Homeowners have more than mortgage payments eating away at their budgets, as a new data report from Zillow and Thumbtack determined the so-called “hidden costs of homeownership” now add up to $15,979 per year nationwide – a sum that is outpacing incomes.
In addition to the average mortgage payment of $1,325 per month, the typical US homeowner is now paying $10,946 on maintenance, $2,003 on homeowner’s insurance, and $3,030 on property taxes. These combined costs were up 4.7% from one year ago, while household incomes rose by 3.8%.
In some markets, the costs are more onerous – hidden costs reach $24,381 in New York City, $22,781 in San Francisco and $21,320 in Boston.
“Insurance costs are rising nearly twice as fast as homeowner incomes,” said Kara Ng, Zillow senior economist. “It’s not just a budget line item. It’s a barrier to entry for aspiring first-time buyers and for families already stretched thin. Buyers who are already facing affordability challenges in today’s market need to understand and budget for these less obvious expenses when calculating how much home they can truly afford.”
Very true points that you have made
Homeowners insurance is outrageous
Not forgetting the deductibles
Also insurance requirements are severe
As to the age of roofs and required replacements
Not related is the increase cost of car
Insurance
Electricity rates are skyrocketing
Water rates ridiculous
Houses require much more furniture
John; Yes, indeed. Newer federal policy to expand our electric production, not stopping, but de-emphasizing wind and solar, but more nuclear power (small stations) would go a long way to cut rates
I think the costs should be renamed – they are certainly not “hidden”. Homebuyers can’t purchase a home without insurance (if it has a loan), and this is reflected in several documents given to buyers when they purchase their home. Property taxes are very obvious and are shown on their lender docs as well as their closing docs. The “unknown” costs are the maintenance costs, and they can be a surprise even if you have owned a home for decades. A rainy day fund is always a good idea!
Where were these “Costs” researched from? $10,946 maintenance costs seems like they are lumping in utilities, gas, electric, cable, phone and who knows what in the mix. Renters pay electric, gas, water, cable and more, so it seems not to be accurate or at least not defined well at all?!
I want to know where taxes are that low. I need to move there – OR – we need to eliminate property taxes so people no longer have to pay to “rent” their homes back from the government!
I *wish* my homeowners insurance was that cheap. We’re paying over $6k/year.
I’m in Fort Lauderdale. Where are those taxes and Insurance quoted from ?????
My insurance alone is 6k and let’s not talk about Taxes!!!!
Voting Public has some harsh decisions to make in the coming years. Insurance settlements are very high. Fraud is not punished in some jurisdictions, and I wonder if we aren’t doing enough preventive maintenance, like trimming trees, cleaning gutters, or keeping water from getting into the house. There are more.
The costs for Homeowner’s Associations is another expense to consider. Some are very high!