3 Key Things to Know About the Costs of Homeownership

Buying your first home is a major milestone in life. It brings plenty of joy and excitement—along with a deeper understanding of the true costs of homeownership, which extend far beyond your monthly mortgage.

Homeownership is a big achievement, but it does come with many little surprises that you can start preparing for now. “Homeownership is a milestone—but the best way to handle the surprises is to plan ahead, one small step at a time,” says Synchrony’s Chief Marketing Officer & Senior Vice President of Home & Auto, Patrice Boone.

In fact, Synchrony’s Lifetime of Home Care study found that nearly 75% of homeowners have experienced an unexpected repair requiring immediate attention, and 40% report spending more than $3,000 on emergency fixes. Understanding the broader cost landscape can help you plan with greater clarity and confidence.

Here are some recommendations to plan and budget for beyond your mortgage to help you spend more time enjoying life in your home and less time stressing about homeownership.

1. Understand Common Hidden Homeownership Costs

Remember when your dishwasher broke as a renter? The wait was annoying, but at least the replacement was free. As a homeowner, that's your responsibility now — each repair, every expense, often arriving out of thin air.

One smart strategy? Think about costs over the long term.

The Lifetime of Home Care study indicates that many homeowners underestimate long-term home maintenance expenses and the full lifetime cost of maintaining their homes. In fact, while homeowners often expect to spend around $3,000 annually on upkeep, long-term costs can add up significantly over time. Planning early helps smooth those expenses.

Here are a few common costs to research and budget for:

• Property taxes and local utilities: Check with your municipality on how to calculate and pay these amounts, which might cover things like water and sewer as well as other services.
• Home insurance: Shop around multiple providers to get the best rates, and be aware at renewal time that you might be in for some sticker shock. Home insurance premiums rose 34% between 2017 and 2023 and are continuing to go up, fueled in large part by the effects of climate change.
• Homeowners association fees (if applicable): Like home insurance, your local HOA fees are both predictable (in that you know they're coming) and uncertain (in that they might go up).
• HVAC maintenance: Getting your home's heating and cooling systems regularly maintained helps keep them running properly and can keep them running longer. Appliances can be another significant expense — while a microwave may cost around $100, a new, top-of-the-line refrigerator could cost more than $10,000.
• Plumbing and sewers: From the decaying grout in your showers and sinks to running toilets and basement sewer backups, maintenance and repairs are inevitable within these important systems. Consider setting aside emergency funds or adding riders to your homeowner’s insurance that could help you cover the cost of major expenses in this area.
• Roof and gutters: If they're not working optimally, you risk water damage and more. Keep up with cleaning and maintenance and be aware of the age of your roof and when it might need replacing.
• Yard work: Gardening, lawn maintenance, leaf and snow removal (depending on your area) all add up. That snowblower or ride-on lawnmower might be a big expense up-front, but it could save you both time and money in the long run.

2. Monitor Energy and Water Efficiency

Understanding your home's energy usage can be tricky — previous owners' bills won't tell the whole story, and costs are rising. That first utility bill from a cold winter or hot summer can be an unpleasant surprise, and you can only adjust your clothing so much. Many factors go into how much energy you use, for heating, cooling and everything else, such as hot water, lighting and running your fridge and stove.

Rising utility costs are one of the most frequently cited ongoing homeowner expenses in recent surveys, according to the study. Proactive efficiency improvements can make a measurable difference over time.

READ MORE: 15 Tips to Save on Electric Bills During the Winter

Here are a few things you can try to reduce your spend on utilities and stay comfortable in your home:

• Heating/cooling: One way to cut your bills is to reduce your usage with smart thermostats. If replacing old windows and doors isn't in the budget, use draft socks, weatherstripping and heavy curtains for a quick fix. Even your yard can help — well-placed trees can reduce heating and cooling costs, making nature one of the best energy savers around.
• Water: Watch for leaks, turn off taps and monitor sprinkler use. You can even save on water by planting water-wise wildflowers for pollinators rather than a traditional grass lawn.
• Electricity: LED lighting and energy-efficient appliances can help keep usage (and costs) down, as can that old-fashioned trick of turning things off when you're not using them. If you're prioritizing upgrades, focusing on projects that offer strong everyday impact and long-term value can help you budget more confidently over time. Experiment with your AC thermostat, too — keeping the house a little warmer in summer could save you big bucks.

3. Plan for Unexpected Expenses

They say there are only two sure things in this world: death and taxes. We might add a third, which is that something in your house will inevitably break. Probably it will be multiple things, and possibly all at once. That's one reason it's so important to have an emergency fund in place — it's hard to plan for surprises.

Before committing to a renovation, it can also help to research typical project ranges and compare at least three quotes. In the Lifetime of Home Care study, more than 90% of homeowners report having at least one repair need at any given time, according to recent research. Building a maintenance buffer into your financial plan can help reduce stress when those moments arise.

But saving for a large unplanned expense is only one part of being a prepared homeowner. Much like seeing your doctor for preventative care to treat minor issues before they progress, regular home maintenance can help prevent many larger-scale disasters, saving money long-term and making it crucial to stay on top of your to-do list. “Routine maintenance is preventative care for your home—small checkups today can help avoid big repair bills tomorrow,” says Boone.

Gutter cleaning, HVAC servicing and sealing cracks may seem dull, but when it comes to your home's structure, boredom is better than costly surprises. If you're new to this and need guidance, consider hiring an expert, such as a home inspector, to help you create a maintenance checklist. And when it comes to that to-do list, there's always the question of DIY-ing it versus hiring a pro. DIY isn't always cheaper, especially if you get something wrong. The cost of buying specialized tools alone can tip the scales, and then there's the question of safety. Even cleaning gutters can be quite risky if you're several stories up.

On the other hand, professionals don't always do a better job. Take painting: the pros may work fast, but you might care more about precision than speed. Ultimately, it's about balancing cost, time and skill for each project — and staying on top of your home's health as much as you can.

READ MORE: 12 Ways to Save on Home Renovation Costs

The Emotional Side of Home Ownership

Homeownership can feel like an expensive slog — and sometimes, those costs are simply unavoidable. But that's just one side of the story.

Yes, renovations and decor changes can be chaotic, but they’re also deeply rewarding — especially when your space begins to feel unmistakably yours. But not every reset has to involve construction — small changes like a deep clean, decluttering or rethinking room functionality can meaningfully shift how your home feels day to day. Losing a Saturday morning to studying DIY videos might feel frustrating at first, but the pride of fixing something yourself makes it time well spent.

Homeownership comes with responsibilities, but the sense of accomplishment — and the joy of making a house a home, your home — may make it all worth it. When it comes down to it, there's often a feeling of freedom that can come with owning your own home that's hard to beat.

Embracing Wise Ownership Insights

Owning a home is a journey, and it's full of learning curves. Planning, budgeting and rolling with the unexpected are essential skills to have with you along the way. Because at the end of the day, you're not just maintaining a house — you're creating a home and life within that home. It's where you make memories: the family dinners, the lazy Sundays on the couch, the raucous game nights with friends. It's a space where life happens — your life.

Find Professional Help Near You

Choosing a licensed contractor can help protect your home, your time and your long-term maintenance planning. If you're ready to connect with licensed professionals in your area, you can explore Synchrony’s Home Improvement Locator to find contractors near you.