The 10 least expensive states to own a home
Jordan Pandy
- The average American pays $623,290 over the time of owning a home, fintech company Self found.
- Taxes, household repairs, and home improvements contribute to the high costs of being a homeowner.
Any savvy home buyer knows the costs of homeownership don't stop at the closing table. But a new study finds the payments a homeowner makes over the span of living in a home are almost twice as much as the cost of the average US house.
Fintech company Self took a look at how much homeowners spend, on average, over the period of owning a single home. The study cites Redfin's findings that the average American homeowner spends 13.2 years in one house, and in that time spends $623,290 on the expenses of owning a home. According to Zillow, the average cost of a home in the US is $349,770, as of August.
The expenses of owning a home cited by Self include down payment, closing fees, mortgage repayments, moving costs, taxes, ongoing maintenance, renovations, and utilities. Mortgage payments, which Insider previously reported average $2,823 a month on a 30-year fixed mortgage, are an expected cost to consider, but monthly utilities, as well as unexpected repairs and renovations add to costs, too.
According to a survey of 6,500 people by home services website Angi cited in the Self study, homeowners spent an average of $8,484 on home improvement projects, and $2,467 on home maintenance in 2022.
Of course, the overall costs to maintain a home fluctuates state to state. Hawaii is one of the more expensive states to live in, and has the highest cost of homeownership, according to Self. The average Hawaii homeowner will pay $1,482,229 in expenses like closing costs, mortgage repayments, maintenance fees, and utilities over 13.2 years.
But there's good news for prospective homebuyers: There are states where the costs of homeownership are significantly less than the national average. Here are the 10 least expensive states to own a home, according to Self.
10. Alabama
Average cost of owning one home over 13.2 years: $430,415
Average purchasing and closing costs: $30,851
Average cost of mortgage repayments over 13.2 years: $216,374
Average cost of maintenance for one home over 13.2 years: $115,666
Average cost of utilities for one home over 13.2 years: $65,413
9. Indiana
Average cost of owning one home over 13.2 years: $421,467
Average purchasing and closing costs: $31,211
Average cost of mortgage repayments over 13.2 years: $216,153
Average cost of maintenance for one home over 13.2 years: $121,224
Average cost of utilities for one home over 13.2 years: $50,767
8. Kansas
Average cost of owning one home over 13.2 years: $418,927
Average purchasing and closing costs: $29,284
Average cost of mortgage repayments over 13.2 years: $224,980
Average cost of maintenance for one home over 13.2 years: $112,928
Average cost of utilities for one home over 13.2 years: $49,623
7. Louisiana
Average cost of owning one home over 13.2 years: $410,359
Average purchasing and closing costs: $30,945
Average cost of mortgage repayments over 13.2 years: $208,966
Average cost of maintenance for one home over 13.2 years: $113,651
Average cost of utilities for one home over 13.2 years: $54,685
6. Kentucky
Average cost of owning one home over 13.2 years: $401,753
Average purchasing and closing costs: $29,959
Average cost of mortgage repayments over 13.2 years: $209,996
Average cost of maintenance for one home over 13.2 years: $112,320
Average cost of utilities for one home over 13.2 years: $47,366
5. Iowa
Average cost of owning one home over 13.2 years: $400,954
Average purchasing and closing costs: $29,837
Average cost of mortgage repayments over 13.2 years: $198,141
Average cost of maintenance for one home over 13.2 years: $110,333
Average cost of utilities for one home over 13.2 years: $60,531
4. Ohio
Average cost of owning one home over 13.2 years: $394,486
Average purchasing and closing costs: $31,085
Average cost of mortgage repayments over 13.2 years: $200,118
Average cost of maintenance for one home over 13.2 years: $111,879
Average cost of utilities for one home over 13.2 years: $49,292
3. Oklahoma
Average cost of owning one home over 13.2 years: $390,235
Average purchasing and closing costs: $27,515
Average cost of mortgage repayments over 13.2 years: $214,453
Average cost of maintenance for one home over 13.2 years: $102,447
Average cost of utilities for one home over 13.2 years: $43,709
2. Mississippi
Average cost of owning one home over 13.2 years: $380,794
Average purchasing and closing costs: $25,027
Average cost of mortgage repayments over 13.2 years: $193,343
Average cost of maintenance for one home over 13.2 years: $96,511
Average cost of utilities for one home over 13.2 years: $63,801
1. West Virginia
Average cost of owning one home over 13.2 years: $321,194
Average purchasing and closing costs: $22,841
Average cost of mortgage repayments over 13.2 years: $150,429
Average cost of maintenance for one home over 13.2 years: $83,320
Average cost of utilities for one home over 13.2 years: $62,491
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