Anyone who shopped for new digs during the recent real estate boom knows that buying a home is expensive. But a lofty purchase price is just the beginning of your costs.
The annual cost of owning a home also is scandalously high, according to a recent analysis by real estate company Zillow and home services website Thumbtack.
They found that the average U.S. homeowner can expect to pay $14,155 a year — or $1,180 a month — in so-called “hidden costs.”
These expenditures include things such as:
- Property taxes
- Insurance
- Utility bills
- Home maintenance
In some markets, the annual cost of homeownership is much higher than average. Following are pricey places where owning a home can be painfully expensive.
1. San Francisco/Oakland/San Jose
Hidden homeownership costs in this metropolitan area: $22,791, on average
The Bay Area long has been the poster child for overpriced living, and nothing has changed. This metro finished first on the list of the “15 Cities Where You Need to Work the Most Hours to Afford a Home.”
2. New York City
Hidden homeownership costs in this metropolitan area: $22,776, on average
Over the past few years, an endless stream of New Yorkers have jumped in their cars and driven to Florida, never to return. High living costs are likely a prime factor in this exodus.
3. Los Angeles
Hidden homeownership costs in this metropolitan area: $22,347, on average
California cities such as Los Angeles also have seen a significant exodus in recent years, as people leave for new locales where housing is more affordable. As we reported in “Retirees Are Fleeing These 10 States,” no place is losing more older folks than the Golden State.
The rest of the top 10
Here are the rest of the top 10:
- Seattle/Tacoma: $20,915
- Boston: $20,879
- San Diego: $18,978
- Austin, Texas: $18,401
- Chicago: $17,880
- Miami/Fort Lauderdale: $17,862
- Portland, Oregon: $17,681
If you are looking for a new home, stop by the Money Talks News Solutions Center and search for a great mortgage rate.
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