25 December 2023
Homeowners are facing financial challenges as the cost of maintenance and insurance rates continue to rise
As home prices and mortgage rates remain high in the US, homeowners are finding it increasingly difficult to budget for the additional costs of homeownership. One of the biggest challenges is the cost of maintenance and repairs, which can quickly add up. Additionally, skyrocketing insurance rates due to weather-related damage are putting further strain on homeowners’ wallets. A recent survey reveals the extent of these hidden costs and the impact they have on homeowners’ financial well-being.
The High Cost of Upkeep and Repairs
A survey conducted by OnePoll and Honey Homes found that the average US homeowner spends $9,924 annually on upkeep, repairs, and maintenance. This financial burden is often overlooked when budgeting for homeownership. The high real estate prices and interest rates make it challenging for homeowners to purchase a new home, leading them to focus on improving or maintaining their current residence. However, the cost of these improvements can be significant.
Unexpected Repair Expenses
While setting aside $10,000 a year might cover the average cost of maintenance, some repairs can far exceed this amount. For example, a new air conditioning unit can cost at least $4,000, while a two-story house may require double that amount. Replacing a roof can set homeowners back a minimum of $6,000, and fixing an uneven or cracked foundation can range from $2,000 to $8,000. Even replacing an old garage door can add another $1,000 to the total expenses.
Skyrocketing Insurance Rates
Homeowners also face the challenge of rising insurance rates, particularly in areas prone to weather-related damage. In Florida, home insurance rates have quadrupled since 2019 due to the increasing frequency and severity of hurricanes and tornados. Some insurance companies have even stopped offering new policies in areas with more extreme weather. Texas residents, who are frequently hit by hurricanes, tornados, and hail storms, are also experiencing an “insurance crisis.”
DIY vs. Professional Maintenance
To offset the cost of maintenance and repairs, some homeowners choose to do the work themselves. However, even if they have the skills to complete the projects, there are still additional costs to consider. Homeowners need to invest in tools, supplies, and their own time, which can add up over time. Moreover, some repairs may require professional expertise, further increasing the financial burden.
Homeownership comes with hidden costs that can significantly impact homeowners’ financial stability. The cost of maintenance and repairs, coupled with skyrocketing insurance rates, pose significant challenges for homeowners across the country. It is crucial for prospective homeowners to consider these hidden costs when budgeting for homeownership and to have a contingency plan in place. As the housing market continues to evolve, homeowners must be prepared for the financial responsibilities that come with owning a home.