Homeowners Often Overlook Hidden Figures

Renters who have never heard of a water bill will quickly learn all about it once they buy a house.

Research from Zillow and Thumbtack found that homeowners can expect to spend at least $6,000 a year on average on “hidden,” or overlooked, costs beyond just the mortgage, including insurance, property taxes, and utilities.

Of course, that average fluctuates wildly by location. Homeowners in expensive markets in tax-heavy states, such as San Francisco, San Diego, Los Angeles, Boston, and Austin, Texas, may spend more than $9,000 a year on these costs. More affordable markets, including Indianapolis and Charlotte, N.C., have annual costs under $5,000.

And those unavoidable costs don’t include house upkeep and maintenance, which tack on even more expenses. Homeowners can save money by taking on household chores and yard work themselves, as outsourcing the jobs can be costly. According to the report, homeowners spend an average of $3,021 a year for carpet cleaning, yard work, gutter cleaning, HVAC maintenance, house cleaning, and pressure washing through Thumbtack, a service that connects homeowners with professionals.

Additionally, new homeowners have to pay for closing costs when buying a house, and they may have to spring for HOA fees. Mortgage payments are only the start of housing costs for buyers.

“Determining how much a home will ultimately cost you each year and what you can afford is one of the most challenging aspects of home buying, especially for first-time buyers,” Svenja Gudell, Zillow’s chief economist, said in a statement.