Utilities Add up to 25% of Home Ownership
As we all know, owning a home involves more than just paying the monthly mortgage payment. When adding up what you can afford it is important to include what the cost of the utilities will do to your monthly budget.
There’s a reason utility bills feel like they’re taking a bigger bite out of households’ budgets. On average, utility costs—electricity natural gas, water, and sewer—add 25 percent to monthly housing costs for homeowners and 21 percent to housing costs for renters, according to a newly released white paper by ATTOM Data Solutions.
Monthly utility costs require 7 percent of a person’s average wages across 931 counties analyzed. When utility costs are included, buying a median-priced home requires more than 43 percent of a person’s income, the study showed.
Inputting your zip code in the diagram below will give you an idea of what your area cost for utilities are.