The Cost of Owning a Home — Up 26% Since 2020

On average the cost of owning a home in the United States has jumped 26% since 2020. Expenses for things like insurance, taxes and utilities plus inflation have driven up those costs.

The financial well-being website, Bankrate says, nationally, the average outlay per year hit $18,118 in March. Pulling out a calculator, that translates to $1,510 a month and $300 a month more than we paid four years ago at the outset of COVID.

Bankrate’s Jeff Ostrowski said the company made its calculation based on Redfin’s March median home sales price average of $436,291. That calculation factored in homeowners insurance, property taxes, the cost of energy and heating, the internet, cable bills and 2% of the sales price for maintenance.

“It was really eye-opening to see just how much it costs to maintain a home,” Ostrowski said. “Until you own a house, it doesn’t dawn on you how much money you’re throwing into the house every month and year.”

By the way, the largest portion of home operation is maintenance. Either property taxes or energy are second depending on the state.

When it comes to homeownership costs, three PIA Western Alliance cities are in the top 10 with Hawaii and California taking the first two places: 

1. Hawaii — $29,015

2. California — $28,790

6. Washington — $23,365

Five PIA Western Alliance states had the biggest increases in expenses from 2020 to 2024. Utah was first at 44%. The national average is 26%

2. Idaho — 39%

3. Hawaii — 38%

4. Montana — 36%

9. Arizona — 32%

10. California — 32%

Source link: Insurance Journal — https://bit.ly/3XAS24G