US homeowners are sinking $21K a year into their homes — thanks to these invisible expenses. Are you doing the same?

The study found that American homeowners pay an average of $4,494 every year in utility bills alone. If you include cable and internet (which some rentals also provide) that number goes up by another $1,515.

While there isn’t much you can do to reduce the price charged for utilities, many utility providers offer discount pricing during non-peak hours. If this is available to you, set reminders to do utility-intensive tasks like cooking, dishwashing and laundry during those hours. Typically, these off-peak hours are during the evening, weekends or holidays.

You can also call cable and internet providers to ask for the best deal currently available.

In many cases, the introductory price they offered during sign up quietly turns into a much higher fee after a year, but if you call them up again and ask to cut services, they will usually offer the promo rate again. Make an appointment in your calendar to do this yearly to avoid these sneaky increases.

If they refuse, there are many other providers who will be eager to give you a better offer. As always, shopping around can net you some good savings.

While the previous invisible expenses are notable, the most significant expenses homeowners experience are maintenance and repairs.

While you likely assumed there would inevitably be some repairs needed down the line, these costs usually end up occurring faster and more frequently than many anticipate.

Bankrate’s study found the average homeowner spends $8,808 on maintenance every year.

And if your home was built before 1980, this number could be even higher, as significant upgrades will be necessary. The study noted that in 2023, homeowners with pre-1980 homes spent 76% more on maintenance than those with newer homes.

If you’re new to home ownership, you might be feeling this pinch already, but the last thing you should do is panic. Get to work on building out your emergency fund as soon as you can. Often, this involves parking your cash in a high interest savings account so you have the liquidity to quickly respond to repairs.

All these added costs make it clear: Despite all the hubbub around building equity and fearmongering around renting, owning the home you live in isn’t always the better financial option.

In fact, in the most expensive cities, when you break down the math between renting and investing the savings for retirement, or owning and being house poor — it is often the renter who comes out ahead in the future. Finance experts like Ramit Sethi regularly point out that prevailing wisdom around home ownership being the key to wealth building is a lie.

That said, you may not want the hassle or extra expenses of home ownership, but that doesn’t mean you should completely miss out on the gains that come from investing in property.

There are simple ways to enjoy the financial benefits of property ownership without the many downsides.

Platforms like Arrived offer access to shares of SEC-qualified investments in rental homes and vacation rentals, vetted for their appreciation and income potential.

Backed by world-class investors like Jeff Bezos, Arrived makes it simple to add real estate to your portfolio without buying a home.

With as little as a $100 initial investment, Arrived makes property investing for everyone — even long-term renters.

And if you’re curious about commercial property, accredited investors can try First National Realty Partners (FNRP).

With a minimum investment of $50,000, you can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart without lifting a finger. Thanks to triple net leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into potential returns.

Just answer a few questions to start browsing their available properties.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.