Almost two-thirds of Americans considered middle class have said they are facing economic hardship

Almost two-thirds of Americans considered middle class have said they are facing economic hardship.

The cost of owning a home in the US has surged by 26% since 2020, driven by rising expenses such as taxes, insurance, and utilities during a period of high inflation.

According to Bankrate, a personal finance website, the average annual cost of owning and maintaining a typical single-family home — excluding mortgage payments — reached $18,118 in March. This equates to $1,510 per month, roughly $300 more than four years ago, when the pandemic lockdowns began.

This calculation is based on Redfin’s median sales price for March, which was $436,291.

“It was really eye-opening to see just how much it costs to maintain a home,” said Jeff Ostrowski, an analyst at Bankrate. “Until you own a house, it doesn’t dawn on you how much money you’re throwing into the house every month and year.”

Bankrate's analysis included property taxes, home insurance, energy costs, internet and cable bills, and 2% of the sales price for maintenance — expenses that many buyers often underestimate.

Home maintenance accounted for the largest share of ownership costs in Bankrate’s findings. Consequently, states where home prices rose significantly during the pandemic experienced bigger percentage jumps in overall expenses. Property taxes were the second-largest expense in high-tax states such as New Jersey and Connecticut, while energy bills took the second spot in other states.

Over the past four years, homeowners in Utah faced the biggest cost increases, with expenses rising 44%. Idaho followed at 39%, and Hawaii at 38%. Alaska and Texas saw the smallest increases, with costs rising 14%. Annual expenses varied widely, from $11,559 in Kentucky to $29,015 in Hawaii, where the typical single-family home price was $993,000.

Ostrowski noted that the totals might be overstated in some cases, particularly for owners of newly built homes that require fewer repairs. However, he emphasized that the figures are still useful for buyers to consider.

“It’s certainly better to be over-prepared and have some extra money sitting in a high-yield savings account,” he said, “as opposed to under-prepared and scrambling.”