How much does it cost to own a home each year in Australia?

Owning a home costs more than the mortgage. For a borrower taking out the national average new owner-occupier loan in the December quarter of 2025, the repayment is one item in a wider annual cost model. Homeowners may also pay council rates, insurance premiums, water bills and ongoing maintenance costs each year. Unit and apartment owners may pay strata levies instead of separate building maintenance costs.

Together, these additional costs can add thousands of dollars per year to mortgage repayments, depending on property type, location, insurance risk, council area, and maintenance needs.

Property prices vary widely across states

Median house prices vary by more than $867,000 across states, from $732,769 in the Northern Territory to $1,600,301 in New South Wales. Units and apartments are more affordable in every state, though the extent of the difference depends heavily on the market.

Queensland has the largest house-to-unit gap: the median house price of $1,222,906 is more than 2.6 times the median unit price of $460,000, a difference of $762,906. In Tasmania, the gap is just $207,382, partly because limited unit supply means unit prices track house prices more closely than in other states.

The six recurring costs of home ownership

Most homeowners pay a mortgage, insurance, council rates and water bills. Beyond those, house owners may face separate maintenance costs, while unit owners usually pay strata levies that cover shared building costs. These costs can recur each year and vary by property type, location and ownership structure.

Average mortgage repayments have doubled since 2019

The estimated average monthly mortgage repayment for a new owner-occupier borrower reached $4,019 in 2025, up from $2,005 in 2019. That is a nominal increase of just over 100% in six years, and the growth has outpaced inflation by a wide margin.

In real terms, after adjusting for inflation to Q1 2026 dollars, the estimated monthly repayment rose from $2,551 to $4,127, a real increase of 61.8%. The largest annual increase came between 2022 and 2023, when rates on new loans climbed from 3.46% to 5.70% during a period of RBA cash rate increases.

Two factors contributed to the increase: rates rose from historic lows, and average loan sizes increased as property prices rose. The national average new owner-occupier loan went from $456,000 in 2019 to $693,000 for the full year 2025, reaching $736,000 in the December quarter of 2025. That is a 52% increase in the full-year average loan size between 2019 and 2025.

Queensland recorded the strongest year-on-year loan growth in the December quarter of 2025, with the average new loan rising 15.9%. Western Australia was close behind at 14.9%. The ACT recorded the slowest growth at 1.4%.

Home insurance premiums are highest in northern Australia

Home and contents insurance is one of the fastest-rising costs in the home ownership budget. The ACCC's Insurance Monitoring Report 2025 found that the average combined premium in the Northern Territory reached $3,337 per year in 2023–24, up 14% from $2,922 the previous year. In north Queensland the average was $3,029 (up 4%), and in north Western Australia $4,618 (up 5%). The rest of Australia saw the sharpest single-year increase of the four regions, up 18% to reach an average of $2,094.

The variation by location is stark. Northern Australia carries the highest premiums in the country, reflecting elevated exposure to tropical cyclone and flood risk. The ACCC's SA3-level data shows that 78% of NT regions fall into the highest premium band ($3,000 or more per year), compared with just 9% of Victorian regions. South Australia and Victoria record the lowest average premiums among the states.

For unit owners, building insurance is typically covered through the strata corporation, leaving individual owners responsible for contents only. Strata insurance premiums have also risen sharply: north QLD reached $10,190/yr in 2023–24 (up 6 per cent) and north WA reached $18,009 (up 18 per cent). Outside northern Australia, the rest-of-Australia average was $8,040/yr, but it still rose 30 per cent in 2023–24.

Which states pay the highest council rates in Australia?

Council rates are levied annually to fund local services including waste collection, roads, parks, and community infrastructure. For most homeowners, they arrive as quarterly notices, but the annual total varies considerably by location.

The ACT has the highest indicative annual rates burden as a proportion of property value at 0.44 per cent. Tasmania and the NT follow at 0.33 and 0.31 per cent respectively. NSW has the lowest rate relative to property value at 0.12 per cent — despite having the country's highest property prices, average annual council rates are the lowest of any state at around $1,970 per year.

Estimated house maintenance costs by state in Australia

Using the widely cited 1% rule, annual maintenance costs range from $7,328 in the Northern Territory to $16,003 in New South Wales, based on median house prices. The rule, endorsed by Moneysmart and commonly referenced by financial advisers, treats 1% of a property's value as the appropriate annual allowance for repairs, upkeep, and gradual replacement of fixtures and fittings.

Maintenance spending is uneven in practice. Some years cost very little; others may include a hot water system replacement, an unplanned roof repair or a fence rebuild. The 1% figure works better as a long-term estimate than a fixed monthly cost.

Unit and apartment owners usually do not pay for building maintenance separately. Their strata levies can include contributions to a capital works fund, managed by the owners corporation, which covers building repairs and common-area upkeep.

How much are strata fees in Australia?

Based on a mid-range benchmark of 0.8% of property value per year, estimated strata levies range from $272 per month in WA and NT to $513 per month in NSW.

Strata levies can cover costs that house owners often pay separately, including building insurance, shared building maintenance and capital works contributions. Actual levies vary widely depending on the building's age, facilities, insurance costs, maintenance needs and capital works fund.

In NSW, a unit owner at the median price of $770,000 pays an estimated $513 per month or $6,160 per year in levies. In Queensland, where the median unit price is $460,000, the mid-range figure is $307 per month. The gap between states reflects the large differences in median unit prices rather than different levy rates.

Average water bills for Australian homeowners

Water bills usually have two parts: a fixed network access charge and a variable usage charge. In this model, the fixed charge is around $23 per month, while usage averages $68 per month. Combined, this gives an estimated water cost of $91 per month, or $1,095 per year, making water one of the smaller recurring home ownership costs.

Properties with large gardens, pools, or more occupants will typically pay more. Billing structures also vary by state, and some councils bundle water charges into rates notices rather than issuing separate bills.

Total home ownership costs by state

Combining the recurring cost benchmarks used in this article, NSW records the highest home ownership cost at more than $6,865 per month. Tasmania records the lowest total at around $4,050.

For most buyers, the mortgage is the number they plan for. The gap between that number and the true monthly cost of ownership is where budgets run short.