🚨 THE MORTGAGE ISN’T THE ONLY COST OF OWNING A HOME THAT’S GOING UP.

Most housing affordability conversations focus on one thing:

Mortgage rates.

And that makes sense. The monthly mortgage payment is usually the largest expense associated with owning a home. But there’s another cost quietly moving higher—one that homeowners cannot refinance, lock in, or defer.

Utilities.

👉 Residential electricity costs are up approximately 4% over the past year.

👉 Natural gas costs have increased 3.2%, including a 1.2% increase in June alone.

And here’s where the numbers can be misleading.

Utility costs now represent a smaller percentage of total homeownership expenses than they did a decade ago. But homeowners are still paying significantly more in actual dollars. In 2012, utilities for a median-priced home averaged approximately $170 per month. Today, that figure is roughly $270 per month. That’s an increase of about 60%.

At the same time, total homeownership costs have risen even faster, which means utilities now represent a smaller percentage of the overall cost of owning a home. But percentage points don't pay the utility bill. Actual dollars do. And this is an important reminder for both homeowners and prospective buyers:

🏠 The mortgage payment is only one part of the cost of owning a home. Two homes with the same purchase price can have dramatically different monthly ownership costs based on:

• Energy efficiency
• Age and condition
• Square footage
• Construction type
• Location
• Local utility rates

Jeff’s BLUF (Bottom Line Up Front):

Mortgage rates may dominate the housing conversation, but they are only one piece of the affordability equation. 

Some housing costs can be refinanced. Some can be negotiated. Some can be locked in.

Utility costs generally cannot.

That means the true cost of homeownership doesn't end with the purchase price or the mortgage payment. Before buying a home, the better question isn't just:

“Can the mortgage payment be afforded?”

The better question is:

“What will this home really cost to own every month?”

That’s the difference between simply buying a hou…and making a truly informed real estate decision.