Shocking Home Cost Statistics
By Steven De Nazareth
Updated: May 22nd, 2019
Most of us consider homeownership as a treasured experience. It is a common dream to own a home someday. While the experience is indeed one that gives tremendous joy, it too has a certain not so joyous side. Most common troubles associated with homeownership are usually monetary in nature. Let’s take a look at some of the statistics that are sure to shock you!
Real cost of being a homeowner
For many, the initial days of being a homeowner are filled with happiness and a sense of accomplishment. Once those days pass, the reality sinks in, homeownership is a pricey experience. For those of you who are not aware of the various costs that are associated with homeownership, this article may surprise! We’ve borrowed the results from the U.S. Census Board’s survey that conducted a study to identify the various costs of being a homeowner. Let’s take a look at some such costs
#1 – Home Maintenance & Appliance Repairs
This is a very familiar term. Everyone knows that a house will require maintenance, but does anyone know exactly how much? The Census Board believes that, on average, every home requires annual maintenance costs that is around 1-4% of the home’s value. And this percentage steadily rises as the house ages.
It’s no big secret that appliance repairs/ replacements are expensive affairs. Maintaining them will be hard on your budget if you don’t have any form of protection or service contract for that. As per the studies, home maintenance makes for the biggest chunk of expense any homeowner is bound to encounter.
Research revealed that on an average a $200,000 home will require at least $2,000 in repairs and general maintenance expenses alone. Average appliance repair costs alone range between $100 to $350 in a year. This is precisely why home warranty plans were invented. Such plans cost only around $200-$600 a year and they will provide you with discounted repairs/replacements, which in the long run would help you save thousands of dollars!
#2 – Property Tax
This too should be a familiar term. The Census Board says that between the years 2007-2011, around 60% of the counties in U.S. reported the average property tax to be somewhere around $500 – $1,500. Here’s a fact to shock the living daylights out of you, the average annual property tax in Westchester county, NY was $9,647. Worried?
#3 – Heating & Cooling costs
Now this one must not have crossed your mind. Almost all homes in U.S. are equipped in heating and cooling units. As per surveys, home’s using electricity for heating will spend $900, homes using propane $1,666 and homes using heating oil will spend $2,400 on average heating costs.
Cooling thankfully runs on electricity alone and research suggests that on average a home incurs around $300 annually by using air conditioning systems.
#4 – HVAC repair
Yet another one that makes up for one big chunk of money. HVAC repairs, on average cost around $400 a year. Furnace repairs sometimes cost upto $800 a year. At least for the sake of avoiding such expenses for HVAC units, we recommend that you purchase a home warranty plan. $300 a year for a host of appliances is better than $800 a year for one unit. Is it not?
And that’s NOT all!
Sadly this list does not cover all the expenses that a homeowner has to meet, it lists only the main ones. We strongly recommend our readers to go through the various benefits of home warranty and to purchase one if your home and its contents are 4+ years old. You can even use our website to obtain a free quote and to take a look at top 10 home warranty companies.
Our readers are encouraged to approach us should they have any concerns or queries. We hope you enjoyed reading this article. Do come back for more. Cheers!
Did you find this article helpful? YES | NO
Thank you for your feedback!