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Closing costs when buying a home typically range between 2 and 5 percent of the purchase price. Naturally, when home prices rise, so do closing costs. A recent report by ClosingCorp, a subsidiary of CoreLogic, a property data analytics firm, found that the national average of closing costs was $6,905 in 2021 including transfer taxes. That’s an increase of 13.4 percent over average closing costs in 2020.

D.C. home buyers paid an average of $29,888 in closing costs including transfer taxes in 2021, far higher than the other most costly states such as Delaware ($17,859), New York ($16,849), Maryland ($14,721) and Washington ($13,927), according to the report.

When transfer taxes are excluded, D.C. still topped the list at $6,502, followed by New York ($6,168), Hawaii ($5,879), California ($5,665) and Massachusetts ($4,904).

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While the amount of closing costs paid was higher, the percentage of the purchase price was lower in 2021 at 1.81 percent compared with 1.85 percent in 2020. Closing cost calculations for this report include the lender’s title policy, owner’s title policy, appraisal fees, settlement costs, recording fees, land surveys and transfer taxes.

Closing costs vary by jurisdiction, with Delaware’s average of 5.4 percent the highest percentage of the purchase price by state in 2021. Colorado and Wyoming tied for the lowest percentage of the purchase price charged for closing costs at 0.7 percent. D.C.’s closing costs averaged 3.9 percent of the purchase price, which is among the highest percentages.

High-cost housing markets such as Hawaii and California had lower percentages, at 0.9 percent and 1 percent, respectively. That kept average closing costs lower, at $7,463 in Hawaii and $7,953 in California.

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States with the lowest closing costs including taxes were Missouri ($2,061), Indiana ($2,200), North Dakota ($2,501), Wyoming ($2,589) and Mississippi ($2,756).

When transfer taxes are excluded, the states with the lowest closing costs were Missouri ($2,061), Indiana ($2,200), Nebraska ($2,210), Arkansas ($2,281) and West Virginia ($2,465). Missouri and Indiana don’t impose real estate transfer taxes.