A Bankrate study reveals that Colorado homeowners face extra expenses beyond their monthly mortgage costs.
Too many potential homeowners only plan for their down payment and mortgage payment.
But the Bankrate study shows Colorado homeowners face an average of $25,766 for upkeep and other costs, including property taxes, insurance, and utilities.
Inflation and aging housing stock pushed annual home maintenance costs to about $8,800, the highest expense Bankrate has recorded. At the same time, the increased number and severity of natural disasters and rising rebuilding costs have led to higher insurance premiums.
Colorado’s costs surpass the national average of $21,400, ranking Colorado as one of the top 10 states with the highest costs for home maintenance and property taxes.
HOA costs
Homeowners Associations (HOAs) are becoming increasingly common, with 40.5 percent of listings in HOA communities in 2024, up from 39.2 percent in 2023, according to research by Realtor.com.
HOA fees are also getting more expensive, with the median monthly fee increasing from $100 to $125.
The Denver metro area, which includes Denver, Broomfield, and surrounding counties, has a significant number of HOAs. Colorado has over 11,300 condo and community associations.
Study findings:
- In 2024, 40.5% of for-sale listings had a nonzero HOA fee, an increase from 39.2% the previous year. The median HOA fee was $125 per month, up from $110.
- HOAs are more prevalent in newly constructed communities than in older ones, but their influence and membership costs are rising across homes of all ages.
- Condos, row homes, and townhomes are more likely to have HOA dues, often at higher rates than single-family homes, although HOA obligations are expanding for all types of listings.
Insurance costs
A Zillow analysis shows that since 2019, home insurance premiums have increased by 38% nationally, while median homeowner income climbed only 22%.
Premiums are increasing the most in areas with higher climate risk, such as Colorado.
Homeowners in Colorado feel the financial strain as home insurance costs continue to rise.
According to a report from Insurify, premiums will rise by approximately 11% this year, reaching around $6,630.
Colorado has some of the highest insurance rates in the United States, currently ranking fourth.
The risks associated with hail and wildfires are significant factors contributing to these rising insurance costs. Over 300,000 homes in Colorado are at risk of wildfire damage.
As premiums continue to climb, it becomes increasingly challenging for homeowners to find affordable insurance coverage.
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
