Home Sweet Headache: The Pricey Perils Of Fixing Your Castle

Whether it's a broken water heater or clogged gutters, homeowners should expect the unexpected when it comes to repairs around the house.

According to Hippo's 2023 Homeowner Preparedness Pulse Report, 78% of homeowners experienced unexpected repairs this year — up from 60% in 2022. And 45% said they had damage to their home they could have prevented — that's up from 19% in 2022.

Half of homeowners said they paid more than $3,000 on repairs in the past year, and 50% predict they'll pay more than $3,000 in 2024.

The top three reasons for unexpected repairs were:

• Gradual wear and tear over time 28%)
• Aging home infrastructure (20%)
• Severe weather or climate-related issues (15%)

Spending on home improvements and repairs has dropped since the fourth quarter of 2022 and is expected to decline well into 2024, according to Harvard University's Joint Center for Housing Studies.

Don't Miss:

• Investing in real estate just got a whole lot simpler. This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• Miami’s housing market value has soared over 86% in the last two years and some investors found a simple strategy to profit from it. Here’s how you can do the same in these four cities poised for massive growth.

According to the Hippo report, 74% of homeowners said inflation and price increases hindered their projects compared to 43% in 2022. Additionally, 59% of homeowners said supply chain issues and shortages prevented them from doing planned projects compared to 39% in 2022.

To make sure they have the money to pay for repair and maintenance work, 13% of homeowners are making an annual budget, compared to 5% last year, and 22% set aside money each month or pay period, up from 15% last year.

"Resourcefulness and preparedness are especially important traits since issues like inflation can bring major hurdles," the report states.

Homeowners may not be spending as much, but they're doing what they can to protect their homes, with 62% planning to work on maintenance and repairs to fix something that's broken or needs replacing.

Many homeowners are doing renovation and maintenance projects themselves as they try to manage costs. They're also saving money and budgeting specifically for home improvements, prioritizing essential projects, breaking projects into smaller tasks, prioritizing lower-cost projects and considering their financing options.

More homeowners are concerned about severe weather and climate threats damaging their homes. According to the report, 56% said they experienced damage because of severe weather compared to 31% in 2022.

Real Estate Reimagined: Capitalizing On Unique Opportunities In A Changing Market – Don't miss this virtual event on Thursday, December 21 at 11 AM EST. Our expert panel, featuring the most innovative industry leaders, will guide you through the intricacies of the current real estate market and the unique opportunities available to retail investors. Register here.

Read Next:

• Elon Musk has reportedly bought 6,000 acres of land just outside of Austin. Here’s how to invest in the city’s growth before he floods it with new tech workers.
• Most investors are priced out of buying real estate in the highest-growth markets, but this genius strategy will allow almost anyone to get a piece of the action.
• Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Jeff Bezos gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.