Expert tips for lowering your monthly housing costs — including utilities, taxes, and insurance

As a homeowner, you know the financial hurdles aren’t just about the mortgage payment. Owning a home also comes with nearly $16,000 in annual housing costs, on average, including homeowners’ insurance, taxes, and maintenance.

That equates to an additional $1,325 a month in homeownership costs — on top of the mortgage payment — according to a Zillow and Thumbtack analysis. Maintenance was the highest annual cost:

Of course, these housing costs are even higher in expensive cities, such as New York ($24,000 annually) and San Francisco ($22,000), according to the study.

The good news is that there are steps you can take as a homeowner to lower these expenses and help homeownership fit into your budget. Read on for expert-backed tips.

Ryann Brier, a real estate agent in Grand Rapids, Mich., said that preparing your home for seasonal changes can help you save on energy bills.

“Seal the leaks in the home. Drafts in your home will make you throw money out the window. Get some caulk and a simple weatherproofing checklist to get prepared,” she added. “Changing your HVAC filters regularly saves money.”

Restricted airflow makes your furnace or air conditioning work harder, which increases your utility bill and the risk of damage, Brier noted.

Naeem Turner-Bandele, an energy solutions consultant in Indiana, recommends that homeowners looking to identify electricity bill savings buy a basic watt meter or an energy-monitoring smart plug for about $20 from Amazon, Walmart, or other retailers.

“You can plug your appliances into these meters to see the exact monthly dollar cost of running specific household appliances and devices — from your washing machine to your TV — based on your actual electricity rate,” he added. That might allow you to adjust usage by modifying your habits, putting a timer on a device, or replacing an inefficient appliance to save money.

Kortney Paul of Ideal Partners in Dallas-Fort Worth, Texas, recommends a smart thermostat to monitor your HVAC system.

“A basic smart thermostat can be found for under $150,” Paul said. “Many even have intuitive features that learn your habits and preferences, automatically adjusting to improve both comfort and system efficiency.”

For low- to moderate-income families, federal rebates are available for significant energy-saving home upgrades.

Two new programs are rolling out nationally: the Home Energy Performance-Based Whole-House Rebates Program (HOMES) and the Home Electrification and Appliance Rebates (HEAR).

HOMES can help homeowners cover up to 100% of the cost of energy-saving improvements, depending on household income. “This can help families upgrade heating and cooling systems, water heating systems, lighting, insulation, and more,” Turner-Bandele said.

HEAR provides low- to moderate-income families with up to $14,000 to install electric appliances and make other electrical upgrades. “By leveraging these rebates, homeowners can ease major financial burdens and make improvements that can reduce monthly utility bills for years to come,” he added.

State energy offices can provide details.

If you are having difficulty paying your monthly utility bills, especially during high-demand winter heating and summer cooling months, the Low Income Home Energy Assistance Program (LIHEAP) may be of assistance. The program is federally funded but available through state and local community action agencies.

The process can take 30 to 45 days to complete, so you may want to plan ahead if you’ve had financial challenges in the past, Turner-Bandele noted.

The cost of homeowners’ insurance has soared 48% in the past five years, according to the Zillow/Thumbtack report. The best way to reduce your home insurance costs is to regularly compare your current rate with other insurance companies.

Some insurance savings tips:

Raise your deductible. The Insurance Information Institute says increasing your deductible from $500 to $1,000 could save you 25% on your premium payments.

Ask for discounts. The Texas Department of Insurance says some companies will offer rate discounts if you have other policies with the company (such as home and car), haven’t filed a claim for the past few years, or have smoke alarms or a security system.

Improve your credit score. The TDI says that if your credit score improves, you may qualify for a better rate.

A small number of states are considering the elimination of property taxes, according to Realtor.com. But don’t hold your breath; the Tax Foundation says that proposals abolishing property taxes would “create more problems than they solve.”

“Property taxes are the primary tool for financing local governments and the single largest source of state and local revenue in the U.S., helping fund schools, roads, police, and other services,” the nonprofit said in an analysis.

Still, there are ways to ensure you aren’t paying more than your fair share. Brier advises homeowners to carefully review their property tax assessments each year.

“If you need help, ask a professional, but you can do these three things yourself,” Brier said, noting these tips:

Fight for an appeal if you feel the assessment is incorrect.

Verify the data from each year.

Look for any discrepancies between years.

Brier reminds homeowners that emergency repairs are much more expensive than preventative maintenance. Being proactive can help you avoid costly surprise expenses. She suggests:

Regularly cleaning out gutters and downspouts.

Inspecting the roof and the attic space on occasion.

Routinely checking under all the sinks. You don’t want any leaks to go unnoticed and cause long-term damage.

The EPA also recommends comparing your current water bill to the same month of the previous year. If the latest bill is significantly higher, you may have a hidden water leak in your home.

The National Association of Home Builders offers a printable checklist of routine home maintenance to help you organize a home care plan.

Additionally, consider these four potentially significant ways to lower your monthly housing costs: