What The Average Mid-Sized American Home Costs
Buying a home can be a difficult process. One of the first challenges that most individuals looking for a new home face is determining how much they can afford and calculating their total cost of living.
While the true cost of living depends largely on your geographic location, you can still get a good idea of what you should expect to spend based on the average cost of a mid-sized home in the United States.
For a family with an average income living in a middle-class neighborhood, here is what you can expect to spend on your home.
Zillow keeps yearly records regarding the median home listing and sale prices in the United States.
According to this data, median home prices in the country have risen by 7.5% over the last year. The current median home price in America is $225,300, and Zillow expects this price to increase by an additional 6.6% over the next year. This current median price represents a price of $150 per square foot.
Additionally, Zillow states that the current median home listing price is $275,000 with the median sale price being $226,500.
Of course, this can vary significantly by states. Washington, for example, has a median home price of $334,000 while Idaho’s median home cost is $189,800.
Annual Maintenance Costs
In addition to the average cost of a mid-sized American home, you need to consider potential maintenance costs. While there might not be anything that needs to be immediately taken care of when you move in, you are sure to run into problems over the years.
A good rule of thumb is to follow the one percent rule. This rule indicates that you should plan to set aside at least one percent of your home’s total cost for annual maintenance. If your home costs $200,000, you should try to save at least $2,000 for maintenance on a yearly basis.
Other factors like the age of your home or its location might lead to additional maintenance costs. Homes in areas that experience severe weather are more likely to need frequent maintenance.
Utility costs also need to be factored into the total cost of purchasing and owning a home. According to Nationwide, the typical United States family should expect to spend at around $2,000 per year on utilities. This includes:
Of course, the total cost of certain utilities like gas, electricity, and internet depends on how often you use them. However, $2,000 – $3,000 per year is what the average middle-class American family can expect to pay for utilities.
Homeowners insurance is another important expense that every homeowner should have. This insurance can protect your home against theft, natural disasters, and other potentially devastating events.
ValuePenguin recorded the average cost of homeowners insurance nationwide to be $1,083; however, depending on the state, your insurance rate could be as low as $600 or as high as $2,000.
Again, these costs often vary significantly by state, city, and county; however, they can give you a good idea of what you can expect to spend on your home as a middle-class family in the United States.