Tens of thousands of Americans still dream of buying a home, even during the current affordability crunch—but for the majority of owners, the aspiration has soured.

Over two-thirds (69 percent) of American homeowners have regrets about their home purchases due to the financial strain of owning a property and the unexpected costs related to it, according to a recent survey by Real Estate Witch.

Nearly half (48 percent) said they’d have a different approach to the homebuying process had they known the actual cost of maintaining their home. Newsweek contacted Real Estate Witch for comment by email on Friday morning, outside of standard working hours.

Why It Matters

Homeownership has long been viewed as a crucial piece of the American dream, but a combination of factors has made this goal unreachable for many. A chronic lack of inventory—due to the country under-building following the 2007-08 crisis, pent-up demand, high mortgage rates, and rising home prices have pushed many aspiring first-time homebuyers out of the market.

Meanwhile, homeowners are being hit by a recent surge in property insurance premiums and homeowners association (HOA) fees. The U.S. housing affordability crisis has taken center stage during the 2024 presidential election, and Donald Trump has promised to increase inventory and put homeownership within reach of Americans.

What to Know

The survey conducted by free-agent matching service Clever Real Estate, which was acquired by Real Estate Witch in 2020, found that in 2025 the typical American homeowner will spend an average of $24,529 a year—or $2,044 a month—on their home in addition to their mortgage payment for utilities, repairs, maintenance, property taxes, and homeowners insurance.

For those who are part of a homeowners association, these costs are even higher: a homeowner in a HOA will pay an average $3,077 extra a year, according to Real Estate Witch, for a total of $27,606.

For a majority of American homeowners, the cost of ownership comes somewhat as a surprise: a majority of 81 percent of the 1,000 American homeowners surveyed said costs were higher than they expected before buying their home. Nearly half (44 percent) believe it’s easier to be a renter than a homeowner.

This is particularly true for millennials (born between 1981 and 1996), many of whom are likely to have climbed on the property ladder only in recent years. Almost one in four millennial homeowners (23 percent) said the costs of homeownership have made them want to go back to renting—more than double the percentage of boomers (born between 1946 and 1964) feeling the same. The number was even higher for Gen X, with 25 percent wanting to go back to renting.

The percentage of American owners disillusioned with homeownership has grown from last year, when 67 percent of respondents to the Real Estate Witch’s 2024 survey said they had regrets about their home purchases. The total cost of owning a home has also grown for the average American owner: last year, it was $17,958.

What Are Homeowners Spending On?

The highest expenses faced by American homeowners beside their mortgage payment are utilities, Real Estate Witch found.

The total cost of utilities in a year is an estimated $7,319; maintenance is $6,087; renovations are $5,672; property taxes are $3,057; and homeowners insurance is $2,304. Homeowners association fees are, as mentioned above, an estimated $3,077 a year.

The survey found that American homeowners are struggling with each of these expenses. A majority of 81 percent are worried about the cost of homeownership, including 29 percent who said their biggest concern is unexpected maintenance or repairs, 23 percent who say their biggest concern is rising property taxes, and 14 percent who say their biggest concern is rising homeowners insurance costs.

Almost half of owners (46 percent) said they don’t feel their property taxes accurately reflect their home’s value. Another 46 percent admitted they don’t actively budget for unexpected repairs, and the same percentage of owners said they did not accurately estimate the cost of repairs and improvements before buying.

A majority of 59 percent would not actually be able to cover a $5,000 emergency home repair without going into credit card debt.

Many blame the seller for hiding the real cost of maintenance for the property they bought. The previous owner, according to more than one in three (36 percent) homeowners, wasn’t up front about the cost of maintenance. The same percentage believe the previous owner cut corners when it came to maintenance.

The cost of homeowners insurance, which in many states is surging due to the growing risk of catastrophic extreme weather events, is also a cause of concern for many. More than half (51 percent) are stressed by the rising cost of homeowners insurance, with one in eight (13 percent) being concerned about losing coverage on their property.

What’s Next

The cost of homeownership might send many American homeowners back into the rental market—especially millennials. The real truth highlighted by these findings, however, is that owning a home remains too expensive even for those lucky ones that manage to afford to buy one.

A majority of 56 percent of owners surveyed by Clever believe owning a home is not attainable for the average American.

Last modified: January 31, 2025