Analysis Finds NYC Homebuyers Face the Highest Hidden Costs in the U.S.

If you’ve ever thought the cost of buying a home in NYC was just about the price tag and monthly mortgage, think again. A new national analysis highlights one of the biggest affordability pitfalls for would-be homeowners in America — hidden costs — and New York City tops the list.

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According to a recent study from Zillow and Thumbtack, hidden costs of homeownership (expenses beyond your mortgage payment such as property taxes, maintenance, and insurance) now add up to more than $24,000 per year in New York City. That’s substantially higher than the U.S. average of approximately $16,000 a year and the highest of any major U.S. metropolitan area.

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What Counts as a “Hidden Cost”?

Most buyers focus on the down payment, sales price, and monthly mortgage, but the real financial picture only becomes clear once you factor in:

• Property taxes – Nearly $11,000+ annually in NYC
• Maintenance and repairs – Over $11,500 on average
• Homeowners insurance – Approaching $2,000 a year

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Why NYC Leads the Nation

Unlike many other cities where property tax or insurance might be lower, the New York City housing market combines:

• High service and contractor rates, which drive up maintenance costs.
• Expensive tax assessments and levies, especially in high-value Manhattan, Brooklyn, and Queens neighborhoods.
• Older building stock, which tends to require more frequent and costly repairs.
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The result is a perfect storm where the hidden costs often rival or exceed the mortgage payment itself, especially for co-ops and condos where maintenance and common charges are already substantial.

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What Buyers in NYC Should Do

Experts recommend that buyers in the NYC area:

• Build a comprehensive budget that includes taxes, insurance, and routine maintenance.
• Ask detailed questions about building reserves and upcoming assessments, especially in older co-ops. Local boards sometimes require large capital contributions for major repairs.
• Work with experienced NYC real estate agents and inspectors who understand the unique costs of urban property ownership.

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Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.