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San Jose Leads Nation In Annual Home Ownership Costs

SAN JOSE (CBS SF) – As already high Bay Area home prices keep rising, researchers find those who manage to purchase a home, perhaps unsurprisingly, also deal with the highest annual homeowner costs in the country.

According to an analysis from Zillow and Thumbtack, the San Jose market leads the nation in the annual expenses of owning and caring for a home, at $20,655 per year.

The expenses include $17,255 in what the analysis labels "necessary" costs such as property taxes, homeowner's insurance and utilities, and $3,400 in maintenance, which includes cleaning, lawn care and HVAC repairs.

ALSO READ: 'Buyer Fatigue' May Be Setting In For Bay Area Homes Under A Million

The San Francisco market (which also constitutes Alameda, Contra Costa, Marin and San Mateo counties) had the second highest homeowner costs in Zillow's analysis, $17,758 per year, with $14,358 in taxes, insurance and utilities, along with $3,400 in maintenance.

"Ongoing maintenance costs and annual fees are some of the most common surprises for first-time home buyers after they finally become homeowners. While they are shopping, buyers tend to focus on their monthly mortgage payments, but other needs quickly add up after move-in," said Zillow Senior Economist Aaron Terrazas.

Nationally, the analysis found the average "hidden" costs of homeownership to be $9,394 a year, about half of what it is in the Bay Area, with $6,327 in taxes, insurance and utilities, along with $3,067 in maintenance.

As of June 2018, Zillow determined the median home value in the San Jose market at $1,287,600, while it is $953,600 in the San Francisco market.

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