damage: Double maintenance frequency
- Roof replacement: Every 12-15 years vs. 20
- Altitude heating costs: $800-1,200 extra annually
10. Minnesota – Land of 10,000 Lakes and 10,000 Expenses
Minnesota’s “nice” reputation masks a homeownership nightmare where Mother Nature conspires with insurance companies to drain your bank account. With homeowners insurance premiums projected to skyrocket 15% by the end of 2025—adding over $500 annually to protection costs—the Land of 10,000 Lakes has become the land of 10,000 unexpected expenses.
The Insurance Avalanche
Minnesota homeowners are caught in a perfect storm of rising costs. The average homeowners insurance premium hit $2,106 in 2024 (still $317 below national average), but 2025’s projected 15% increase pushes many policies above $2,400 annually. That’s before you discover the gaps in coverage that Minnesota’s unique geography creates.
Minnesota’s Winter Cost Reality Check (Annual Expenses)
| Expense Category | Metro Twin Cities | Northern MN | Rural/Lake Properties |
|---|---|---|---|
| Heating Bills | $2,400-3,600 | $3,000-4,800 | $2,800-5,200 |
| Insurance Premium Increases | +$500-700 | +$400-600 | +$600-900 |
| Freeze-Thaw Repairs | $1,500-3,000 | $2,000-4,500 | $1,800-3,500 |
| Septic Winter Issues | $800-1,500 | $1,200-2,500 | $1,000-2,000 |
| Flood Insurance (Lakes) | $400-800 | $300-600 | $1,200-2,400 |
| Emergency Repairs | $2,000-4,000 | $3,000-6,000 | $2,500-5,000 |
| Total Winter Penalty | $7,600-13,600 | $9,900-18,500 | $9,900-19,000 |
9. Wisconsin – America’s Dairyland Drains Wallets
Wisconsin homeowners face brutal winter costs combined with climbing property taxes funding municipal services. Heating bills regularly exceed three hundred fifty monthly during peak periods, while summer brings expensive cooling costs combating humidity.
Many Wisconsin homeowners report annual housing costs ending up 30-40% higher than original calculations, with hidden fees and seasonal expenses creating constant financial pressure.
Wisconsin’s Year-Round Cost Cycle
| Season | Primary Costs | Monthly Impact |
|---|---|---|
| Winter | Heating, snow removal, freeze damage | $350-500 |
| Summer | Cooling, humidity control | $200-300 |
| Year-round | Weather damage repairs | $150-250 |
8. Kansas – Tornado Alley’s Financial Whirlwind
Homeowners in Kansas pay $4,415 per year on average for standard homeowner’s insurance. If you’ve seen the Wizard of Oz, you know exactly why Kansas made the list of states with the most expensive home insurance. It’s right in the middle of tornado alley, seeing an average of 96 tornadoes per year.
Kansas faces unique challenges with wind damage extending beyond tornadoes. Straight-line winds regularly damage roofs, siding, and windows, creating ongoing repair expenses. Many discover standard insurance doesn’t cover everything, requiring additional expensive riders.
- Annual tornado average: 96 per year (highest risk zone)
- Insurance cost: $4,415 annually (70% above national average)
- Wind damage frequency: 40% above national average
- Additional coverage needs: Often required
7. Michigan – Great Lakes, Great Expenses
Michigan’s proximity to the Great Lakes creates a perfect storm of moisture-related expenses that drain homeowner budgets year-round. While the state offers energy rebates up to $14,000 for heat pump upgrades and $8,000 for heating systems, these programs highlight just how desperately Michigan homeowners need relief from crushing energy costs that routinely exceed $400 monthly during brutal winters.
