Most families around the country who have small children tend to live in their first home, or start-up home, for approximately 7 years. Then, its common for those families to look at expanding or moving up to a larger home. It’s families like this, known as move up buyers, that Zillow recently studied to determine what the cost implications of “moving up” might be.
Zillow found there are two determining factors that determine the costs of moving up…size and location. Let’s look at home size first. Let’s say that you’re moving from a two bedroom house to a three bedroom house in the same zip code. The average increase nationwide in extra mortgage costs would be $447 per month or $5,300./yearly. The average increase nationwide in extra mortgage costs from a one bedroom home to a two bedroom home would be $192 per month or $2,244./yearly. The average increase nationwide in extra mortgage costs for a three bedroom to a four bedroom would be $614 per month or $7,368./yearly.
Now, let’s look at location. In the Midwest, move-up buyers will get more bang for their buck. Instead of paying the nation’s average of $447. more a month, move up buyers in Chicago, Cincinnati, Cleveland, Philadelphia, Indianapolis and St. Louis will pay less, approximately $150.00 more monthly. Move up buyers in popular coastal markets can expect to pay an additional $500 per month and those in sizzling hot markets such as Los Angeles, San Francisco and San Jose can anticipate increased mortgage costs of approximately $1,000 to $2,244 per month.
Here’s a look at approximate increased monthly mortgage costs in 25 metro markets:
New York City – $302 (a bargain) Seattle – $574
San Jose – $2,224 San Francisco – $1,660
Denver – $601 Los Angeles – $1,033
Miami – $599 Boston – $512
Detroit – $280 Portland – $497
Minneapolis – $252 Charlotte – $224
Washington DC – $429 Pittsburgh – $198
San Antonio – $198 Austin – $372
Chicago – $144 St. Louis – $155
Dallas – $365 Kansas City – $113
Las Vegas – $357 Baltimore – $105
Philadelphia – $77 Cleveland – $74
Phoenix – $302
These numbers were compiled by Zillow Analysis of Estimates and the U.S. Census Bureau in its American Community Survey.
