Hidden Costs For NJ Homeowners Among Highest In Nation

The upfront costs of owning a home can easily be followed by tens of thousands of dollars in hidden costs that the average homeowner might not think about.

According to a new study by Bankrate, New Jersey ranks third-worst in the country for hidden housing costs beyond the initial purchase of the home. The Hidden Costs of Homeownership Study accounts for property taxes, homeowners insurance, utilities, internet and cable bills. A standard two percent of each state's median single-family home price was also used to account for average maintenance costs. All of the data was then adjusted for inflation using the Consumer Price Index.

The median home price in the United States in April 2025 hit $437,942, a 44 percent jump from just five years ago, according to Redfin. Mortgage rates are also double what they were five years ago. These higher values, however, are just the beginning of the drain on wallets in New Jersey and beyond to not only borrow, but also just keep up.

On average, the annual costs in 2025 associated with owning and maintaining a typical single-family home in the United States is $21,400 and are broken down as follows:

In New Jersey, this number jumps to $29,751 per year, behind only Hawaii and California in the national rankings.

Bankrate attributes half of the burden New Jerseyans face to their average of $10,485 in property taxes, which are the highest in the nation and more than double the national average. The Garden State is also fourth most expensive in energy and utility costs, amounting to $5,885 annually.

Take this against West Virginia, for example, the top of the group when it comes to lowest hidden costs. In the Mountain State, the property taxes are the cheapest in the country at just $1,063 per year. Homeowners insurance here follows that same trend, ranking fourth-lowest at just $1,009 annually.

Location

As part of a larger picture, the middle of the country consistently ranked towards the lower end of the list, due in part to their lower housing prices, utility bills and property taxes. The states along the East and West Coasts, with their higher home values, take more spots towards the top of the Bankrate rankings.

Location also plays a role when it comes to the rise in homeowners insurance premiums that is currently outpacing inflation, growing by 24 percent from 2021 to 2024. The more valuable a property, the more it costs for insurance, and the growing frequency of extreme weather devastation and natural disaster effects has kept the expenses growing.

Utilities

Utilities like gas and electric bills have increased by nearly 30 percent across the United States since 2021, and close to 40 percent since 2019, according to the U.S. Energy Administration. New Jersey knows the effects of a state like this quite well, as the state is currently in the middle of its deferred cost period for the skyrocketing energy bills this summer due to last year’s annual New Jersey Basic Generation Service (BGS) auction. The BGS determines what the providers pay for power from outside of New Jersey. The BPU said the rise in demand and a stressed power grid can also be blamed for the price rise.

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The routine maintenance, such as regular upkeep and "minor" fixes to a home, as the leading hidden homeownership cost is multi-layered, according to Bankrate. The general inflation is just the beginning.

Aging Housing Stock

The median age of a home in the United States is more than 40 years old. In 2023, the average cost to a homeowner per year of keeping their property afloat for houses built before 1980 rose by 76 percent, according to Harvard University's Joint Center for Housing Studies.

The older homes often force owners to upgrade when they really might only be "upkeeping" should it be a newer property they are dealing with. Harvard estimates that year-over-year spending for home renovation and repair will reach an estimated $526 billion by the first quarter of 2026.

Note: New York was excluded from the study due to data limitations.