Everyone talks about down payments and mortgages, but homeownership includes a bunch of ongoing costs that can shock new homeowners. Here’s what to budget for beyond your monthly payment.

Maintenance and repairs (budget 1-3% of home value annually)

Your home will need constant attention: HVAC servicing, gutter cleaning, roof repairs, plumbing issues, electrical problems, and appliance replacements. A $300K home might need $3,000-9,000 annually in maintenance. This doesn’t include improvements—just keeping things working.

Property taxes that keep rising

Property taxes aren’t fixed and often increase annually based on local needs and home value assessments. What starts as $3,000 annually might be $4,500 in five years. These increases are usually gradual but add up over time.

Higher utility bills

Apartments often include some utilities or have shared costs. Houses require you to heat, cool, and maintain larger spaces. Your electric bill might double or triple compared to apartment living.

Homeowners insurance plus extras

Basic homeowners insurance is required by your mortgage company, but you might also need flood insurance, umbrella insurance, or higher coverage limits. Insurance costs increase over time and vary dramatically by location and risk factors.

HOA fees and special assessments

If you buy in a community with an HOA, expect monthly or annual fees plus occasional special assessments for major projects. These fees typically increase annually and can include surprise expenses for community improvements.

Tools and equipment

You’ll need a lawnmower, leaf blower, ladder, basic tools, garden hose, snow shovel, and other equipment apartments don’t require. Quality tools are expensive upfront but last longer than cheap alternatives.

Landscaping and yard maintenance

Even basic lawn care requires ongoing expenses: fertilizer, mulch, plants, watering costs, and equipment maintenance. Professional landscaping services can cost $100-300+ monthly depending on your area and needs.

Unexpected system replacements

Water heaters last 8-12 years ($1,200-2,000 to replace). HVAC systems last 15-20 years ($3,000-8,000+ to replace). Roofs last 20-30 years ($10,000-20,000+ to replace). Even if these systems seem fine during home inspection, they might fail soon after purchase.

Moving and setup costs

Moving to a house often costs more than moving to an apartment. Plus, houses require more furniture, window treatments, and décor to not feel empty. Budget several thousand for making your house feel like home.

Time costs

Homeownership requires significant time investment: yard work, maintenance tasks, researching contractors, and managing repairs. If you hire others to do everything, costs increase substantially. If you do it yourself, factor in the time commitment.

Higher transaction costs when selling

Selling a house typically costs 8-10% of the sale price in realtor commissions, closing costs, and repairs/improvements needed for sale. This makes moving expensive and can trap you in a location longer than expected.

PMI and other mortgage costs

If you put down less than 20%, you’ll pay private mortgage insurance monthly until you reach 20% equity. This can be $100-500+ monthly depending on your loan amount and down payment.

Emergency fund needs increase

Homeowners need larger emergency funds because repairs can’t wait and are often expensive. A burst pipe or broken HVAC system requires immediate attention regardless of your financial situation.

None of this means homeownership is bad, but understanding these costs helps you budget realistically and avoid being house poor. Many people can afford the mortgage payment but struggle with the total cost of ownership.