The Real Cost of Your First Year as a Homeowner

February 15, 2026 · LifeStarter Team

You saved for the down payment. You survived the inspection. You signed approximately 400 documents at closing. Congratulations — you’re a homeowner!

Now comes the part nobody warned you about: the first year is expensive.

Not “a little more than renting” expensive. We’re talking thousands of dollars in costs that catch new homeowners completely off guard.

The Numbers Nobody Tells You

According to recent surveys, the average new homeowner spends $12,000-$17,000 in unexpected costs during their first year — on top of their mortgage payment. Here’s where it goes:

Immediate Costs (Month 1)

Expense Typical Range
Moving costs $800-$2,500
Lock changes $150-$400
Deep cleaning $200-$500
Window coverings $500-$2,000
Basic tools & supplies $200-$500
Utility deposits/setup $200-$600

Subtotal: $2,050-$6,500

Maintenance & Repairs (Year 1)

The general rule is to budget 1-2% of your home’s value per year for maintenance and repairs. On a $350,000 home, that’s $3,500-$7,000.

Common first-year surprises:

  • HVAC maintenance — $150-$300 for seasonal tune-ups
  • Plumbing issues — $150-$500 (something always leaks)
  • Appliance replacement — $500-$2,000 (that “working” dishwasher from the inspection? It has 6 months left)
  • Pest control — $200-$500
  • Tree trimming — $300-$1,000

The Yard

If you’re coming from an apartment, the yard will be your biggest surprise. Budget at minimum:

  • Lawn mower (if not provided) — $250-$500
  • Basic lawn supplies — $100-$300/year
  • Garden tools — $100-$200

Not sure whether to DIY your lawn or hire a service? Our Lawn Care Cost Calculator can help you compare.

Furniture & Home Setup

Most new homeowners underestimate this. Going from a 1-bedroom apartment to a 3-bedroom house means a lot of empty rooms. Expect to spend $2,000-$8,000 furnishing over the first year.

How to Prepare

1. Build a Home Emergency Fund

Before you move in, have 3-6 months of housing costs saved, plus a dedicated home repair fund of at least $5,000.

2. Prioritize Ruthlessly

You don’t need to furnish every room in month one. Focus on:

  • Functional kitchen and bathrooms
  • A comfortable bedroom
  • Basic living room setup

Everything else can wait.

3. Learn Basic Maintenance

YouTube is your best friend. Learning to fix a running toilet ($5 part) instead of calling a plumber ($200 visit) will save you thousands over time.

Our New Homeowner Starter Kit includes a complete first-year maintenance calendar and budget template to help you plan.

4. Start a Garden

It sounds counterintuitive — spending money to save money — but a vegetable garden can save a family of four $600-$1,200 per year on groceries. Use our Garden ROI Calculator to see your potential savings.

Check out Harvest Home Guides for a complete beginner’s guide to growing your own food.

The Bottom Line

Your first year as a homeowner will cost more than you expect. That’s normal. The key is going in with realistic expectations and a solid financial buffer.

The good news? Year two is much cheaper. Most of the one-time setup costs are behind you, and you’ll have learned which maintenance tasks you can handle yourself.

Welcome home. You’ve got this. 🏠


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