ST. LOUIS–While the costs of home ownership due to high interest rates is getting significant attention, a new report reminds that while it may be less visible, current homeowners are also feeling the pain of expensive housing costs.
According to the findings released by Real Estate Witch, entering 2023 the true cost of owning a home has been climbing quickly. In addition to their mortgage payments, the average U.S. homeowner spends $17,459 annually on hidden costs. Those costs include:
- $4,975 for utilities
- $4,283 for maintenance
- $3,890 for home improvements
- $2,795 for property taxes
- $1,516 for homeowners insurance
“Given an extra $17,500 in annual expenses, about 90% of homeowners say the true cost of owning a home is higher than they originally expected,” Real Estate Witch stated.
Regrets, I Have a Few
In addition, Real Estate Witch said an “astonishing” 73% of homeowners say they have regrets about their home purchase, according to its 1,000 homeowners. The survey also found that 65% of homeowners have some form of buyer’s remorse, including 71% of those who bought during the pandemic.
To better understand the cost of owning a home, Real Estate Witch said it asked homeowners about their expenses, finances, and opinions on homeownership. In addition to what’s reported above, Real Estate Witch said it also found:
- 53% of homeowners find owning a home stressful.
- 26% of homeowners — and 35% of those who own fixer-uppers — say their home negatively affects their mental health.
- 34% of homeowners say the seller was not upfront about how much maintenance the home required.
- The most expensive hidden cost of homeownership is the price of utilities. Homeowners spend $4,975 on utilities each year — nearly 2x more than renters ($2,845).
- 90% of homeowners say some aspect of owning their home was more expensive than they originally expected.
- 85% of homeowners say inflation has impacted the cost of owning their home.
- 54% of homeowners could not afford a $3,000 emergency repair without going into credit card debt.
- The average homeowner spends 17.1 hours each month — 205 hours a year — dealing with home repairs and improvements
The full report can be found here.
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