Bankrate: Average costs of owning, maintaining a home have risen 26% since 2020
INDIANAPOLIS (WISH) — The average annual cost of owning and maintaining a single-family home in the United States is 26% higher now compared to four years ago, according a new study by Bankrate.
“Homeownership is an important wealth-builder for many Americans, but it ain’t cheap,” said a statement from a Bankrate analyst, Jeff Ostrowski. “These numbers show that the costs of owning a home are at the same level as buying a used car every year. While homeownership is worth the financial sacrifice, homeowners also need to be aware of the ongoing expenses that go along with owning property.”
Bankrate calculated the average costs of property taxes, homeowners’ insurance, home maintenance costs and electricity, and internet and cable bills, and found that they add up to more than $18,000 a year for a typical single-family home, valued at $436,291 per Redfin, in all 50 states.
But in some states, including Hawaii and California, the costs were around $29,000.
“No matter where you live, make sure you include some cushion in your monthly budget to absorb the shock of unplanned expenses,” Ostrowski said in a statement. “After you achieve homeownership, you need to fatten up your emergency savings account for all those surprise repairs.”
The states with the highest average hidden costs of homeownership were in the West or Northeast, while the states with the lowest hidden costs, including Indiana, were in the Southeast or Midwest
The Hoosier state had the fifth-lowest amount of hidden costs at around $12,000.