In anticipation of a frenzied building season, the National Association of Home Builders is trying to get the word out to buyers they can afford a higher-priced new home.
Based on data from the Census Bureau and Department of Housing and Urban Development’s 2011 American Housing Survey, its possible buyers can afford a new home with a higher sticker price, as compared to an older home of equal value, because of operating costs.
That might seem like common sense to some, but the numbers are quite staggering
The NAHB found that “homes built before 1960 have average maintenance costs of $564 a year, while a home built after 2008 averages $241. Similarly, operating costs average nearly 5 percent of the home’s value for pre-1960 structures, while they average less than 3 percent when the home was built later than 2008.”
“Home buyers need to look beyond the initial sales price when considering whether to buy new construction or an existing home,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “They will find that with the higher costs of operating an older home, they can often afford to spend more to buy a new home and still have annual operating costs that fit their budget.”