When we purchased our home, we knew there would be some upfront costs to contend with. For one, we had a construction company working on a major project during renovations.
What we didn’t expect was a mini catastrophe. During the basement excavation, the dirt beneath our foundation gave way, and the right side of the foundation collapsed.
No one was hurt, but we were stunned.
This was right before Christmas, the construction crew was looking forward to some time off, and we suddenly realized all of our plans of moving in would be delayed until we addressed some serious issues.
We never planned for the foundation to give out.
But that’s the way homeownership goes: Although you do the best to prepare for the costs involved, sometimes the unexpected happens.
At the end of the day, buying a home simply costs more than what you pay for your mortgage every month.
In fact, if you decide to live in the Pittsburgh region, you could end up spending $10,000 a year on extra costs just in the normal use of your home!
5 Hidden Costs of Homeownership in Pittsburgh and Allegheny County
Owning a home comes with a ton of expenses, many of which you might not think about as you’re touring your favorite houses and picturing yourself relaxing in the backyard.
To help, we’ve outlined some of the hidden costs of buying and owning a home in Allegheny County.
Hidden Cost 1: Taxes
Pennsylvania generally has higher property taxes (1.5% on average) than the national average (1.07%). In the City of Pittsburgh, you’ll pay taxes to Allegheny County, the City of Pittsburgh, and your school district. If you have a $200,000 home, you’d pay $4,462.86.
If you like to save throughout the year or you decide to have your payments drawn monthly, you’ll need to set aside $372 a month to cover the property taxes on your $200,000 home.
Hidden Cost 2: Appliances
In Pittsburgh, your furnace works hard in the winter while your A/C works overtime in summer. These extreme seasonal demands place a ton of strain on these appliances, which means you’ll need regular maintenance to ensure they continue working properly. Over time, your furnace and A/C will become less and less efficient when compared to new products on the market and they’ll generally cost more to maintain. Eventually, you’ll need to replace them altogether, which could cost hundreds or thousands of dollars at a time.
Even the appliances you use every day can quickly become expensive. Your refrigerator, stove, and microwave can all break down over time, and replacing any one of them could cost hundreds of dollars, depending on how much technology you want in your kitchen. Similar story if you have an in-house washer and dryer: these are expensive appliances that won’t last forever!
Hidden Cost 3: General Maintenance
The general rule is to expect to spend 1% of your total home value on maintenance every year. That may not seem like a large number, but it can turn into quite a bit of cash, depending on your home.
If you have a $200,000 home, you should expect to spend about $2,000 a year (nearly $170 a month) on maintenance. Clearing the gutters, mowing the lawn, deep cleaning your carpets every spring—all of these maintenance activities have costs involved, even if you manage them yourself.
If you’re a first-time homebuyer, the first year can be extra costly with other “firsts.” The first time you notice your grass getting too long, you may realize you need to buy a lawn mower. The first time your rain gutters start overflowing, you may realize you need to buy an extension ladder. The first time you kids track mud over the carpet, you may realize you need to buy a steam cleaner.
Of course, the need to buy new equipment decreases as you get to know your house, but the first few years can grow extra costly.
Hidden Cost 4: Utilities
If you’ve rented in the past, you may have been on the hook for some or all of your utilities. Depending on where you buy a house in the Pittsburgh region, you might find some of your costs go down. Having a well, for example, can cut your water bill—although you’ll need to pay extra if you have to dig a new well.
In general, though, you’ll move from an apartment into a larger house. That means more space to heat in the winter and cool over the summer, potentially more bathrooms with running water, and even more electricity to keep all of your lights powered.
If you’re unsure what to expect when looking at a house, look into your network to see if you know anyone who lives in the neighborhood. If you do, they can give you an idea of what you should expect.
Hidden Cost 5: Homeowners Insurance
Across the US, the average homeowner pays nearly $1,336 a year on homeowners insurance, according to Bank Rate. In Pennsylvania, however, that annual premium drops to $730 per year—$60.83 per month.
Keep in mind, however, that the true cost of homeowners insurance for you and your family will really depend on the coverage you decide to get.
Putting It All Together: What Does Owning A Home Really Cost in Pittsburgh?
Your monthly and annual costs of homeownership in Allegheny County will vary depending on dozens of factors, including the cost of your home, how much money you put down, and where you decide to live.
Taking your monthly mortgage payment out of the equation, here’s are some estimates that assume your home is worth $200,000:
Taxes: $4,462.86 a year
Appliances (here we’ll estimate one annual service call for heating, one annual service call for A/C, and replacing your kitchen appliances every 10 years): $400 a year
General Maintenance: $2,000 a year
Utilities (here we’ll estimate about $250 a month, including internet): $3,000 a year
Homeowners Insurance: $730 a year
With all of these costs laid you, you might pay an extra $10,150 per year on top of your mortgage payments—meaning you’ll need $845 a month to maintain your home over time.
Get the Help You Need
If you’re a new homeowner or you need help finding the right technician or assistance in your area, download our Pittsburgh neighborhood reports. You’ll find tons of information on local contractors, installers, and technicians in addition to everything you need to know about the nearest hospitals, police stations, shopping, parks, and more.
If you need further assistance, contact us at theblocks@blocksintheburgh.com. Ted and I have had our own share of homeowner experience, and we have years of experience in renovating, remodeling, and maintaining homes.
Cheers,
Julie & Ted