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79 July 2024 J O U R N A L States With the Most Expensive Homeownership Costs These are the top five states with the highest costs of homeownership: » Hawaii. With an average annual cost of $29,015, Hawaii is an expensive place to own a home. Much of the tab stems from high home values. With a typical single-family home price of $993,000, applying our estimated maintenance costs of 2% of the home's value leads to a hefty $19,860 per year. The other factors contributing to ongoing costs include average annual property taxes of $3,724; average annual homeowners insurance of $1,455; average annual cable and internet costs of $1,508; and average annual energy bills of $2,468. » California. The Golden State is another place where ongoing costs are inflated by home values. The median single-family sale price in March was $848,300, which means maintenance costs of $16,966 a year. Homeowners in California also pay average annual property taxes of $6,832, average annual homeowners' insurance of $1,572, average annual cable and inter- net costs of $1,434, and average annual energy bills of $1,986. The total annual tab: an estimated $28,790. » Massachusetts. Massachusetts prop- erty taxes are a big lift—the typical bill is $7,413—and single-family home prices are high. At a median sale price of $624,200, you get estimated home maintenance costs of $12,484. Homeowners insurance is also pricier than average, at $1,918 a year, typical- ly. Meanwhile, homeowners in this state pay $1,557, on average, in cable and internet costs, plus an average of $2,941 in energy bills, per year. Taken together, Massachusetts homeowners can expect $26,313 in hidden costs. » New Jersey. Garden State property taxes average $10,026 a year, the high- est in the nation. Single-family home prices are a median of $502,400, trans- lating to maintenance costs of $10,048. Homeowners insurance costs an average of $1,466 a year, while annual cable/internet and energy bills run an average of $1,594 and $2,439, respec- tively. Overall, New Jersey homeown- ers face $25,573 in hidden expenses. » Connecticut. In another state with high property taxes, Connecticut homeowners pay an average of $8,073 per year. Single-family home prices aren't as high—the median of $435,900 leads to annual costs of $8,718, just below the national average. Along with annual cable and internet costs averaging $1,508, annual energy bills averaging $3,367, and annual home- owners' insurance averaging $1,850, homeowners in Connecticut typically spend $23,515 in hidden costs. While the national average hidden costs of homeownership are up approx- imately 26%, the three states with the highest percentage increases from 2020 to 2024 are Utah (+44%), Idaho (+39%), and Hawaii (+38%). Utah and Idaho experienced significant increases in home prices throughout the pandemic, and home values are the primary driver of our calculations. States With the Least Expensive Homeownership Costs These are the top five states with the lowest costs of homeownership: » Kentucky. With an average annual cost of $11,559, the Bluegrass State is the least expensive place to own a home. This is largely a function of affordable home values. With a typical single-family home price of $255,800, the 2% rule of thumb equates to $5,116. The other ongoing costs are average property taxes of $1,547 a year; average annual homeowners insurance costs of $1,380; average annual energy bills of $2,216; and average annual cable and internet costs of $1,300. » Arkansas. Arkansas is another place where ongoing costs stay in check thanks to modest home values. The median single-family sale price in March was $249,300, which means maintenance costs of $4,986 a year. In addition, homeowners in Arkansas typically pay average annual property taxes of $1,292, average annual energy bills of $2,309, and average annual homeowners' insurance of $1,805. The state also comes with average annual cable and internet costs of $1,300—the same as Kentucky. The total annual tab: $11,692. » Mississippi. Homeowners here may catch a break because of affordable pric- es. With a median single-family sales price of $242,500, maintenance comes out to $4,850 a year. The state's property taxes average just $1,380 per year, while annual energy bills average $2,263 and annual cable and internet costs average $1,410. Still, homeowners' insurance is pricier than average, at $1,978 a year. The total expense is $11,881. » Alabama. The picture here is similar to that in other affordable states: Alabama's median single-family sales price of $271,800 works out to estimated maintenance costs of $5,436. The state's annual property taxes aren't as high, at $1,075, but annual home- owners' insurance is above average, at $1,804. Meanwhile, annual cable and internet costs average $1,447, and annual energy bills average $2,497. » Indiana. Indiana's more affordable single-family median of $252,900 equates to annual maintenance costs of $5,058, and homeowners' insurance is just $1,185. Yearly, homeowners in the state pay an average of $2,063 in property taxes, $1,422 in cable and in- ternet costs, and $2,531 in energy bills. All in all, Hoosiers can expect $12,259 in hidden costs. Alaska, Texas, and Louisiana had the smallest percentage increases in hidden homeownership expenses from 2020 to 2024, with Alaska and Texas up 14% and Louisiana up 15%. While single-family homeowners in expensive states such as California, Hawaii, and New Jersey may pay more than $25,000 in annual ownership and maintenance fees, potential homebuy- ers can find better deals in lower-cost states including Arkansas, Kentucky, and Mississippi. Despite elevated mortgage rates and high home prices hindering American homebuyers nationwide, the American Dream is possible—it may just depend on the location.