Good news for residents at Bayside! A recent study published by The National Association of Home Builders (NAHB) reported that home buyers of newer homes can afford more house for their dollar, based on a comparison of general maintenance fees such as utilities and property tax. In a comparison of older homes built before 1960 versus those built after, it was discovered that operating costs are significantly lower thus allowing home buyers to spend more.
Essentially, home buyers of newer homes are able to spend a little more on their home, knowing that the operating costs seen yearly will be far less than if purchasing a home built prior to 1960. According to NAHB, buyers can spend 23% more for a newer home versus an older home.
The estimated operating costs for a new home built after 2008 were approximately $241 annually, or averaging 3% of the home’s value. This is significantly lower for homes built prior to 1960, which yielded maintenance costs of $564 annually, or 5% of the home’s value on average.
“Home buyers need to look beyond the initial sales price when considering whether to buy new construction or an existing home,” said Rick Judson, chairman of NAHB. “They 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.”