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Moving from a Home with Two Bedrooms to Three Costs $450 Extra a Month

Depending on where you live, a little extra space could increase your monthly mortgage payment by 50 percent, according to Zillow's new Cost of Moving Up Analysis

Apr 4, 2017

SEATTLE, April 4, 2017 /PRNewswire/ -- Upgrading to a larger home comes with a premium in most major metros. Nationally, families can expect to spend $447 extra a month moving to a three-bedroom home from one with two bedrooms, according to Zillow's Cost of Moving Up Analysis[i]. That equates to a 50 percent increase in their monthly mortgage payment.

U.S. families most often seek a three-bedroom home with 2.5 bathrooms. However, more than a third (36 percent) of these buyers go over budget on their home purchase, according to the Zillow Group Consumer Trends Report. To help buyers better prepare this home-shopping season, Zillow identified how much extra move-up buyers could expect to spend on their mortgage if they were to upgrade to a similar home with just one extra bed or bath.

In many coastal markets, moving from a two to a three-bedroom home costs around $500 extra each month. However, in hot markets like San Francisco and San Jose, families can expect to nearly double their monthly mortgage payment, with the premium on moving up exceeding $1,600.

Move-up buyers in the Midwest will see their dollars stretch further. Families in Chicago, Cincinnati and St. Louis can expect to spend just $150 more on their mortgage when upgrading from a two to a three-bedroom home. Cleveland offers the lowest premium out of all the metros analyzed, with move up buyers paying just $74 extra a month to upgrade to a three bedroom.

Bathroom count can also impact a home's price. Nationally, upgrading to a house with the same number of bedrooms, but with one extra bathroom can cost buyers between $386 and $838 extra a month, depending on the home size. Given this premium, adding an extra bathroom to an existing home may be a cost-effective option for some families.  

"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, Zillow chief economist. "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."


Monthly Increase to Mortgage Payment (Dollars)

Metropolitan
Area

1-bed to
2-bed

2-bed to
3-bed

3-bed to
4-bed

2-bed, 1-
bath to
2-bath

3-bed, 1-
bath to
2-bath

3-bed,
2-bath
to 3-
bath

4-bed, 2-
bath to 3-
bath

4-bed,
3-bath to 4-
bath

United States

$ 192

$ 447

$ 614

$ 386

$ 434

$ 549

$ 588

$ 838

Los Angeles-Long Beach-Anaheim, CA

$ 826

$ 1,033

$ 1,253

$ 948

$ 963

$ 1,161

$ 1,247

$ 1,647

Chicago, IL

$ 15

$ 144

$ 253

$ 68

$ 105

$ 125

$ 157

$ 320

Dallas-Fort Worth, TX

$ 44

$ 365

$ 550

$ 308

$ 383

$ 538

$ 588

$ 657

Philadelphia, PA

N/A

$ 77

$ 301

$ 105

$ 119

$ 105

$ 122

$ 312

Houston, TX

$ 47

$ 272

$ 417

$ 217

$ 242

$ 389

$ 455

$ 486

Washington, DC

$ 101

$ 429

$ 647

$ 341

$ 435

$ 425

$ 441

$ 628

Miami-Fort Lauderdale, FL

$ 269

$ 599

$ 760

$ 315

$ 495

$ 742

$ 771

$ 1,281

Atlanta, GA

N/A

$ 187

$ 360

$ 110

$ 195

$ 217

$ 228

$ 442

Boston, MA

$ 368

$ 512

$ 736

$ 497

$ 509

$ 634

$ 698

$ 893

San Francisco, CA

$ 1,210

$ 1,660

$ 2,006

$ 1,460

$ 1,598

$ 1,888

$ 2,034

$ 2,545

Detroit, MI

$ 50

$ 280

$ 392

$ 234

$ 264

$ 320

$ 351

$ 524

Riverside, CA

$ 449

$ 595

$ 663

$ 561

$ 594

$ 688

$ 647

$ 1,053

Phoenix, AZ

$ 176

$ 332

$ 478

$ 231

$ 313

$ 469

$ 468

$ 761

Seattle, WA

$ 395

$ 574

$ 771

$ 585

$ 621

$ 733

$ 778

$ 1,306

Minneapolis-St Paul, MN

$ 85

$ 252

$ 310

$ 206

$ 223

$ 404

$ 443

$ 428

San Diego, CA

$ 798

$ 928

$ 998

$ 771

$ 791

$ 962

$ 988

$ 1,368

St. Louis, MO

$ 23

$ 155

$ 301

$ 121

$ 156

$ 185

$ 231

$ 322

Tampa, FL

$ 206

$ 323

$ 455

$ 230

$ 314

$ 481

$ 516

$ 771

Baltimore, MD

 N/A

$ 105

$ 289

$ 34

$ 116

$ 115

$ 169

$ 247

Denver, CO

$ 329

$ 601

$ 795

$ 654

$ 638

$ 703

$ 786

$ 920

Pittsburgh, PA

$ 95

$ 198

$ 318

$ 185

$ 231

$ 301

$ 380

$ 411

Portland, OR

$ 319

$ 497

$ 648

$ 505

$ 511

$ 595

$ 607

$ 1,049

Charlotte, NC

N/A

$ 224

$ 427

$ 169

$ 190

$ 298

$ 310

$ 574

Sacramento, CA

$ 358

$ 501

$ 700

$ 478

$ 535

$ 752

$ 711

$ 1,106

San Antonio, TX

N/A

$ 198

$ 280

$ 173

$ 208

$ 295

$ 303

$ 430

Orlando, FL

$ 134

$ 287

$ 408

$ 196

$ 311

$ 419

$ 403

$ 580

Cincinnati, OH

$ 48

$ 151

$ 297

$ 172

$ 183

$ 213

$ 238

$ 333

Cleveland, OH

$ 2

$ 74

$ 177

$ 140

$ 115

$ 167

$ 212

$ 332

Kansas City, MO

N/A

$ 112

$ 218

$ 140

$ 116

$ 130

$ 194

$ 288

Las Vegas, NV

$ 162

$ 357

$ 476

$ 291

$ 329

$ 429

$ 473

$ 993

Columbus, OH

$ 51

$ 180

$ 278

$ 177

$ 218

$ 227

$ 259

$ 449

Indianapolis, IN

N/A

$ 103

$ 191

$ 123

$ 109

$ 281

$ 216

$ 398

San Jose, CA

$ 1,791

$ 2,224

$ 2,552

$ 1,853

$ 2,156

$ 2,568

$ 2,704

$ 3,264

Austin, TX

$ 78

$ 372

$ 560

$ 344

$ 444

$ 457

$ 525

$ 681

Zillow

Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. Zillow serves the full lifecycle of owning and living in a home: buying, selling, renting, financing and more. In addition to Zillow.com®, Zillow operates the most popular suite of mobile real estate apps, with more than two dozen apps across all major platforms. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ:Z and ZG) and headquartered in Seattle.

Zillow and Zillow.com are registered trademarks of Zillow, Inc.

[i] Zillow analyzed the cost of upgrading by comparing the mortgage payments of single-family homes. According to data from the U.S. Census Bureau, American Community Survey, the typical household with small children owns their home for seven years. To determine the additional monthly costs associated with upgrading, we compared the mortgage payment of a median-valued home purchased in 2009 with that of a median-valued home with one extra bedroom purchased in 2016. We performed the analysis on the ZIP-code level, then aggregated up to the metropolitan level to control for differences in home values based on location.

 

SOURCE Zillow

For further information: Alexa Fiander, Zillow, press@zillow.com


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