Unfortunately for first-time buyers, homeownership doesn’t start and end with paying the mortgage each month.
Homeowners spend an average $9,080 per year on often-forgotten and underestimated housing costs, according to new analysis from Zillow and service site Thumbtack.
CNBC reports that these costs include property taxes, maintenance, insurance, and utilities. New homeowners that were formerly renters may not even know that they have to pay water and sewer bills every month.
Hidden costs can be especially dangerous given buyers' tendency to overspend. Nearly 4 in 10 first-time buyers exceed their budget, per Zillow.
CNBC found that the most expensive markets had the highest hidden costs of ownership. Homeowners in San Francisco, for example, may have to shell out an extra $16,290 toward utilities, taxes, and maintenance. Residents of Boston, San Diego, and Los Angeles spend, on average, more than $12,000 a year on overlooked housing costs.