Hidden prices of homeownership can add as much as almost $15,000 yearly

The new analysis from Zillow and Thumbtack identifies the additional costs home buyers can expect, including utilities, insurance, maintenance and property taxes

• Homeowners can expect a payment $14,155 a year, or $1,180 per month in hidden costs associated with owning a home.
• These annual costs can be too high $22,791 in the San Francisco metro area and as low as $9,886 In Las Vegas.
• Affordability is the biggest challenge for first-time home buyers. Zillow's affordability calculator and new monthly cost finder tool, as well as Thumbtack's personalized maintenance guides, can help buyers factor these costs into their budget.

SEATTLE And SAN FRANCISCO, June 1, 2023 /PRNewswire/ — The daily cost of owning a home is higher than ever, according to a new analysis from 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 facing affordability challenges in today's market need to understand and factor in these less obvious expenses when calculating how much home they can afford.

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 costs of homeownership are the lowest Las Vegas ($9,886); Asheville, North Carolina ($11,318); And St Louis ($11,824).

Research from Zillow and Thumbtack examined three unavoidable expenses for single-family homeowners—property taxes, home insurance, and utilities (energy, water, natural gas, and internet)—and found that they were average $7,742 overall nationwide. New Yorkers pay the highest property taxes, even more $9,000 per year while utility costs are at their highest Hartford, Connecticutaveraging $4,443 a year. The cost of homeowners insurance varies depending on 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 essential home maintenance projects, based on data from millions of home projects completed across the country. These projects have an overall average $6,413 yearly. The average maintenance costs are highest in The angel And Chicagoin total $8,639 And $7,722 respectively. Homeowners are now in Las Vegas can expect to pay fairly $3,467 per year to maintain their homes.

“Just like you would visit a mechanic regularly to keep your car in good condition and avoid high bills, your home also needs the same routine maintenance to ensure everything is running smoothly,” he said David Steckel, Thumbtack's home expert. “Staying on top of your home's annual maintenance will not only increase your home's value, but also avoid emergency repairs that can break the homeowner's budget.”

Nearly half of all home buyers (45%) are first-time buyers, and they may be surprised by these costs and not take them into account when budgeting for a home. When buyers start in the Home Loans tab on the Zillow homepage, they can use an affordability calculator to figure out how much they can afford, then connect with a loan officer to not only find out what 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 purchase homes based on monthly cost instead of purchase price.

“Understanding all the costs that come with homeownership can impact not only a buyer's budget, but also the type of home they purchase,” said Zillow home trends expert Amanda Pendleton. “While a large backyard or larger home can be attractive, it is important to consider how much it might cost to maintain these spaces. Buyers may want to consider affordable alternatives to single-family homes or spend more up front on a new construction home that might require less maintenance in the short term.”

Once buyers close the deal, Thumbtack is the point of contact to help you care for your new home. By entering their home's location and features on Thumbtack, homeowners can receive personalized guidance on which projects to complete, when, and who to hire to complete the work. This will help homeowners create prioritized maintenance plans that are within their budget and cover everything from move-in home cleaning to tree trimming and roof maintenance.

methodology

In this analysis, property taxes were calculated using the average effective tax rate in each metropolitan area multiplied by the area's average home value, as measured by the Zillow Home Value Index.

In estimating insurance costs, this analysis assumed that homeowners pay 0.5% of their home's value each year, which was calculated as 0.005 multiplied by the area'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 tack 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, fireplace and chimney cleaning, lawn with comprehensive Service Gutter care, cleaning and maintenance, heating system maintenance, house cleaning, pressure washing, roof maintenance, sprinkler and irrigation system maintenance, tile and grout cleaning, tree trimming and removal, water heater maintenance and window cleaning.

Pricing data is based on projects requested on Thumbtack reported directly by the independent service professional or individual customer. Cost is an unweighted index of all annual home maintenance projects and is calculated quarterly using a moving average.

About Zillow Group

Zillow Group, Inc. (NASDAQ: Z) (NASDAQ: ZG) is reimagining real estate to make it easier to enter the next chapter of life. As the most visited real estate website in The United StatesZillow® and its affiliates provide customers with a transparent and easy, on-demand experience for selling, buying, renting or financing.

Zillow Group's affiliates, brands and subsidiaries include Zillow®; Zillow Premier Agent®; Zillow Home Loans™; Zillow Closing Services™; Trulia®; Out East®; StreetEasy®; HotPads®; and ShowingTime+℠, which houses ShowingTime®, Bridge Interactive® and dotloop®, as well as interactive floor plans. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).

About thumbtack

Thumbtack is a technology leader developing the modern home management platform. With the Thumbtack app, homeowners can manage their homes effortlessly – knowing with confidence what to do, when to do it, and who to hire. Bring them 600 billion dollars Thumbtack is an online platform for the home services industry, empowering millions of homeowners to repair, maintain and improve their most valuable assets. Hundreds of thousands of local service professionals, from painters and plumbers to photographers and electricians, use the Thumbtack platform each year to grow their businesses.

SOURCE Zillow Group, Inc.

For more information: Amanda Pendleton, Zillow, press@zillow.com; or Gina Balistreri, Thumbtack, press@thumbtack.com