Owning a home in the U.S. is reportedly much more expensive today than it was four years ago, even as home listings surged in May.
Homeownership costs have jumped 26% since the pandemic began, as expenses such as taxes, utilities and insurance shot up during a period of elevated inflation across the entire economy, Bloomberg reports.
Owning and maintaining a single-family home cost $18,118 a year in March, excluding mortgage payments, according to personal finance website Bankrate.
The yearly figure, which is based on Redfin's March median sales price of $436,291, is $1,510 per month higher than when the pandemic broke out in March 2020, Bloomberg reported. The median sale price for a single-family home in March 2020 was $311,287, according to Redfin Corp
Bankrate factored in property taxes, home insurance, energy costs, internet and cable bills, and 2% of the sales price for maintenance in its analysis based on Redfin median sale prices.
Realtor.com offered slightly different median sale prices in the U.S. for March 2020 and March 2024. A single-family home had a median sale price of $320,000 in March 2020 versus a median sale price of $424,900 in March of this year, according to its data.
Home maintenance accounted for the majority of ownership expenses in Bankrate's analysis, so states with the biggest spikes in home prices saw the highest percentage rise in total homeownership costs. Property taxes were the second-largest cost in high-tax states such as Connecticut and New Jersey, while energy bills came in second in other states, according to Bloomberg.
Inflation-driven expenses soared the highest in Utah, up 44% since 2020, followed by 39% in Idaho and 38% in Hawaii. Alaska and Texas experienced the lowest increases of 14%, while annual cost totals ranged from $11,599 in Kentucky and $29,051 in Hawaii.
