10 states with the least affordable homeownership costs, based on income
Hidden homeownership costs vary by state, from as low $12,000 to as high as $34,000. But just because a state has a higher total cost doesn’t mean it’s unaffordable, as higher household incomes can offset some of the burden. For example, Virginia and Montana both pay roughly $19,600 in hidden costs, but in Montana, those costs account for 28% of the typical household income, while in Virginia, they’re equivalent to only 22% of the typical household income.[4]
In some states, the gap between incomes and hidden costs is especially wide, making non-mortgage costs significantly less affordable.
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1. Florida
Share of typical household income required to cover costs: 37%
Average annual homeownership costs: $27,132
Typical annual household income: $73,311
Average annual home insurance cost: $8,491
Florida ranks last for homeownership affordability, with average hidden costs accounting for 37% of the state’s median household income ($73,311). Florida households earn about $4,000 less than the median American household, but residents pay about $6,000 over the national average in homeownership costs.
Florida is also the most expensive state for home insurance, with an average annual cost of $8,491, due in part to the state’s high risk of extreme weather. This is based on the state’s average dwelling coverage of $400,000, a $1,000 deductible, and a separate 5% hurricane and wind deductible.
In Miami, the hidden cost of homeownership is as high as $43,014, including $17,698 for home insurance coverage and $7,770 in property taxes.
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2. Hawaii
Share of typical household income required to cover costs: 36%
Average annual homeownership costs: $34,739
Typical annual household income: $95,322
Average annual home insurance cost: $2,578
Homeowners in Hawaii pay the most for utilities and maintenance. Hawaiian homeowners spend nearly double the national average on utilities ($10,603 vs. $5,465), despite consuming less energy than others in most states. This is because each island has its own electrical grid, with most generating electricity through imported oil, which is expensive compared to other energy sources.[5]
Additionally, estimated maintenance costs are the highest for Hawaii homeowners, at $16,680 annually.
But insurance is a different story, as Hawaii residents pay an average of $2,578 for home insurance and $770 for flood insurance each year — both lower than the national average.
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3. California
Share of typical household income required to cover costs: 36%
Average annual homeownership costs: $34,061
Typical annual household income: $95,521
Average annual home insurance cost: $2,384
California homeowners pay above the national average for maintenance, property taxes, flood insurance, and utility costs. The estimated annual household maintenance spending, based on 2% of the typical home value, adds up to $15,722 — the second-highest rate of any state. California homeowners also pay the sixth-highest property taxes ($7,127) and seventh-highest utility costs ($7,876).
One bright spot for the state is lower-than-average home insurance costs ($2,384). But those costs are on the rise, as insurers respond to heightened wildfire risks.
In Los Angeles, where the typical home value is $970,592, hidden homeowner costs reach $40,052, including an estimated $19,412 on maintenance.
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4. New York
Share of typical household income required to cover costs: 35%
Average annual homeownership costs: $28,637
Typical annual household income: $82,095
Average annual home insurance cost: $1,985
Affording day-to-day homeownership costs is a bigger burden in New York than in most states. The average annual cost of property taxes in the state is $7,821, nearly double the national average ($4,300).
Fortunately, home insurance costs in the state are about $1,000 cheaper for the typical New York home ($1,985) compared to the U.S. average of $3,017.
In New York City, the hidden cost of homeownership is $38,455, including $16,179 in estimated maintenance costs and $11,294 in property taxes.
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5. Massachusetts
Share of typical household income required to cover costs: 34%
Average annual homeownership costs: $33,659
Typical annual household income: $99,858
Average annual home insurance cost: $2,139
Massachusetts is one of the most difficult states for managing homeownership costs. It ranks in the top five nationally for the most expensive maintenance costs, utility costs, and property taxes. Although it has the highest median household income of any state ($99,858), homeowners may allocate more than a third of that income toward homeownership costs (34%).
On the bright side, homeowners in Massachusetts pay about $900 less for home insurance than the national average each year ($2,139 vs. $3,017).
In Boston, hidden homeownership costs total $38,745, including an average annual property tax bill of $9,413.
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6. Rhode Island
Share of typical household income required to cover costs: 33%
Average annual homeownership costs: $27,877
Typical annual household income: $84,972
Average annual home insurance cost: $2,616
Rhode Island residents, like others in New England, pay some of the highest homeownership costs in the country. Homeowners pay an average of $8,092 in annual utility costs — about 50% above the national average — driven in part by a reliance on imported fuels.[6] Rhode Island also has the sixth-highest property taxes of any state, averaging $6,200 annually.
In Providence, the hidden cost of homeownership is slightly lower than the statewide average, at $26,343, largely due to lower average home values.
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7. Connecticut
Share of typical household income required to cover costs: 33%
Average annual homeownership costs: $29,777
Typical annual household income: $91,665
Average annual home insurance cost: $2,489
Connecticut households earn 18% more than the median U.S. household but pay 41% more in homeownership costs. The typical property tax bill is $8,690 — the second-highest in the country and double the national average ($4,300). Connecticut also has the third most expensive flood insurance ($1,426) and the fourth most expensive utility costs ($8,452).
Unlike in most states, Connecticut’s biggest city, Hartford, has lower average homeownership costs ($23,740) than the state as a whole. Hartford has lower average property values, which often means cheaper property taxes, maintenance costs, and insurance premiums.
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8. Maine
Share of typical household income required to cover costs: 32%
Average annual homeownership costs: $23,426
Typical annual household income: $73,733
Average annual home insurance cost: $1,521
Maine benefits from low home insurance costs, about half the national average, but suffers from high costs in other aspects. Residents of the Pine Tree State pay the sixth-highest utility costs nationwide, at $7,959 per year, and the seventh-highest flood insurance costs, at $1,284 annually.
Although the state is relatively insulated from most natural disasters, storm-related flooding remains a threat. In December 2023, heavy rains caused flooding across multiple states, including Maine, and resulted in roughly $1.3 billion in damage.[7]
In Portland, the hidden cost of homeownership is about $5,000 higher, at $28,469. The city’s higher home values contribute to residents paying more in property taxes, maintenance costs, and home insurance premiums.
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9. New Jersey
Share of typical household income required to cover costs: 30%
Average annual homeownership costs: $30,424
Typical annual household income: $99,781
Average annual home insurance cost: $1,457
New Jersey households have the second-highest median income in the country, but they allocate about 30% of it toward non-mortgage homeownership costs. At $10,134 each year, New Jersey has the highest average property tax bill for homeowners. That is 136% higher than the national average ($4,300). On the plus side, Garden State households pay about half of the typical annual cost for home insurance ($1,457 vs. $3,017).
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10. Vermont
Share of typical household income required to cover costs: 30%
Average annual homeownership costs: $24,424
Typical annual household income: $81,211
Average annual home insurance cost: $993
Vermont households spend more than $24,000 annually on hidden homeownership costs. The state ranks among the top 10 nationally for most costly property taxes ($6,994) and utility expenses ($6,756).
Homeowners in Vermont also pay the nation’s second-highest flood insurance costs ($1,612) due to the state’s higher flood risk. In July 2023, storms brought up to 8 inches of rain to the region, causing flooding that damaged thousands of homes in the state capital of Montpelier.[8]
Apart from flooding, the state sees a relatively low number of severe weather events. That explains why Vermont homeowners pay the lowest home insurance premiums of any state, averaging $993 per year.
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