[ad_1]
Frustrated homebuyers watched as U.S. home prices soared from a median of $327,100 in the fourth quarter of 2019 to $436,800 in the first quarter of 2023. With the focus on rapidly rising prices, it’s easy to forget about the “hidden” costs of homeownership, including property taxes, homeowners insurance, utilities, and maintenance.
According to a recent Zillow study of housing costs for the first quarter of 2023, the median for these ancillary costs in 39 large U.S. metropolitan areas is $14,155 per year. Of these metros (for which sufficient data is available), San Francisco has the highest annual hidden costs ($22,791 median) and Las Vegas the lowest ($9,886).
Overall, median maintenance costs were the highest ($6,413 per year), followed by utilities ($3,216), property taxes ($2,827) and homeowners insurance ($1,699). Taxes vary the most, with New York City’s annual median of $9,145 and Pittsburgh’s annual median of just $1,055.
To construct the list, the researchers used each city’s median real estate taxes and home values (taken from the Zillow Home Value Index). Insurance costs are calculated at 0.5% of value. Utility costs come from state averages for 2022, while phone bills and streaming service costs come from Forbes reports. Zillow partnered with Thumbtack, a site that connects contractors and homeowners, to determine local maintenance and basic repair costs, such as repairing appliances, house cleaning (including carpet, chimneys, gutters, grout, and windows), lawn care, roof maintenance, and yards work etc.
