Chicago New Homes Boast Lower Operating Costs

April 13, 2013

Pay less upkeep on Chicago new homesGreat news for those looking to buy Chicago new homes: the National Association of Home Builders has just released data showing that it’s more affordable than ever to buy new. That is because according to data from the Census Bureau and Department of Housing and Urban Development’s 2011 American Housing Survey, newer homes are reaching the same annual operating costs as older, existing homes, so upkeep is becoming less of an issue.

With a look at the combined prices of utility, maintenance, property tax and insurance costs, the study found that homes built before 1960 have average maintenance costs of $564 a year, while a home built after 2008 only averages $241. That’s an amazing reduction in annual costs from energy-efficient construction! It comes down to operating costs averaging nearly 5 percent of the home’s value for pre-1960 structures, while the average is less than 3 percent if the home was built later than 2008.

While this is somewhat offset by generally higher mortgage costs on a newly-built home, the math works out to operating costs equaling out the difference in mortgage costs between newer and older homes. The cost benefit is just the beginning when it comes to choosing new homes; open floor plans, modern designs and the peace of mind of knowing the building is up to modern safety code also weigh in.

You can learn more about the benefits of new construction at the National Association of Home Builders consumer resource center.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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