March 18, 2026
When most people think about buying a home, they think about two things: the price and the mortgage payment. And I get it — those are the big numbers. But one of the most important conversations I have with buyers is about everything else. The costs that don't show up in the listing price but absolutely show up in your bank account every single month.
A recent report highlighted just how much these costs have grown, and honestly, the numbers are worth paying attention to. Average homeowner insurance premiums have jumped 72% since 2019. Property taxes are up over 31% in that same period. And nearly 39% of homes on the market last year came with HOA fees attached. These aren't small line items anymore.
So let's break down what you're actually signing up for beyond the mortgage.
Homeowner's insurance is no longer the quiet, stable expense it used to be. Climate events have pushed insurers to raise premiums sharply or pull out of certain markets altogether. Even here in the Northeast, we've felt it. Some homeowners have seen double-digit percentage increases on their renewals year after year.
Property taxes move with home values, which means the run-up in prices over the last few years has pushed tax bills higher across the board. In New York especially, property taxes are not something to gloss over. Depending on where you're buying on Long Island, they can vary dramatically from one town to the next and add thousands to your annual costs.
HOA fees have become increasingly common and can range anywhere from $100 to several hundred dollars a month depending on the community. Before you fall in love with a property, always ask whether there's an HOA and what the fees cover. Some are reasonable and include real value. Others, not so much.
Maintenance and repairs are the wildcard. The general rule of thumb is to budget about 1% of your home's value per year for upkeep. On a $500,000 home, that's $5,000 a year, or roughly $400 a month. Things break. Roofs age. HVAC systems give out. You want to have a cushion ready so a surprise repair doesn't derail your finances.
Let's say you've done the math and your mortgage payment is $2,500 a month. Comfortable, right? But once you layer in taxes, insurance, HOA fees, and a maintenance reserve, your real monthly cost of ownership could easily be $3,200 to $3,500 or more. That's a significant gap, and it's one that catches buyers off guard more often than you'd think.
This isn't meant to scare you. Homeownership is still one of the best long-term financial moves you can make — the same period that saw these cost increases also saw the typical homeowner's equity grow by over 40%. But going in with a clear, complete picture of what ownership costs is what separates buyers who thrive from buyers who get stretched thin.
Property taxes on Long Island are among the highest in the country. It's not a secret, but it's something buyers who are new to the area often underestimate. A home that looks affordable at first glance can tell a very different story once you factor in the tax bill. I always make sure my buyers know what they're looking at before we get serious about any property.
Insurance is also worth shopping carefully here. Coastal proximity, flood zones, and the age of a home can all affect what you'll pay. Getting an insurance quote early in the process, not after you're under contract, is a habit I encourage every buyer to develop.
The mortgage payment is what gets you in the door. Everything else is what keeps you there. Make sure you're budgeting for the full picture, not just the headline number.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
