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
Free Out of State Investing Training- https://www.outofstatemoney.com/
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