Utilities Add 25% to Homeownership Costs
June 6, 2017
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, a real estate data firm, and UtilityScore, a software provider for solar and other home improvement companies.
Read more: 5 Ways to Trim Utility Costs This Summer
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.
“The risk to homeowners and lenders is great,” says Jacob Corvida, manager at the Rocky Mountain Institute, a nonprofit organization focused on efficient and restorative use of resources. “The antidote is to understand utility costs and include them in underwriting assessments.”
Source: RealtyTrac/ATTOM Data Solutions
Updated: October 15, 2019