Where Housing Costs Less, Energy Costs More

November 3, 2016 | Comments Off on Where Housing Costs Less, Energy Costs More

In metros were home owners pay the least amount for housing, they often spend some of the highest amounts on energy each year. On the other hand, in some of the priciest areas, owners get more of a break, according to a new report by Redfin.

Energy costs should be an important factor guiding home buyers. After all, energy bills can increase total housing costs by as much as 50 percent or more. This is particularly common in the Rust Belt, Redfin researchers note.

Learn how low energy prices might affect housing in certain areas.

Home owners living in Cleveland, Rochester, Cincinnati, and Buffalo pay more for energy—relative to their annual housing costs —than home owners in the 71 other metro areas nationwide that Redfin analyzed. Meanwhile, seven of the 10 metros where home owners spend the least on energy (relative to their annual mortgage) are located in California. For example, in San Francisco and San Jose, energy bills add 2 to 3 percent to annual housing costs, some of the lowest in the nation.

According to Redfin’s study, the following cities have the highest energy costs in the nation:

  • Cleveland, Ohio, where home owners spent an average of $3,500 in annual energy costs, amounting to 54% (energy as percent of housing costs)
  • Rochester, N.Y.: $2,900; 50%
  • Cincinnati: $3,600; 47%
  • Buffalo, N.Y.: $3,000; 46%
  • Indianapolis, Ind.: $3,000; 40%
  • Providence, R.I.: $4,000; 37%
  • Columbus, Ohio: $3,300; 36%
  • Manchester, N.H.: $4,200; 32%

Meanwhile, these cities have the lowest energy costs nationwide:

  • Portland, Ore.: where home owners spent an average of $1,000 each year in energy bills, amounting to 6% (energy as percent of housing costs)
  • Honolulu: $1,800; 5%
  • Ventura County, Calif.: $1,200; 5%
  • Los Angeles: $1,200; 4%
  • San Diego: $1,100; 4%
  • Oakland, Calif.: $1,400; 4%
  • Seattle, Wash.: $900; 4%

Source: Redfin


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