The True Cost of Homeownership

Maintenance, property taxes, insurance, HOA fees, and repairs average 1-4% of home value annually, costs renters avoid and that typical buy-versus-rent calculators underestimate by up to 2% per year. For a $400,000 home, that means $4,000-$16,000 annually — often 50% more than expected. Compared to the rent-and-invest strategy in #4, these costs reduce net return on ownership, making renting with disciplined investment more predictable.