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June 2023 » thefivestar.com 79 J O U R N A L June 2023 significantly. In Charlotte, investors bought 18.4% of homes purchased in Q1, down 14.1 percentage points from 32.5% a year earlier. That's the largest percentage-point drop among the metros in this analysis. Next came Atlanta (-14 ppts), Phoenix (-11.1 ppts), Jack- sonville (-10.7 ppts), and Nashville (-9.3 ppts). Investors gained the most market share in Baltimore, where they bought 21.6% of homes purchased, up from 17% a year earlier (4.6 ppts). Next came Nassau County (4.3 ppts), New York (4 ppts), Providence (3.4 ppts), and Seattle (2.8 ppts). Overall, investors had the highest market share in Miami, where they bought 30% of homes purchased in the first quarter. Rounding out the top five are Cleveland (24%), Anaheim, CA (22.6%) Detroit (22%), and Jacksonville (22%). Investors had the lowest market share in Warren, MI (10.6%), Montgomery County, PA (10.6%), Washington, D.C. (10.6%), Minneapo- lis (11.1%), and Portland, OR (11.5%). Low-priced homes made up increasing share of investor purchases Low-priced homes made up nearly half (48.7%) of investor purchases in Q1, the highest share in two years. Meanwhile, mid- priced homes represented about one-quarter (23.6%) of investor purchases, the lowest share in two years. High-priced homes made up 27.7%, little changed from the prior several quarters. Investors bought 24.9% of all low-priced homes that were purchased in the metros tracked by Redfin in Q1, comparable with the 25.3% record high set a year earlier. Meanwhile, they bought 12.5% of mid-priced homes that were purchased, the lowest share in two years, and 15.3% of high-priced homes. The investors who are still in the market have gravitated toward more affordable prop- erties due to still-high home prices and ele- vated interest rates. A record 41.1% of investor purchases in Q1 were starter homes—homes with 1,400 or fewer square feet—up from 37.2% a year earlier. UNEXPECTED EXPENSES COULD ADD THOUSANDS TO MONTHLY MORTGAGE PAYMENTS P aying your mortgage is not the only expense homeowners face, there are many "hidden" expenses that home- owners encounter, and those expenses add up quickly, no matter how minor they may be. According to a new analysis by Zillow and Thumbtack, utility bills, property taxes, insurance and essential home maintenance can add up to $14,155 a year for the average U.S. homeowner. That's an additional $1,180 per month on top of a typical mortgage payment. And that figure is not static; annual hidden costs range from $9,886 in Las Vegas to $22,791 in San Francisco. First-time home buyers facing affordability challenges in today's market need to understand and budget for these less obvious expenses when calculating how much home they can afford. Specifically, the two companies looked at three unavoidable expenses for single-family homeowners: property taxes, homeowners insurance, and utility payments. These three expenses averaged $7,742 annually, on a national basis. New Yorkers pay the highest property taxes, topping $9,000 per year, while utilities cost the most in Hartford, Connecticut, averaging $4,443 a year. Costs for homeown- ers' insurance vary based on home value, so homeowners in the most affordable metro areas, such as Pittsburgh and Cleveland, have the added benefit of lower insurance bills. Additionally, the analysis also included 17 essential home maintenance projects as cited by Thumbtack, which was derived from a list of millions of home improvement projects completed across the country. These im- provements cost homeowners an average of $6,413 annually. The average cost of upkeep is highest in Los Angeles and Chicago, totaling $8,639 and $7,722 respectively. Meanwhile, homeowners in Las Vegas can expect to pay just $3,467 per year to maintain their homes. "Just like you would visit a mechanic for regular tune-ups to help keep your car in good condition and avoid big bills, your home needs the same routine maintenance to ensure that everything is running smoothly," said David Steckel, Thumbtack's home expert. "Staying on top of annual home maintenance will not only increase the value of your home, but will also help prevent emergency repairs that can wreck a homeowner's budget." "Understanding all the costs that come with homeownership can not only impact a buyer's budget, but the type of home they shop for, too," said Zillow home trends expert Amanda Pendleton. "While a big backyard or a larger home may be appealing, it's important to consider how much main- taining those spaces could cost. Buyers may want to consider affordable alternatives to single-family homes, or spend more upfront on a new-construction home that could need less maintenance in the near term."