The Moisture Money Pit
Living near the Great Lakes means fighting a constant battle against water infiltration. Interior waterproofing costs range from $5,000-$15,000 for basic protection, while interior basement waterproofing averages $3,000 and exterior averages $7,000. But that’s just the beginning of Michigan’s moisture nightmare.
| Expense Category | Metro Detroit | West Michigan | Northern MI | Up North/Rural |
|---|---|---|---|---|
| Winter Heating | $400-600/month | $350-550/month | $450-700/month | $500-800/month |
| Basement Waterproofing | $8,000-15,000 | $6,000-12,000 | $7,000-14,000 | $5,000-10,000 |
| Humidity Control Systems | $2,500-4,000 | $2,000-3,500 | $3,000-5,000 | $2,200-4,200 |
| Mold Prevention/Remediation | $1,500-3,500 | $1,200-3,000 | $1,800-4,000 | $1,000-2,500 |
| Generator Systems | $3,000-8,000 | $2,500-6,000 | $4,000-10,000 | $3,500-9,000 |
| Power Surge Protection | $800-1,500 | $600-1,200 | $1,000-2,000 | $700-1,400 |
| Annual Total Surprise Costs | $16,200-32,600 | $12,650-26,250 | $17,250-35,700 | $12,900-27,900 |
Michigan’s unique geography creates moisture problems that coastal states don’t face. The Great Lakes generate massive humidity levels that penetrate homes through foundation walls, creating basement conditions perfect for:
- Persistent Condensation: Year-round humidity requires constant dehumidification
- Foundation Seepage: Groundwater pressure from lake-effect precipitation
- Vapor Intrusion: Moisture rises through concrete slabs and basement floors
- Ice Dam Formation: Winter freeze-thaw cycles create roof and foundation damage
6. Ohio – Buckeye State Budget Buster
Ohio might seem affordable on the surface, but hidden costs multiply rapidly. Property taxes vary wildly by district, with some areas approaching coastal state levels while offering significantly fewer amenities and services.
Weather extremes create year-round maintenance challenges. Ice damage in winter, storm damage in summer, and humidity issues create constant repair cycles draining savings. Many report spending five to eight thousand annually on weather-related maintenance.
Ohio’s Utility Deregulation Confusion
- Variable rate programs: Often enrolled unknowingly
- Rate confusion: Complex structures double bills
- Weather damage: $5,000-8,000 annually typical
- Service area disparities: Huge cost variations
5. Texas – Everything’s Bigger, Including the Bills
Homeowners in the state pay $4,078 per year on average, but some areas see even higher costs. The Lone Star State faces multiple threats creating insurance costs consuming five percent of household income.
Texas utility costs are brutal during summer when cooling bills regularly exceed three hundred monthly for modest homes. The deregulated energy market creates confusion often resulting in homeowners paying significantly more due to complex rate structures.
| Texas Regional Threats | Insurance Impact | Additional Costs |
|---|---|---|
| Gulf Coast Hurricanes | $6,000+ annually | Wind/flood separate coverage |
| Tornado Corridor | $4,500+ annually | Hail damage frequent |
| Wildfire Zones | $5,200+ annually | Defensible space requirements |
4. Oklahoma – Sooner State Sooner Regret
Oklahoma is the most expensive state for home insurance at $5,858 a year, making it financially devastating for homeowners. The average premium for the state is $4,623 per year, according to the Bankrate report. Tornadoes are most likely to happen in spring here.
The state sits in Tornado Alley’s heart, creating insurance costs exceeding monthly mortgage payments on many homes. Financial damage extends beyond tornado season, with severe thunderstorms, hail, and straight-line winds creating year-round expenses.
- Insurance cost: $5,858 annually (highest in nation)
- Tornado risk: Peak in spring season
- Hail frequency: 3x national average
- Annual claim likelihood: 1 in 15 homes
3. Nebraska – Cornhusker State Husks Your Budget
You might be surprised to see this midwestern state beating out Florida for the highest average home insurance premiums. But Nebraskan homeowners are paying $6,425 annually for coverage, according to Bankrate. The reason for the sky high premiums largely comes down to Nebraska’s harsh storm season – it’s one of the worst states for hail damage and intense winds.
Nebraska’s agricultural economy doesn’t translate to homeowner savings. Property taxes remain high funding rural infrastructure, while insurance costs continue climbing due to increasingly severe weather patterns. Many report annual housing costs exceeding supposedly “expensive” coastal cities.
