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May
15
Clever Real Estate Studies Reveal the True Costs of Homeownership

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ST. LOUIS, May 1, 2019The first study shows that the average homeowner spends $2,676 on maintenance and repairs, $6,649 on home improvements, $2,600 on property taxes and $1,228 on homeowners insurance every year.

However, these numbers don’t tell the whole story.

Millennials are feeling the pressure of homeownership more than any generation, and a full report that compares millennial and Baby Boomer homeowners can be found here.

Key Insights:

● 59% of homeowners making renovations are using some combination of credit cards, personal loans, and home equity loans to fund their projects
● 1 in 4 homeowners have less than $500 saved for home repairs
● In spite of the costs, 65% of homeowners said they’ve never felt home buyer’s remorse
● Where you live matters: On average, New Jersey homeowners pay five times more in property taxes on a $206,000 home than they would if they lived in Alabama

Millennial Insights:

● Millennials are twice as likely to be stressed about homeownership than Baby Boomers
● 67% of millennials put less than 20% down, leading to higher mortgage payments
● Millennials are three times as likely to use a personal loan and twice as likely to use a credit card to finance their renovations than Baby Boomers
● 43% of millennials were surprised by the cost of maintaining their homes

Almost every homeowner (75%) is planning renovations in the next five years, but millennials are planning 50% more renovations than Baby Boomers. Unfortunately, they’re also three times as likely to use a personal loan, and twice as likely to use a credit card to finance their renovations.

Combined with higher than average mortgage premiums due to putting less down, Millennials are twice as likely to be stressed by homeownership. It’s no surprise (to us) that 43% of Millennials were surprised by the cost of maintaining their homes.

The full reports contain additional data, shareable graphics, our methodology, and much more.

The True Cost of Homeownership study can be found here
The Millennial vs. Baby Boomer Homeowner study can be found here

Written By: THOMAS O'SHAUGHNESSY