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U.S. cities where first year of homeownership is most expensive

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There are many factors leading to rising housing costs across the United States.For example, rising interest rates, Even remote workThe first year of home ownership, in particular, can be particularly costly between the down payment, closing costs, mortgage payments, homeowner’s insurance, and property taxes.

New data from SmartAsset reveals typical first-year costs of home ownership in major US cities. Not surprisingly, those looking to own homes in the big cities start at a disadvantage because of the high housing prices in these areas.

SmartAsset looked at data for the 20 largest US cities. Specifically, we considered two categories: initial costs and annual recurring costs.

For upfront costs, SmartAsset used Zillow data to assume a 20% down payment for mid-priced homes and an average closing cost excluding escrow and upfront costs. Annual recurring expenses include mortgage payments, average property taxes, and homeowners insurance. The data also assumes a 30-year fixed rate mortgage with an interest rate of 6%.

These are the 10 cities with the most expensive first years of home ownership.

1. San Francisco

down payment: $316,439

annual cost of mortgage: $91,066

First year total cost: $426,997

2. San Jose, California

down payment: $288,955

annual cost of mortgage: $83,157

First year total cost: $391,935

3. Los Angeles

down payment: $193,199

annual cost of mortgage: $83,157

First year total cost: $263,999

4. San Diego

down payment: $192,376

annual cost of mortgage: $55,600

First year total cost: $263,999

5. Seattle

down payment: $190,589

annual cost of mortgage: $54,848

First year total cost: $261,495

6. New York

down payment: $152,304

annual cost of mortgage: $43,831

First year total cost: $231,918

7. Boston

down payment: $146,771

annual cost of mortgage: $42,238

First year total cost: $201,833

8. Austin, Texas

down payment: $132,476

annual cost of mortgage: $38,125

First year total cost: $191,611

9. Denver

down payment: $125,318

annual cost of mortgage: $36,064

First year total cost: $173,137

10. Phoenix

down payment: $84,095

annual cost of mortgage: $24,201

First year total cost: $116,403

If you’re interested in owning a home in one of these expensive places, the first thing to do is[question] Whether it makes sense to move to an expensive city if your income can’t support it,” said a certified financial planner, President and Founder of Bone Fide Wealth.

Plus, ask yourself if what the city offers is enough to “justify the inherently high cost” of living there, he tells CNBC Make It. .

Knowing where you stand financially in terms of what you make and what you spend is important, says Boneparth.

“If you’re moving to a place that’s inherently more expensive, you need to be there, you want to be there, or some combination thereof, there’s never a bad time to understand where your money is going and what you’re spending it on. No,” he says.

If you want to be able to invest more money in your home, you can start by reducing your daily expenses, such as eating less and taking fewer vacations.

But “if you cut too many expenses, you’ll start to feel more and more uncomfortable,” says Boneparth. I need to be able to say it.”

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