There are many benefits to trading up to a home with more square footage, especially for growing families—but with more house comes more cost, and, as a recent analysis by Zillow reveals, it can vary by location.
Trade-up homeowners can expect to spend an average $447 more each month if they move from a home with two bedrooms to one with three, according to Zillow’s Cost of Moving Up Analysis, or 50 percent more tacked on to a monthly mortgage payment.
In several markets, trading up from two bedrooms to three adds less expense to a monthly mortgage payment than the average—in some cases, a lot less. In Cleveland, Ohio, trading up from two bedrooms to three will cost a negligible $74 more each month, while trading up in Philadelphia, Pa., will cost only $77 more. Trade-up homeowners in Indianapolis, Ind., Baltimore, Md., and Kansas City, Mo., will pay below-average costs, as well: $103, $105, and $112, respectively.
Trading up from two bedrooms to three in high-priced markets, however, comes at a steeper cost: above average at $2,224 more each month in San Jose, Calif.; $1,660 more in San Francisco, Calif.; $1,033 more in Los Angeles-Long Beach-Anaheim, Calif.; $928 more in San Diego, Calif.; and $601 more in Denver, Colo.
The analysis also calculated the cost of trading up from homes with one bedroom to two, three bedrooms to four, two bedrooms and one bathroom to two bathrooms, three bedrooms and one bathroom to two bathrooms, three bedrooms and two bathrooms to three bathrooms, four bedrooms and two bathrooms to three bathrooms, and four bedrooms and three bathrooms to four bathrooms:
“While deciding whether to move is a personal choice, understanding how certain characteristics like size, location, or number of beds and baths, can impact a home’s price can be hugely important when determining if a particular home is the right fit for you and your family,” says Dr. Svenja Gudell, chief economist at Zillow. “Even though many families may be prepared to spend extra for a larger home, just how much more may come as a surprise, especially for those living in coastal markets.”
Knowing what to expect in terms of trade-up costs could give prospective spellers the push they need to put their homes on the market this spring.
For more information, please visit www.zillow.com.
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