Blog

For homeowners in Milwaukee County—and especially fast-growing communities like Oak Creek—the monthly mortgage is only part of the story. A new analysis from Zillow and Thumbtack shows that the “hidden costs of homeownership” now total nearly $16,000 per year nationwide, a financial squeeze many Wisconsin homeowners are feeling firsthand.

While the average U.S. mortgage payment sits around $1,325 per month, the real pressure comes from everything wrapped around it: ongoing maintenance, rising insurance premiums, and property taxes that continue to creep higher. According to the report, the typical homeowner is now paying $10,946 per year in maintenance, $2,003 for homeowner’s insurance, and $3,030 in property taxes—costs that have jumped 4.7% in just one year, outpacing the 3.8% growth in household income.

Here in the Milwaukee metro area, that squeeze is familiar. Between aging housing stock in older neighborhoods and rapid development in places like Oak Creek, Franklin, and Muskego, homeowners are finding that routine upkeep is hitting their budgets harder than expected. Property taxes in southeastern Wisconsin have long been above the national average, and insurance rates have climbed as storms, roof claims, and lake-effect weather patterns become more frequent.

And while Wisconsin isn’t facing the extreme burdens seen in New York City, San Francisco, or Boston—where hidden costs top $20,000 per year—the local strain is still real. For first-time buyers trying to enter the market in Oak Creek or Bay View, these “extras” can be the deciding factor between buying and continuing to rent.

“Insurance costs are rising nearly twice as fast as homeowner incomes,” said Kara Ng, Zillow senior economist. “It’s not just a budget line item. It’s a barrier to entry for aspiring first-time buyers and for families already stretched thin. Buyers who are already facing affordability challenges in today’s market need to understand and budget for these less obvious expenses when calculating how much home they can truly afford.”

For Milwaukee-area families, the takeaway is simple: the mortgage is only the beginning. Whether you’re buying a starter home near Lake Michigan or moving into a new subdivision in Oak Creek, it’s crucial to factor in the often-overlooked expenses that can add hundreds of dollars a month to your real housing costs. In today’s market, financial planning around homeownership needs to be broader—and more realistic—than ever.