Homeowners are increasingly concerned about the rising cost of home maintenance. While a few states have seen a drop in inflation, the majority still experience price increases on essential items like building materials and labor.
Inflation and prices are causing homeowners to delay projects or skip them entirely. This can leave critical issues unchecked and result in higher costs later on. Things to focus on include your hvac maintenance, electrical, and plumbing can reduce the chances of these home repair services.
- Materials
Even the most careful homeowners can experience wear and tear on their homes. In a worst-case scenario, this can lead to costly repairs in the future.
Many homeowners are finding themselves short on savings for unexpected home maintenance expenses. In fact, a majority of Americans (54%) say they couldn’t afford a $3,000 emergency repair without going into debt.
The average annual cost to maintain a single-family home rose by about nine percent this year, according to a new survey from Thumbtack. The increase is a result of labor and materials shortages and inflation, which are boosting prices for supplies like paint and plastics.
However, the costs to take care of your home are expected to continue climbing throughout 2023.
- Labor
Owning a property comes with some responsibilities, and one of those responsibilities is maintaining the building. While some property owners may think that delaying maintenance items until prices go down is a viable strategy, this will not be effective in the long run.
With a labor shortage driving prices higher for skilled workers, it is critical to make sure that all maintenance items are addressed. This is especially true of structural maintenance items, which can be more expensive than cosmetic maintenance items.
As an example, a repainting project that calls for high-quality paint with a lifespan of 7 to 10 years will cost more than a lower-quality paint that only lasts 5 to 7. Inflating your budget to account for these higher costs is one way to prepare for rising home maintenance expenses.
- Regulations
While home improvement activities may be influenced by local and state real estate laws, the regulations that impact these renovations are often beyond the control of property owners. For example, a law might require the installation of smoke detectors, which will need to be replaced over time.
In some cities, property maintenance costs rose substantially. This was particularly true in Florida, where weather-related repairs are common. However, even in these cities, year over year maintenance costs have stabilized or decreased in Q1.
While a slim majority of homeowners say they do their best to stay on top of repair and maintenance tasks, external pressures can still affect their ability to manage home maintenance. For instance, 47% of recent homeowners report that inflation and price increases have kept them from managing their home care and maintenance projects.
- Insurance
When you own a property, it costs more than just the mortgage payment. You also have to pay for property taxes, homeowners insurance, and maintenance. And these maintenance costs are on the rise.
A recent survey by a home insurance company found that two in five homeowners say inflation and price increases have kept them from completing planned home maintenance or improvement projects. A similar number say they are concerned that a small issue in their home could create lasting damage, and they are putting off repairs to avoid those costs.
To manage rising home maintenance costs, consider cutting unnecessary expenses like buying coffee every day or eating out and transferring those funds to a savings account for your next project. It may help to find a service that tracks your spending and can alert you to any changes. A home warranty plan can be just as important to cover repair costs like appliances breaking down and save you a ton of money.
- Time
Whether it’s for new projects or repairs, home maintenance is becoming more expensive. This is not because of any specific material or project, but rather because of the overall price hikes caused by inflation.
Property managers and homeowners should be aware of these changes and plan accordingly. Delaying critical maintenance items can lead to more damage and higher repair costs in the future.
According to a survey by insurance company Hippo, 54% of homeowners say they are less comfortable with buying big home improvement and maintenance projects because of prices and inflation. And 43% say that supply chain issues and shortages are keeping them from managing their homes regularly. These factors are creating a vicious cycle that is expected to continue well into the future.
