Zillow and Thumbtack’s new analysis identifies the additional costs homebuyers face, including utilities, insurance, maintenance and property taxes
- Homeowners can expect a payment $14,155 one year or $1,180 per month in hidden costs associated with owning a home.
- These annual costs can be up to high $22,791 in the san francisco metro area and as low as $9,886 In Las Vegas.
- Affordability is the number one challenge for first-time home buyers. Zillow’s affordability calculator and Thumbtack’s new monthly expense finder tool and personalized maintenance guides can help buyers factor these expenses into their budgets.
SEATTLE And SAN FRANCISCO, June 1, 2023 /PRNewswire/ — The daily cost of owning a home is higher than ever, according to a new analysis by Zillow® and Thumbtack. Utility bills, property taxes, insurance, and essential maintenance can add up $14,155 per year for the average US homeowner. This is an addition $1,180 per month in addition to a typical mortgage payment. First-time home buyers, faced with affordability issues in today’s market, need to understand and factor in these less obvious expenses when calculating how much home they can afford.
Zillow and Thumbtack: Top 10 metropolitan areas with the highest hidden annual home ownership costs
These costs can be surprisingly high, and even higher, in already expensive metropolitan areas $22,000 annually in san francisco, new York And The angel. Of the 39 metropolitan areas analyzed, the hidden cost of owning a home is the lowest Las Vegas ($9,886); Asheville, North Carolina ($11,318); And st louis ($11,824).
Zillow and Thumbtack’s research looked at three unavoidable expenses for single-family homeowners — property taxes, home insurance, and utilities (electricity, water, natural gas, and internet) — and found that they were average $7,742 total nationwide. New Yorkers pay the highest property taxes, even more $9,000 per year, while the cost of supply is the highest Hartford, Connecticutaveraging $4,443 a year. The cost of homeowners insurance varies by home value, so homeowners in the cheapest metropolitan areas, such as Pittsburgh And Clevelandhave the added benefit of lower insurance costs.
The analysis also considered Thumbtack’s 17 major home maintenance projects, based on data from millions of home projects completed across the country. These projects have an overall average $6,413 yearly. Average maintenance costs are highest in The angel And Chicagoin total $8,639 And $7,722 or Meanwhile, homeowners are in Las Vegas can count on being paid fairly $3,467 per year to maintain their homes.
“Just as you would visit a mechanic regularly to keep your car in good condition and avoid big bills, your home also needs the same routine maintenance to make sure everything is running smoothly,” he said David Steckel, Thumbtack’s home expert. “Keeping track of your home’s annual maintenance not only increases the value of your home, but also avoids emergency repairs that can break the homeowner’s budget.”
Almost half of all homebuyers (45%) are first-time buyers, and they may be surprised by these costs and don’t consider them when budgeting for a home. By starting on the Home Loans tab on the Zillow homepage, buyers can use an affordability calculator to find out how much they can afford and then connect with a loan officer to find out more than just which mortgage they qualify for , but also what they would like to pay. Given these additional costs. With that budget, buyers can then use a new app filter on Zillow to buy homes by monthly cost instead of purchase price.
“Understanding all of the costs that come with homeownership can impact not only a buyer’s budget, but also the type of home they’re buying,” said Zillow home trends expert Amanda Pendleton. “While a large backyard or home can be attractive, it’s important to consider how much these spaces could cost to maintain. Buyers may want to consider affordable alternatives to single-family homes, or spend more upfront for a new construction home that might require less maintenance in the short term.”
Once buyers have closed the deal, Thumbtack is the point of contact to help you care for your new home. By entering the location and features of their home on Thumbtack, homeowners can receive personalized guidance on what projects to complete, when, and who to hire to complete the work. This will help homeowners create prioritized maintenance schedules that work within their budgets and cover everything from moving house cleaning to tree trimming and roof maintenance.
In this analysis, property taxes were calculated using the average effective tax rate in each metro area multiplied by the area’s average home value as measured by the Zillow Home Value Index.
In estimating the cost of insurance, this analysis assumed that homeowners pay 0.5% of their home’s value each year, which was calculated as 0.005 times the region’s average home value as measured by the Zillow Home Value Index.
Utility costs were calculated using the unweighted average of all states, excluding streaming and phone bill costs, as reported by Forbes.
Annual home maintenance costs are made up of thumbtack categories that are considered essential annual home maintenance tasks: appliance maintenance, carpet cleaning, central air conditioning maintenance, patio staining and sealing, duct and vent cleaning, chimney and chimney cleaning, lawn with comprehensive Services Gutter care, cleaning and maintenance, heating system maintenance, house cleaning, pressure washing, roof maintenance, sprinkler and irrigation system maintenance, tile and grout cleaning, tree pruning and removal, water heater maintenance and window cleaning.
Pricing data is based on Thumbtack requested projects reported directly by the independent services professional or individual clients. The cost is an unweighted index of all annual home maintenance projects and is calculated quarterly using a moving average.
About the Zillow Group
Zillow Group, Inc. (NASDAQ:Z) (NASDAQ:ZG) is rethinking real estate to make it easier to move on to the next chapter in life. Most visited real estate website in The United StatesZillow® and its subsidiaries provide customers with a transparent and easy on-demand experience to sell, buy, rent or finance.
Zillow Group affiliates, brands and subsidiaries include Zillow®; Zillow Premier Agent®; Zillow Home Loans™; Zillow Closing Services™; Trulia®; Out East®; StreetEasy®; HotPads®; and ShowingTime+℠, which hosts ShowingTime®, Bridge Interactive®, and dotloop®, as well as interactive floorplans. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).
Thumbtack is a technology leader developing the modern home management platform. With the Thumbtack app, homeowners can effortlessly manage their homes—and confidently know what to do, when, and who to hire. Bring them 600 billion dollars Thumbtack is an online platform for the home services industry, enabling millions of homeowners to repair, maintain and improve their most valuable asset. Hundreds of thousands of local service professionals, from painters and plumbers to photographers and electricians, use the Thumbtack platform each year to grow their business.
SOURCE Zillow Group, Inc.