Even after achieving the dream of homeownership in Los Angeles, the incidental costs for property maintenance and management exceed $20,000 annually.
According to a joint report released on the 22nd by real estate platform Zillow and home services marketplace Thumbtack, the average annual homeownership cost for a Los Angeles homeowner was tallied at $22,915. This represents a 42.5% increase compared to five years ago, meaning owners pay an extra $1,910 monthly on top of their mortgage principal and interest payments.
The cost of homeownership in the LA area was about 38% higher than the national average of $16,566. This ranks as the third-highest among major metropolitan areas nationwide, following New York ($25,111) and San Francisco ($24,383).
In particular, the upward trend in home repair and management costs in the LA area is steep. LA recorded a 27% increase year-over-year, marking the highest growth rate among the surveyed major cities. The report attributed this to surging repair demand from wildfire damage, expanding need for home management services, and high labor costs.
Looking at national homeownership costs by category, repairs and maintenance took up the largest portion at $11,171 per year. Property taxes followed at $3,129, and homeowners insurance at $2,266. Repair and maintenance costs alone accounted for about 67% of the total ownership expenses.
Among the 30 major metropolitan areas surveyed, homeowners insurance premiums skyrocketed by over 50% in 19 areas over the past five years. Dallas recorded the highest increase at 75%, followed by Tampa (71%), Denver (70%), and Houston (69%).
Kara Ng, senior economist at Zillow, advised that many families focus too heavily on buying a home itself while underestimating the incidental costs of actual ownership and occupancy. She urged buyers to thoroughly weigh insurance, taxes, and maintenance costs beforehand to ensure the total fits within a truly manageable budget.
