The hidden cost of owning a home

Photo: TaxRebate.org.uk

Homeowners can pay more than $9,000 in hidden and home maintenance costs every year, according to a new analysis by Zillow and Thumbtack. Nationally, homeowners pay an average $6,042 per year in unavoidable hidden costs, which include homeowners insurance, property taxes and utilities. Homeowners in the Boston metro can expect to pay $9,413 annually – the highest in the markets analyzed – primarily due to high property taxes. Compare that to Phoenix, where homeowners pay an average $4,513 for these same costs.

"Home buyers too often fixate on the sticker price or monthly mortgage payment on a house, and don't budget for the other expenses associated with ownership – which can add up quickly," says Amy Bohutinsky, Zillow chief marketing officer.
"For example, new buyers can get really excited about having a backyard of their own for the first time, without budgeting for how they plan to maintain that space."

For buyers who may be relocating to a different area of the country, the difference in hidden and home maintenance costs are important to consider when budgeting. For example, median home values in Phoenix and Philadelphia are fairly comparable at $201,800 and $200,500, respectively. However, buyers in Philadelphia could spend an additional $3,648 every year to cover the same hidden, unavoidable costs as a homeowner in Phoenix, and an extra $755 per year in maintenance costs.