"Hidden" home ownership costs in Michigan
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Michigan homeowners spend an average of $16,000 a year on upkeep and other "hidden expenses," according to a Bankrate study.
Why it matters: Overlooked costs, beyond mortgage payments, can come as an unpleasant surprise for unprepared homeowners.
By the numbers: The average annual cost of owning a single-family home nationwide is $21,400 this year.
- That sum includes property taxes, insurance, utilities/energy, internet/cable and maintenance.
- Michigan sits far below that national average, and has the seventh most affordable hidden cost total of the 49 states studied (it didn't include New York).
Zoom in: Michigan's average yearly spending for homeowners insurance ($2,163), utilities ($4,022) and property taxes ($3,303) were all below the national average.
- The state does particularly well on home maintenance, coming in fifth most affordable at $5,042.
- But Michigan's internet and cable bill average is high for its overall rank. That came tied with the national average of $1,515.
Zoom out: East and West Coast states — where home values and utility costs run high — usually see the highest "hidden" homeownership costs, versus the Midwest, per the analysis.
The big picture: Inflation and "the nation's aging housing stock" have pushed annual maintenance costs to roughly $8,800, the steepest expense Bankrate tracked.
- Meanwhile, more frequent natural disasters have hiked insurance costs.
- Electric and gas bills are also on the rise: The U.S. Energy Administration said they've increased by almost 30% since 2021.
The bottom line: "Buying is just the beginning," researchers wrote in the report. "The squeeze on wallets intensifies after one becomes a homeowner."