10 Cities Where Long-Term Home Costs Add Up Quickly
For most Americans, buying a home represents the single biggest purchase they’ll ever make. That includes not just the price of the home, but related costs such as property taxes, homeowners insurance and utility bills.
Here’s a look at 10 cities where long-term home costs can add up quickly. The list leans heavily toward cities with much higher-than-average tax rates, since homeowners have little way to control those costs.
Discover More: 20 ZIP Codes First-Time Homebuyers Can Afford
Read Next: 10 Subtly Genius Things All Wealthy People Do With Their Money — That You Should Do, Too
Property tax figures are based on Census Bureau data, which determined a national median tax rate of 1.03%. Insurance figures are from Insure.com, which estimated that the national average cost for homeowners insurance is $2,601 per year. The utilities data comes from a doxo analysis, which found that U.S. households spend a median $4,168 a year on utilities.
1. Austin, Texas
Effective property tax rate: 1.53%
Median property taxes paid annually: $6,616
Median home value: $378,300
Average annual insurance premium (statewide): $3,851
Median annual utilities bill: $4,668
Austin ranked as the nation’s eighth-most expensive big city in terms of property tax rates, according to a Stessa analysis of Census Bureau data. Texas ranks among the most expensive states for homeowners' insurance. Austin households also pay much higher-than-average utility bills.
2. Cleveland
Effective property tax rate: 1.51%
Median property taxes paid annually: $1,508
Median home value: $71,100
Average annual insurance premium (statewide): $2,160
Median annual utilities bill: $3,852
Cleveland came in at No. 9 among the most expensive big cities for property taxes, although low home values keep annual costs down. Its high tax rate offsets lower-than-average insurance premiums and utility costs.
3. Columbus, Ohio
Effective property tax rate: 1.62%
Median property taxes paid annually: $2,776
Median home value: $173,300
Average annual insurance premium (statewide): $2,160
Median annual utilities bill: $4,596
Columbus has one of the country’s highest effective property tax rates, along with higher-than-average utility bills.
4. Dallas
Effective property tax rate: 1.49%
Median property taxes paid annually: $3,840
Median home value: $231,400
Average annual insurance premium (statewide): $3,851
Median annual utilities bill: $5,040
Like many Texas cities, Dallas features the combination of higher-than-average property tax rates, insurance costs and utility bills.
5. Fort Worth, Texas
Effective property tax rate: 1.86%
Median property taxes paid annually: $4,155
Median home value: $209,400
Average annual insurance premium (statewide): $3,851
Median annual utilities bill: $5,232
Fort Worth is the third-most expensive big city when it comes to property tax rates.
6. Milwaukee
Effective property tax rate: 2.17%
Median property taxes paid annually: $3,122
Median home value: $133,600
Average annual insurance premium (statewide): $1,668
Median annual utilities bill: $7,056
Milwaukee is the most expensive big U.S. city for property tax rates. It also ranks as among the costliest cities for utilities, which offsets comparatively low homeowners insurance costs.
7. New York
Effective property tax rate: 0.61%
Median property taxes paid annually: $5,633
Median home value: $680,800
Average annual insurance premium (statewide): $1,812
Median annual utilities bill: $10,236
Although the Big Apple has comparatively low property tax and homeowners insurance rates, it ranks among the priciest for utility bills.
8. San Antonio
Effective property tax rate: 1.85%
Median property taxes paid annually: $3,260
Median home value: $171,100
Average annual insurance premium (statewide): $3,851
Median annual utilities bill: $4,728
San Antonio came in at No. 4 in terms of highest property tax rates in the country. Homeowners also pay among the most expensive insurance premiums.
9. San Francisco
Effective property tax rate: 1.00%
Median property taxes paid annually: $9,412
Median home value: $1,380,500
Average annual insurance premium (statewide): $1,404
Median annual utilities bill: $6,540
Despite lower-than-average property tax rates and insurance premiums, San Francisco’s expensive homes and high utility bills contribute to high overall costs.
10. San Jose, California
Effective property tax rate: 0.71%
Median property taxes paid annually: $9,766
Median home value: $1,382,800
Average annual insurance premium (statewide): $1,404
Median annual utilities bill: $6,948
Like San Francisco, San Jose is hurt by high home prices, which contribute to high annual tax bills even with lower-than-average rates. Utility costs are high, as well.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: