Boston-area home buyers reportedly face $14,000-plus in ‘hidden’ costs
In Boston, the "hidden" costs of homeownership are an estimated $14,221, higher than the national average.
SEATTLE and SAN FRANCISCO — US Homeowners can expect to spend about $9,390 every year on costs associated with owning and caring for a home, according to an analysis by the Zillow real estate website and Thumbtack, an in-home services site.
In Boston, the “hidden” costs of homeownership are higher: $14,221, according to the report. The Boston metro area, according to Zillow, includes Suffolk, Middlesex, Plymouth, and Norfolk counties, as well as Strafford and Rockingham counties in southern New Hampshire.
When it comes to buying a home, shoppers frequently focus on the sticker price or the monthly mortgage payments, but homeowners are also responsible for additional costs that are often overlooked during the home search, such as property taxes, insurance, and maintenance projects.
One-third of buyers say that determining their budget was a challenge during the shopping process. To help understand the additional costs they may face, Zillow and Thumbtack identified several common costs to calculate what homeowners around the country can expect to pay in annual expenses. This analysis also includes utility cost estimates from UtilityScore.
Property taxes, utilities, and homeowners insurance are necessary expenses for homeowners. Nationally, these costs add up to $6,327 per year, but can be much higher in more expensive markets. In San Jose, where the typical home is worth $1,287,600, these costs add up to $17,255 per year, the highest of any market analyzed. By contrast, these costs add up to $5,540 annually in Indianapolis, less than one-third of the San Jose total. In Boston, that figure was $11, 231.
Many homeowners also opt to hire professionals for a variety of common home maintenance projects, including house cleaning, lawn care, carpet cleaning, central air and heating system repairs, gutter cleaning, and pressure washing. The nationwide average cost of these tasks is $3,067 per year. Labor costs vary in different parts of the country, so these jobs can be much more expensive depending on where someone lives. In Portland, Oregon, homeowners can expect to pay $3,810 per year for these projects, compared with the $2,570 owners in Miami can expect to spend. In Boston, that figure was $2,900.
‘‘Ongoing maintenance costs and annual fees are some of the most common surprises for first-time home buyers after they finally become homeowners. While they are shopping, buyers tend to focus on their monthly mortgage payments, but other needs quickly add up after move-in,’’ said Aaron Terrazas, Zillow senior economist. ‘‘The list price is just the beginning of understanding the costs that come with being a homeowner, and it’s important to understand what other expenses you may have to account for when determining what you can afford.’’
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