GEORGETOWN, Ky. — Across the country, the dream of homeownership is increasingly challenging, and it’s not just mortgage payments contributing to the cost. A new study by Bankrate looked at the hidden cost of owning a home in each state.
Real estate agent Chantelle Pressley spends her days researching and making calls trying to find clients their perfect home. She says in the past few years she’s seen an influx of families looking to purchase homes in Kentucky.
She said, “People move to Kentucky because the home prices are affordable compared to other cities. You get a lot more land and space.”
The Bankrate study looked at property taxes, insurance costs and utilities in each state. It found Kentucky is the most affordable in the nation, with an annual average cost totaling to $11,559. The national average spent on those same costs totaled to $18,118 per year.
Pressley says that’s why her priority is sticking to what the family can afford.
She said, ”It’s all about the communication. So whenever I’m looking for a family, I like to ask them questions. You know, ‘How much are you pre-approved for?’ So that we’re shopping within their price range?”
Pam Featherstone, president of Kentucky Realtors also said she’s seen more people looking to move to Kentucky, but there’s an issue with availability.
Featherstone said, “Before we had this influx of business coming in, we already had a housing shortage. Now we have a housing shortage that’s been multiplied. So, we have a tremendous amount of building going on, but it’s not enough to keep up with the demand.”
Pressley agreed, saying her biggest issue is finding enough homes to meet client demand, however she still recommends homeownership over renting.
Pressley said, “As a homeowner, you’re able to pull that equity out later if you need it to be your own bank. For example, if you’re a homeowner, if you put a 20% down payment on a $100,000 home and then you pay your mortgage for a couple of years, you might have $25,000 equity that you can pull out and use as a line of credit to yourself.”
In Kentucky, the average single family home price is $255,000 according to Bankrate. Nationwide, the median home price jumps above $400,000, which is a historic high. However Pressley and Featherstone say with interest rates expected to drop this year, people should consider buying a home in the coming months.