Coloradans are paying a lot on ‘hidden’ home costs. Here’s why
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- Colorado ranks 8th nationally for hidden homeownership costs, totaling $25,766 annually.
- High maintenance costs, averaging $13,014, significantly contribute to Colorado’s elevated expenses.
Owning a home in Colorado comes with much more in the way of hidden costs than in most other states, according to a new study.
The annual “hidden costs” of homeownership — property taxes, utility bills, insurance and maintenance — are $25,766 for Colorado, about 20% more than the national average of $21,400, according to Bankrate.
Colorado sits at No. 8 in the nation for the price tag of hidden costs, the only interior state to land in the top 10. The higher costs on the coasts should not be surprising, as their higher home values drive up property taxes and the amount of money needed for home maintenance, both of which are among the hidden costs.
Bankrate also analyzed prices for homeowners insurance, utilities, internet and cable.
What makes owning a home in Colorado expensive?
Almost the entire $4,366 gap between the national average hidden costs and Colorado’s average is found in the cost of maintenance.
On average, Coloradans should expect to spend about $13,014 on maintenance, $4,206 more than the national average of $8,808 in the Bankrate study.
Coloradans also spend more annually than the national average on homeowners insurance ($3,194 versus $2,267) and a bit more each month on internet and cable ($1,577 annually versus $1,515).
Homeowners in Colorado actually should expect to spend less on average for property taxes ($3,909 versus $4,316) and utilities and energy costs ($4,072 versus $4,494) this year, according to the study.
What states have the most hidden home ownership costs?
- Hawaii: $34,573/year
- California: $32,262/year
- New Jersey: $29,751/year
- Massachusetts: $29,277/year
- Washington: $27,444/year
(New York was excluded from the study due to data limitations.)
What states have the lowest hidden costs of owning a home?
- West Virginia: $12,579/year
- Mississippi: $14,810/year
- Indiana: $14,903/year
- Missouri: $15,349/year
- Arkansas: $15,362/year
What was the methodology for the study?
Bankrate used the most up-to-date state and local data it could find on expenses of homeownership beyond a mortgage, including property taxes, homeowners’ insurance, utility and energy costs, internet and cable bills and home maintenance budgets.
It estimated home maintenance costs at 2% of the median sale price for single-family homes in each state.
Other data were sourced from the bill payment company Doxo, property data provider ATTOM and internal Quadrant data. Where appropriate, it adjusted 2024 data for inflation using the Consumer Price Index.
Nate Trela covers trending news in Colorado and Utah for the USA TODAY Network.
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