Owning a home is a significant life achievement. While it gives you a place to raise a family and make lifelong memories, it’s expensive. The listing cost for the house isn’t the only price you’ll need to pay because there are many other “hidden” costs to consider. According to a study by Bankrate, hidden costs include property taxes, home maintenance insurance, homeowners insurance, and bills like internet and cable. People typically overlook these essential costs when budgeting for house expenses, and with the cost of living in America rising, it’s becoming more difficult to pay them.

Why are Things So Expensive?

Many factors contribute to raised prices. In 40 years, from 1984 to 2024, inflation has increased by 308% in the United States. According to Bankrate, 55% of workers believe their income could not keep up with household expenses due to inflation. The rising cost In Montana, a 68-year-old man’s property taxes increased by 893% over a few years, forcing him to continue working year-round just to afford his home. 

Inflation and taxes are rising more slowly than salaries, making it increasingly difficult for people to cover their expenses. Therefore, it’s extremely important to consider the hidden costs of your current or next property.

Five States With the Most Expensive Hidden Costs

Source: Bankrate’s hidden expenses study

Hawaii

Yearly cost: $29,015

Monthly cost: $2,418

California 

Yearly cost: $28,790

Monthly cost: $2,399

Massachusetts

Yearly cost: $26,313

Monthly cost: $$2,193

New Jersey

Yearly cost: $25,573

Monthly cost: $2,131

Connecticut

Yearly cost: $23,515

Monthly cost: $1,960

Five States With the Least Expensive Hidden Costs

Source: Bankrate’s hidden expenses study

Kentucky 

Yearly cost: $11,559

Monthly cost: $963

Arkansas

Yearly cost: $11,692

Monthly cost: $974

Mississippi

Yearly cost: $11,881

Monthly cost: $990

Alabama

Yearly cost: $12,258

Monthly cost: $1,021

Indiana

Yearly cost: $12,259

Monthly cost: $1,022

Freebies

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8 Steps to Buying Out of State Properties- https://www.outofstatemoney.com/long-distance-investing-guide

The Remote Landlord’s Toolkit- https://www.outofstatemoney.com/remotelandlordtoolkit

The Creative Financing Playbook- https://www.outofstatemoney.com/creativefinancingplaybook