The True Cost of Buying a Home: Why Affordability Is More Than Your Mortgage
Quick Facts
• In 2024, 35% of U.S. homebuyers underestimated non-mortgage living costs.
• Areas with “low property taxes” often offset that with higher
transportation or food costs.
• The average buyer spends $12,000/year on location-driven living expenses beyond housing.
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1. Why Affordability Is More Than a Monthly Payment
When buyers calculate “what they can afford,” they typically think about:
- Mortgage principal & interest
- Property taxes
- Insurance
But these costs are only half the story.
Day-to-day living expenses—like commuting, groceries, child care, and energy costs—can vary dramatically from one location to another.
Two homes with identical mortgage payments can differ by $1,000+/month in living costs.
2. What Drives the Hidden Costs
| Category | Why it varies |
|---|---|
| Transportation | Long commutes, gas prices, lack of public transit |
| Utilities | Older home systems, local energy rates, climate zone |
| Groceries | Regional supply chains, inflation volatility |
| Healthcare | County health costs, insurance availability |
| Child care & education | Private vs public school reliance, licensing costs |
Even neighborhoods with low home prices may have high lifestyle costs.
3. Takeaway
A home’s price is only the beginning.
PropertyInsights101 helps buyers see the total cost of living before committing—not after closing day.
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