Homeowners Can Spend More Than $9,000 a Year on Hidden Homeownership and Maintenance Costs

SEATTLE and SAN FRANCISCO, July 31, 2017 /PRNewswire/ -- Nationally, U.S. homeowners can expect to spend $9,080 a year on average in hidden costs related to owning and maintaining a home, according to a new analysis from Zillow (R) and Thumbtackⁱ. Since nearly half (47 percent) of home shoppers today are first-time buyers, many of these extra costs may come as a surpriseⁱⁱ.

To help with budgeting, Zillow and Thumbtack identified several common but often overlooked home expenses and calculated what homeowners could expect to pay for them around the country. The analysis also included utility cost estimates from UtilityScore.

Nationally, homeowners pay an average $6,059 per year in to cover homeowners insurance, property taxes and utilities, three common, but sometimes overlooked home expenses. San Francisco homeowners pay the most of the metros analyzed ($13,019 a year), primarily due to the market's high home values and property taxes. Indianapolis homeowners pay the least at $4,699.

Most U.S. homeowners (96 percent) have made some kind of improvement to their homeⁱⁱⁱ. While many complete these projects themselves, those who hire a professional can expect to spend more than $3,021 a year on average for carpet cleaning, yard work, gutter cleaning, HVAC maintenance, house cleaning and pressure washing, the six most common hired home projects requested by homeowners on Thumbtack. Labor costs can vary significantly by region, with Seattle homeowners paying as much as $4,052 a year on average for those six projects, whereas in San Antonio they pay just $1,962 on average.

"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," says Svenja Gudell, Zillow's Chief Economist. "Before starting a home search, take a good look at your finances to determine a monthly payment range you can comfortably afford. While that big back yard or larger home may be appealing, it is important to consider how much maintaining those spaces could cost you."

"While it may be tempting for homeowners to think they can cut costs by doing home maintenance projects themselves, hiring a trained professional to take them on can save them time, anxiety and most likely money in the long run," said Lucas Puente, Thumbtack's Economist. "Across the U.S., buyers should be prepared to spend at least a few thousand a year in home maintenance costs."

To help buyers better understand the total cost of homeownership, Zillow Group, Inc. launched RealEstate.com (R), a website that allows people to search for homes by the "All-In Monthly Price" of owning that home, like utilities, taxes, HOA's and closing costs. With more than a third of buyers going over budget, knowing all the extra or hidden costs associated with homeownership can help buyers set more realistic budget^iv.

Zillow

Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. Zillow serves the full lifecycle of owning and living in a home: buying, selling, renting, financing, remodeling and more. In addition to Zillow.com (R), Zillow operates the most popular suite of mobile real estate apps, with more than two dozen apps across all major platforms. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG) and headquartered in Seattle.

Zillow and Zillow.com are registered trademarks of Zillow, Inc., and RealEstate.com is a registered trademark of FastStart Real Estate Services Holdco, Inc.

Thumbtack

Thumbtack is a local services marketplace that connects customers who need to get things done with local professionals who can help. From plumbers and painters to DJs and personal trainers, Thumbtack helps millions of customers find the right professional for their project in over 1,000 categories. This translates to more than $1 billion in annual revenue for our professionals across the U.S., helping them grow their businesses on their own terms. Founded in 2009 and headquartered in San Francisco, Thumbtack is backed by over $250 million in investment from Sequoia Capital, Google Capital, Tiger Global Management, Javelin Investment Partners and Baillie Gifford.

ⁱ Zillow and Thumbtack's Hidden Costs Homeownership report factored in three common, but sometimes overlooked monthly expenses (property taxes, homeowners insurance and utilities from Utility Score) as well as six basic home prep costs from Thumbtack. Thumbtack looked at tens of thousands of quotes from small business professionals around the country and determined the average cost for each expense within the selected metros. For the purposes of this analysis, carpet cleaning, yard work, gutter cleaning, HVAC maintenance, house cleaning and pressure washing were identified as six of the most popular home maintenance-related projects.
ⁱⁱ According to the 2016 Zillow Group Report on Consumer Housing Trends.
ⁱⁱⁱ According to the 2016 Zillow Group Report on Consumer Housing Trends.
^iv According to the 2016 Zillow Group Report on Consumer Housing Trends.

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SOURCEZillow