Home ownership is truly The American Dream. However, it is important that new home owners are fully aware of what to expect with home ownership. A recent survey called Hidden Costs, Buyer’s Remorse: The True Cost of Homeownership interviewed 1,000 homeowners. Interestingly, 52% of survey respondents admitted that the true cost of home ownership surprised them. In addition to rising acquisition costs for homes in recent years, the average homeowners spends an additional $15,405 each year in addition to their mortgage.
The breakdown of additional costs
In analyzing the additional $15,405 spent each year on home ownership, on average these costs broke down as follows:
- $4,829 on utilities
- $3,300 on home improvements
- $3,018 on maintenance and repairs
- $2,578 on property taxes
- $1,680 on homeowner’s insurance
Overall, these home ownership costs have increased by an average of $2,000/year since this survey was last conducted in 2019. The share of homeowners spending over 40% of their household income on housing has nearly doubled since before the COVID-19 pandemic (16% vs. 29%). On average, homeowners spend about $2,000 more than renters on utilities annually. Needless to say, if you are planning on buying a home in the future, it is critical that you save more money than you likely budgeted for. Not only do these additional costs surprise most homeowners, these typical expenses are also going higher.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!