ST. LOUIS– Credit unions hosting homebuyer workshops might want to help prepare home shoppers by pointing to two new studies that reveal the true costs of homeownership–including big differences in house taxes depending on where one lives. Both of the studies were conducted on behalf of Clever Real Estate.
The first study shows that the average homeowner spends $2,676 on maintenance and repairs, $6,649 on home improvements, $2,600 on property taxes and $1,228 on homeowners insurance every year.
“However, these numbers don’t tell the whole story,” noted Clever Real Estate in releasing its findings.
The company said Millennials are feeling the pressure of homeownership more than any generation, and a full report that compares Millennial and Baby Boomer homeowners can be found here.
The Findings
Among the Findings in the Surveys:
- 59% of homeowners making renovations are using some combination of credit cards, personal loans, and home equity loans to fund their projects
- One-in-four homeowners have less than $500 saved for home repairs
- In spite of the costs, 65% of homeowners said they’ve never felt homebuyer’s remorse
- Where you live matters: On average, New Jersey homeowners pay five times more in property taxes on a $206,000 home than they would if they lived in Alabama
Millennial Insights:
- Millennials are twice as likely to be stressed about homeownership than Baby Boomers
- 67% of millennials put less than 20% down, leading to higher mortgage payments
- Millennials are three times as likely to use a personal loan and twice as likely to use a credit card to finance their renovations than Baby Boomers
- 43% of Millennials were surprised by the cost of maintaining their homes
The study found almost every homeowner (75%) is planning renovations in the next five years, but Millennials are planning 50% more renovations than Baby Boomers.
- The True Cost of Homeownership study can be found here
- The Millennial vs. Baby Boomer Homeowner study can be found here