With home prices rising, it’s now more expensive than ever to buy a home. And unfortunately, a mortgage is just one of the costs that come along with being a homeowner. A new report by Clever found that the average American homeowner spends $17,459 each year on top of their mortgage.
For most homeowners, the largest expenses outside of their mortgage are their utility bills. The Clever study found that the average American homeowner now spends $4,975 annually on utilities.
The average homeowner spends $3,890 on home improvement projects each year, the report found. And although that’s the average, many homeowners spend more. Fifteen percent spent at least $10,000 on improvements last year, up from 10% in 2019. And about one-third (34%) said they spent $5,000 or more last year.
Maintenance and Repairs
It typically takes thousands of dollars to keep a home in tip-top shape — an average of $4,283 annually. And this doesn’t include emergency repairs. Some of the most common home repairs include painting, major appliance repair and plumbing, and the most common maintenance tasks are pest control, landscaping and housekeeping.
Depending on where you live, property taxes can be a major expense. On average, homeowners spend $2,795 each year on property taxes, the report found. But this number can be much higher in states with high property taxes. In New Jersey, which has the highest property taxes in the U.S., the average homeowner spends $8,796 each year.
Homeowners’ insurance costs also vary widely by state, but the national average is now $1,516.
Together, these hidden costs can be a major financial strain on many homeowners. “For the average American, it’s a very challenging time to own a home,” said Matt Brannon, data writer at Clever Real Estate.
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