It’s Monday, and that means there must be a new Zillow analysis of data having to do with real estate. And there is.
Today, the story is about the sometimes hidden costs of home ownership. Zillow reports that nationally, home owners can expect to spend $9,080 a year on average in hidden costs related to owning and maintaining a home, according to a new analysis from Zillow® and Thumbtack. Since nearly half (47%) of home shoppers today are first-time buyers, many of these extra costs may come as a surprise.
Zillow and Thumbtack identified several common but often overlooked home expenses and calculated what home owners could expect to pay for them around the country. The analysis also included utility cost estimates from UtilityScore.
Nationally, homeowners pay an average $6,059 per year in to cover homeowners insurance, property taxes and utilities, three common but sometimes overlooked home expenses. San Francisco home owners pay the most of the metros analyzed ($13,019 a year), primarily due to the market’s high home values and property taxes. Indianapolis home owners pay the least at $4,699.
Most U.S. home owners (96%) have made some kind of improvement to their home. While many complete these projects themselves, those who hire a professional can expect to spend more than $3,021 a year on average for carpet cleaning, yard work, gutter cleaning, HVAC maintenance, house cleaning and pressure washing, the six most common hired home projects requested by home owners on Thumbtack. Labor costs can vary significantly by region, with Seattle homeowners paying as much as $4,052 a year on average for those six projects, whereas in San Antonio, they pay just $1,962 on average.
“Determining how much a home will ultimately cost you each year and what you can afford is one of the most challenging aspects of home buying, especially for first-time buyers,” says Svenja Gudell, Zillow’s chief economist. “Before starting a home search, take a good look at your finances to determine a monthly payment range you can comfortably afford. While that big back yard or larger home may be appealing, it is important to consider how much maintaining those spaces could cost you.”
“While it may be tempting for home owners to think they can cut costs by doing home maintenance projects themselves, hiring a trained professional to take them on can save them time, anxiety and most likely money in the long run,” said Lucas Puente, Thumbtack‘s economist. “Across the U.S., buyers should be prepared to spend at least a few thousand a year in home maintenance costs.”
To help buyers better understand the total cost of home ownership, Zillow Group, Inc. launched RealEstate.com®, a website that allows people to search for homes by the “All-In Monthly Price” of owning that home, like utilities, taxes, HOA’s and closing costs.
