This is the staggering amount homeowners spend on costs besides their mortgage
Homeowners spend nearly $18,000 a year on expenses aside from their mortgages each year, and nearly 67% of homeowners have regrets about their purchase.
According to a report from Real Estate Witch, the average costs for homeownership outside of mortgage payments went up $500, or about 3% since last year.
The report says nearly nine in 10 homeowners discovered the true cost of owning a home is more than they expected when they made the purchase. Some 28% of homeowners said they’ve considered going back to renting, and nearly half say they spend more owning a home than they did renting.
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Nearly half of homeowners surveyed said they believe they overpaid for their houses.
A survey of 1,000 homeowners found that nearly one in five struggle to afford maintenance, so much so that they’d have to go into credit card debt to fund a $500 emergency repair.
What homeowners spend on costs besides their mortgages
The average homeowner spends the following on additional expenses, according to Real Estate Witch:
- $5,362 on utilities
- $4,392 on maintenance
- $3,784 on renovations
- $2,904 on property taxes
- $1,516 on homeowners insurance
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Homeowners surveyed said they spend about 11 hours a week – or 24.5 days a year – working on home upkeep and maintenance. The report says the high cost of homeownership may explain why 29% of homeowners plan to sell their house in the next five years. About half of homeowners believe owning a home is not attainable for the average American.
Most common regrets for homeowners
A house for sale in the Naples Park neighborhood of Naples, Florida, US, on Tuesday, Feb. 13, 2024. Photographer: Lisette Morales McCabe/Bloomberg via Getty Images
Homeowners surveyed had the following regrets when it came to buying their homes:
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- Their home is too small or lacks features they need (19%)
- Their home requires too much maintenance (18%)
- The location is not ideal (15%)
- Their monthly mortgage payments are too high (15%)
- They didn’t ask enough questions/complete enough research before purchasing (14%)
- They bought a fixer-upper or older home (14%)
- They dislike their neighbors (14%)
- They were unprepared for hidden costs (13%)
- Their interest rate is too high (13%)
- They dislike their homeowners association (HOA) (13%)
About a third of homeowners say they’d be less stressed if they didn’t own a home.