3 Ways to Lower Your Home Ownership Costs

One mistake real estate professionals regularly see is buyers focusing so much on qualifying for a home that they don't leave enough room in their budget for the realities of ownership.

Brian O'Connell

Published: 6/1/2026, 10:06:01 AM EDT

3 Ways to Lower Your Home Ownership Costs — The 70/20/10 strategy helps households build savings and control spending. (Vinnikava Viktoryia/Shutterstock)

Homeowners are increasingly getting squeezed by homeownership costs in 2026, and, at first glance, there doesn’t seem to be much they can do about it.

Data from Pearlscore, a data analysis firm, shows that the hidden costs of owning a home add $21,400 in 2026, with rising costs linked to property taxes, maintenance, utilities, and home insurance all combining to increase a homeowner’s price tag.

That’s a true financial burden, financial experts say, but that can be trimmed significantly, even for homeowners who have a fixed-rate mortgage that doesn’t change.

“One thing many people misunderstand about mortgage payments is that even if you have a low, fixed mortgage rate, the cost of homeownership will continue to rise,” Ashley Morgan, attorney and owner at Ashley F. Morgan Law, PC, told NTD News.

A fixed interest rate means you have the same principal and interest payment over the life of the loan, but the escrow can still change. That equation. “I regularly talk to homeowners who have fixed mortgage rates from 2 to 4 percent, but are currently struggling financially,” Morgan said. “The principal and interest of their mortgage payment may not have changed, but property taxes, homeowners insurance, utilities, maintenance costs, HOA fees, and repair costs have all increased significantly.”

Inflation, in particular, really hits homeowners in the wallet. “Being a homeowner means there will be some stability with the mortgage payment, but you need to plan for some adjustments in your budget,” Morgan advised. “Even when your mortgage payment is stable, other expenses associated with owning a home have become more expensive.”

Here’s How Homeowners Can Cut Costs

Even with stubborn inflation fueling home costs, home dwellers can curb those expenses, and maybe even more easily than they thought. Here are three ways to get the job done.

Save on insurance

When it comes to lowering homeownership costs, Morgan advises homeowners to first focus on the largest expenses.

“Insurance is one area where many people can save money,” she said. “I recommend periodically shopping homeowners and auto insurance together because rates can change significantly over time.” Morgan advises taking this action step every two or three years can keep the savings flowing.

Morgan also warns against lowering the amount of homeowners coverage they purchase to lower their payment.

“Lowering coverage can be very dangerous if there are issues in the future,” she said. “You have insurance to ensure you can make a repair if there is damage or are protected if someone is harmed on your property; failure to have sufficient insurance can result in you being responsible for expenses you cannot afford.” Instead of lowering policy coverage, Morgan advises increasing your policy’s deductible if there is an insurance claim.

Stay ahead of home repairs

One of the most effective ways to keep costs under control is staying ahead of maintenance.

"Homeowners who address small issues early can often avoid much larger expenses later," Jenna Hoyas, a licensed real estate agent at Douglas Ellman Real Estate, told NTD News. “Energy-efficient upgrades can also make a meaningful difference over time, particularly when utility costs are rising.”

"Every home requires ongoing maintenance, and those costs have become more expensive in recent years," Hoyas said. “A small leak, an aging HVAC system, or even deferred maintenance can quickly turn into a much larger expense,” she noted. “The homeowners who seem to navigate these challenges best are the ones who plan ahead and treat maintenance as part of the cost of ownership rather than an unexpected expense.”

Review your property taxes

Property tax assessments are another overlooked area.

“In some jurisdictions, homeowners can challenge assessments if they believe the value is inaccurate,” Morgan noted. “It will not work in every situation, but it can sometimes create meaningful savings. This can be especially useful if you are in an area with recently renovated or updated houses and you haven’t completed upgrades.”

Don’t Make This Home Ownership Cost Mistake

One mistake real estate professionals regularly see is buyers focusing so much on qualifying for a home that they don't leave enough room in their budget for the realities of ownership.

“Many people focus on what they can qualify for instead of what payment actually fits within their long-term financial plan,” Morgan said. “Lenders typically use gross numbers for budget calculations, which means it is not considering your taxes, retirement, health insurance, and other paycheck deductions in their analysis.”

A lender may approve a certain payment amount, but that doesn’t mean the payment leaves room for retirement savings, emergency savings, vacations, vehicle repairs, childcare costs, or normal life expenses. “Buying at the top of your cost qualification level is not typically recommended unless you have a unique situation or have an income that you are certain to increase in the near future,” Morgan added.

The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.