Definition
The sum of payments for mortgages, real estate taxes, fire/hazard/flood insurance, utilities (electricity, gas, water, sewage), fuels (oil, coal, wood, etc.), and (for condominiums) monthly condominium fees.
Why It Matters
Represents the total monthly financial burden of homeownership for owners with a mortgage. It provides a comprehensive picture of the costs associated with owning and maintaining a home.
Specific Relevance for Professionals:
Marketers
A prime target for mortgage refinancing, home insurance, energy efficiency upgrades, and financial planning services. Helps segment homeowners by their total monthly housing expenditures.
Researchers
Fundamental for studying housing affordability for homeowners, the economic burden of homeownership, and the factors influencing housing stability for owners.
Consultants
Crucial for advising real estate developers, mortgage lenders, and financial institutions on market potential and product development based on the total cost of homeownership in specific regions.
Public Policy Workers
Important for informing housing policy, property tax structures, and homeownership support initiatives. It helps understand the total financial commitment of homeownership for policy development.
