New research says annual ownership cost can matter as much as sticker price when comparing homes, because mortgage interest, taxes, depreciation, risk, and appreciation vary.
Economists' annual user cost avg. ~5% of home value nationwide, but local variation was wide: some homes ran near ~7%, others near ~2%.
Two $500K homes can carry very different yearly costs: near $35K at ~7% versus $10K at ~2%, making rent comparisons more meaningful.
Before a 2018 federal tax law, itemizing deductions lowered effective ownership costs; afterward, many owners used the standard deduction and home-linked tax benefits shrank.
Bottom line: the research offered buyers a practical lens for deciding where to live—compare annual ownership cost with local rent, not price alone.
Homeownership Costs Go Beyond the Price Tag

Leave a Reply