{"id":189092,"date":"2025-02-17T15:18:37","date_gmt":"2025-02-17T21:18:37","guid":{"rendered":"https:\/\/www.artofmanliness.com\/?p=189092"},"modified":"2025-02-17T15:18:37","modified_gmt":"2025-02-17T21:18:37","slug":"phantom-homeownership-costs","status":"publish","type":"post","link":"https:\/\/www.artofmanliness.com\/lifestyle\/homeownership\/phantom-homeownership-costs\/","title":{"rendered":"Beware the Phantom Costs of Homeownership"},"content":{"rendered":"

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We’ve lived in our house for 14 years now. We love it. We’ve made many memories in it, and it’s served as the headquarters for the Art of Manliness. Our house is home for us.<\/p>\n

With that said, something I’ve learned as a homeowner during the past 14 years is that owning a home is pretty freaking expensive. And many of the expenses I’ve had to lay down cash for have been for things that weren’t even on my radar when Kate and I signed the mortgage.<\/p>\n

These extra, overlooked costs of owning a home are often called \u201cphantom costs.\u201d Phantom costs include things like maintenance and repair costs, rising property taxes, and insurance premiums. If you want to know the true <\/em>cost of homeownership, you\u2019ve got to take into account these hidden costs in addition to the more obvious ones.<\/p>\n

If you\u2019re thinking about buying a home, phantom costs definitely need to be on your radar as you decide whether to buy a home or continue renting. If you own a home, you need to know about them so you can budget for them.<\/p>\n

In today\u2019s post, we\u2019ll break down everything you need to know about phantom homeownership costs.<\/p>\n

What You’ll Pay in Phantom Homeownership Costs<\/h2>\n

There have always been phantom costs with homeownership. But in the past five years, they\u2019ve gotten significantly steeper. According to Bankrate.com<\/a>, the average homeowner now shells out $18,118 annually ($1,510 monthly) on property taxes, insurance, utilities, and maintenance. That’s a 26% jump from 2020, when these expenses averaged $14,428 annually.<\/p>\n

To put that in perspective, if you’re paying the national median mortgage payment of $2,256, these additional costs add another 67% to your homeownership-related expenses. Basically, to own a home in America today, you’ll likely have to pay expenses that are equivalent to buying a used car every year.<\/p>\n

While $18,118 is the average in annual phantom homeownership costs, they’ll vary due to where you live. According to that Bankrate study, here are the states with the highest yearly phantom homeownership costs:<\/p>\n

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  1. Hawaii: $29,015<\/li>\n
  2. California: $28,790<\/li>\n
  3. Massachusetts: $26,313<\/li>\n
  4. New Jersey: $25,573<\/li>\n
  5. Connecticut: $23,515<\/li>\n<\/ol>\n

    And here are the states with the lowest:<\/p>\n

      \n
    1. Kentucky: $11,559<\/li>\n
    2. Arkansas: $11,692<\/li>\n
    3. Mississippi: $11,881<\/li>\n
    4. Alabama: $12,258<\/li>\n
    5. Indiana: $12,259<\/li>\n<\/ol>\n

      Older Homes Mean More Phantom Ownership Costs<\/h2>\n

      One factor making phantom costs even steeper is the increasing age of America’s housing stock. According to the U.S. Census Bureau, the median age of owner-occupied homes is about 40 years old. That’s a lot of aging roofs, worn-out HVAC systems, and creaky appliances waiting to fail.<\/p>\n

      Our home is nearly 40 years old, and while it’s in pretty good condition, it’s at the point in its lifecycle where things are wearing out and need to be replaced. Most of our phantom costs have come from replacing and repairing things. Here’s a rundown of some of the repairs I’ve had to fork over money for during the past 14 years:<\/p>\n