Nebraska’s Perfect Storm of Costs
| Cost Category | Annual Amount | National Rank |
|---|---|---|
| Home Insurance | $6,425 | #2 highest |
| Hail Damage Risk | Golf ball-size typical | Worst in nation |
| Property Taxes | High for rural infrastructure | Above average |
2. California – Golden State’s Expensive Gold Rush
California joins Hawaii as the only state with annual hidden homeownership costs in excess of $30,000 a year. California’s regulatory environment creates expenses existing nowhere else in America. From earthquake retrofitting to solar mandates to environmental compliance, homeowners face constant expensive upgrades.
Wildfire insurance has become increasingly expensive and difficult to obtain, with many areas becoming essentially uninsurable. Property taxes don’t offer relief either, ranking as the fifth most expensive nationally with average bills of $7,378 annually.
- Hidden costs: $30,000+ annually (second highest nationally)
- Maintenance costs: $17,338 annually
- Wildfire insurance: Increasingly unavailable
- Regulatory compliance: Constant expensive requirements
1. Hawaii – Aloha to Your Bank Account
While Hawaii had the highest average in 2025 of $34,573 in hidden costs, West Virginia had the lowest annual hidden costs of $12,579, Bankrate said… Much of Hawaii’s high cost of homeownership is due to maintaining the home, which averages to about a whopping $19,642 annually. Additionally, Hawaii home owners pay an average of $7,871 on utilities and energy costs and $4,301 on property taxes.
Hawaii had the highest rate, with customers paying 42.10 cents per kWh. On average, American households use 899 kWh of electricity each month – meaning that Hawaii residents pay a monthly electric bill of $378, on average.
Living in paradise comes with a hellish price tag destroying budgets faster than lava destroys homes. Everything costs more – from basic repairs to routine maintenance to emergency services. A simple plumbing repair costing two hundred on the mainland easily hits six hundred due to labor costs, supply chain challenges, and limited competition.
| Hawaii Cost Categories | Annual Amount | National Comparison |
|---|---|---|
| Home Maintenance | $19,642 | 2.2x national average |
| Energy & Utilities | $7,871 | $1,700 more than any other state |
| Electricity Rate | 42.10¢/kWh | 2.4x national average |
| Total Hidden Costs | $34,573 | Highest in nation |
The Hidden Truth About American Homeownership
The American Dream of homeownership has become a financial nightmare for millions discovering the true cost extends far beyond mortgage payments. In light of this, it’s apparent why 81% of homeowners say the costs of homeownership are higher than they expected. Specifically, 37% of homeowners point to higher-than-anticipated property taxes, and 32% blame homeowners insurance.
The average annual costs associated with owning and maintaining a typical single-family home in the U.S. amount to $21,400 in 2025, but some states push this much higher. Considering all these costs, nearly half of American homeowners (44%) believe owning a home is too expensive, and a majority (56%) believe owning a home is not attainable for the average American. That’s a good explanation for why 44% say it’s easier to be a renter than a homeowner and why more than 1 in 7 (15%) have even wanted to go back to renting at some point due to the cost of owning a home.
These hidden costs aren’t small inconveniences – they’re budget-destroying expenses easily adding twenty thousand or more annually. From insurance premiums rivaling mortgage payments to utility bills exceeding car payments to maintenance costs draining emergency funds, today’s homeowners face challenges previous generations never encountered.
“Home insurance is just becoming a bigger and bigger chunk of people’s monthly housing payments,” Gardner said. “I think it’s kind of really eating into the idea of homeownership being a really stable, cost-capped long term bet, especially if you live in a state like Florida or California, or even Texas.”
The saddest part? Most expenses were completely predictable – they just weren’t disclosed during buying. The states topping this regret list share common traits: extreme weather driving insurance and maintenance costs, aging infrastructure requiring constant investment, and regulatory environments adding expense layers to every homeownership aspect. These costs compound over time, turning seemingly affordable monthly payments into financial burdens consuming ever-larger income portions.
Did you expect your dream home might become your financial nightmare?