Homeownership Costs Go Beyond the Price Tag

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.