Upsizing your home can be an exciting step, but it often comes with unexpected financial challenges. At The Halyard Group, we’ve seen many clients underestimate the true costs of moving to a larger property.
From increased utility bills to higher maintenance expenses, upsizing costs can quickly add up and strain your budget. In this post, we’ll explore these hidden costs and provide practical tips to help you prepare for a smooth transition to your new, larger home.
How Much Will Your Utility Bills Increase?
When you upsize your home, one of the most significant hidden costs comes in the form of increased utility expenses. A larger home requires more energy to heat, cool, and light, which can lead to a substantial increase in your monthly bills.
Heating and Cooling Costs
The impact on your heating and cooling expenses can be substantial when you move to a bigger home. According to the U.S. Energy Information Administration, heating and cooling are significant contributors to a home’s energy use. In a larger space, your HVAC system must work harder to maintain a comfortable temperature, which leads to higher energy consumption.
To mitigate these costs, you should invest in energy-efficient appliances and proper insulation. Programmable thermostats can also help by automatically adjusting temperatures based on your schedule (potentially saving you on your annual heating and cooling costs).
Water and Electricity Usage
More square footage means increased lighting requirements and potentially more bathrooms and water-using appliances. This translates to higher water and electricity bills. The Environmental Protection Agency reports that the average American family uses a significant amount of water per day at home (a figure that’s likely to increase with a larger living space).
To keep these costs in check, you should opt for LED light bulbs, which use up to 90% less energy than traditional incandescent bulbs. You can also install low-flow faucets and showerheads to significantly reduce water consumption without sacrificing comfort.
Property Tax Considerations
Many homeowners overlook the impact of upsizing on their property taxes. In most areas, property taxes are based on the assessed value of your home. A larger, more valuable property typically means higher annual tax bills.
Before you make the move, research the property tax rates in your target neighbourhood. Some areas offer homestead exemptions or other tax breaks that can help offset increased costs. It’s also worth noting that property taxes can change over time, so you should factor in potential increases when you budget for your new home.
As you consider these utility costs, it’s important to also think about the additional maintenance and repair expenses that come with a larger home. Let’s explore these costs in the next section.
What Are the True Maintenance Costs of a Larger Home?
The Reality of Upkeep in Larger Spaces
Upsizing your home brings unexpected maintenance and repair costs. More square footage translates to more surfaces to clean, more items to maintain, and more potential issues to address. The U.S. Department of Housing and Urban Development suggests homeowners should allocate 1-4% of their home’s value annually for maintenance and repairs. For larger homes, this percentage often leans towards the higher end.
Cleaning costs increase significantly with size. Professional cleaning services for larger homes can range from $125 to $225 on average or $25 to $50 per hour. This substantial difference highlights the financial impact of maintaining a larger living space.
Bigger Home Systems, Bigger Bills
Larger homes often feature more complex and expensive systems. HVAC units, water heaters, and electrical systems in bigger houses are typically larger and more sophisticated, leading to higher repair and replacement costs.
For instance, replacing an HVAC system in a large home can cost between $11,590 to $14,100 as of 2025. These escalated expenses quickly add up, impacting your overall budget.
The Hidden Costs of Outdoor Maintenance
The exterior of your new, larger home requires attention too. Bigger properties often come with more extensive landscaping needs. Homeowners spend an average of $100 to $200 per month on lawn care services. For larger properties, this figure can easily double or triple.
Roof maintenance is another significant expense that increases with home size. As of 2025, the typical cost of a roof replacement ranges between $5,400 to $19,800, depending on various factors.
Planning for Long-Term Maintenance
To avoid financial stress, factor these increased maintenance costs into your budget when considering upsizing. Set aside funds for these expenses to enjoy your larger home without worry. A well-maintained home not only provides a better living experience but also preserves its value over time.
As you consider these maintenance costs, it’s important to also think about the hidden financial implications that come with upsizing. Let’s explore these additional expenses in the next section.
What Are the Hidden Financial Costs of Upsizing?
Insurance Premium Increases
Upsizing your home often leads to higher home insurance premiums. A larger, more valuable property requires more coverage, which results in increased insurance costs. According to the U.S. Department of the Treasury, average homeowners insurance premiums increased 8.7 percent faster than the rate of inflation from 2018 to 2022. This figure can increase substantially for larger homes.
To manage these costs, you should compare insurance quotes from multiple providers. Many insurers offer discounts for bundling home and auto insurance or for installing security systems (which can help offset the increased premiums associated with a larger home).
Furnishing and Decor Expenses
A bigger home means more space to fill. The costs of furnishing and decorating additional rooms can quickly accumulate. The National Association of Home Builders found that new homeowners spend an average of $3,000 on furniture and $2,000 on appliances within the first year of moving.
To control these expenses, you should prioritize essential items and spread out your purchases over time. Consider second-hand options or wait for sales to furnish non-essential spaces. You don’t need to fill every room immediately.
HOA Fees in Larger Communities
If you upsize to a home in a planned community or condominium, you might encounter Homeowners Association (HOA) fees. These fees can vary widely, but according to Zillow’s estimate, the median HOA fee in the United States was about $290 per month as of May 2, 2024. For larger homes or more upscale communities, these fees can easily exceed $500 per month.
Before you commit to a property with HOA fees, you should carefully review the association’s financial statements and reserve funds. Understanding what these fees cover and how often they increase will help you budget more effectively for the long term.
Property Tax Adjustments
Upsizing often results in higher property taxes. Most areas base property taxes on the assessed value of your home. A larger, more valuable property typically means higher annual tax bills.
You should research the property tax rates in your target neighbourhood before you make the move. Some areas offer homestead exemptions or other tax breaks that can help offset increased costs. Property taxes can change over time, so you should factor in potential increases when you budget for your new home.
Increased Maintenance Costs
Larger homes require more maintenance, which translates to higher costs. The 1% rule suggests that homeowners should set aside 1% of your home’s purchase price annually for home maintenance.
You should prepare for increased expenses related to cleaning, repairs, and regular upkeep. Professional cleaning services for larger homes can range from $125 to $225 on average. HVAC replacements in large homes can cost between $11,590 to $14,100 as of 2025. These escalated expenses can quickly impact your overall budget.
Underestimating mortgage, land transfer tax, and moving expenses are common pitfalls when upsizing. It’s crucial to factor in these hidden costs when planning your move to a larger home.
Final Thoughts
Upsizing costs can significantly impact your financial stability. These expenses include increased utility bills, maintenance costs, higher insurance premiums, and property taxes. You must understand and prepare for these additional costs to make an informed decision and ensure a smooth transition to your larger home.
Proper budgeting and financial planning play a vital role when you consider an upsize. Research and estimate all potential expenses, including those that might not appear obvious at first glance. This proactive approach will help you avoid financial surprises and stress in the future.
The complexities of upsizing can challenge many homeowners. The Halyard Group specializes in helping families in the Greater Toronto Area upsize to larger homes in top rated neighbourhoods. Our expert team offers personalized guidance throughout the entire process (from maximizing the selling price of your current home to finding a new one that meets your evolving needs). We provide comprehensive support to ensure a seamless transition for your family.
If you’re considering a move, get in touch with our team to start planning your upsizing journey with confidence.
