The National Association of Home Builders (NAHB) recently released a new study which found that new home owners are able to purchase homes more on the expensive side, due to the decreased cost in maintaining newer homes. The study compared and analyzed the costs of utility, maintenance, property tax and insurance costs for new versus older homes.
It revealed that home buyers can afford to spend 23% more for a new home versus one built before 1960, while still maintaining the same amount of annual costs the first year. While mortgage payments will be more with a new, higher priced home, home owners will have annual costs about the same as if they’d purchased an older home with smaller mortgage payments and higher operating costs.
As NAHB Chairman Rick Judson pointed out, “Home buyers need to look beyond the initial sales price when considering whether to buy new construction or an existing home.They [home buyers] will find that with the higher costs of operating an older home, they can often afford to spend more to buy a new home and still have annual operating costs that fit their budget.”
The NAHB found that homes built prior to 1960 yield maintenance costs of $564 per year. Homes built after 2008 averaged $241. This is good news for new home buyers in Loudoun County—especially residents and home owners at One Loudoun! The study also found that operating costs averaged 3% of the home’s value for post-2008 homes, versus those built pre-1960 which yielded operating costs of nearly 5% the home’s value.
Source: National Association of Home Builders