To answer this question, SmartAsset looked at data across 20 of the largest cities in the U.S. We calculated the cost of homeownership in the first year after a home is purchased, using six metrics: median home value, down payment, average closing costs, monthly mortgage payment, property taxes and homeowners insurance. For details on our sources and how we put all the information together to create our final rankings, read the Data and Methodology section below.
Key Findings
- First-year homeownership costs differ across the study by a factor seven. In Indianapolis, Indiana, you can expect to spend over $50,000 in your first year of homeownership, 7.3 times less than in San Francisco, California, where costs total $364,900.
- It takes twice as much to close in New York City. The median home value in New York City is $710,200. While that isn’t the highest median home value in the study, closing costs in the Big Apple are more than double what they are anywhere else, thanks in large part to a citywide transfer tax.
