The median age of homes in the United States is 44 years, according to the Harvard Joint Center for Housing Studies. The typical house is well past the age when the roof needs repairs, and the furnace needs replacing.
The cost of home maintenance, even after accounting for broader inflation, has jumped. Structural repair costs grew by 14.1% in real terms between 2022 and 2024, according to the Federal Reserve Bank of Philadelphia. Plumbing jumped by 23.6%. This increase reflects the rising cost of individual parts and labor, and the larger size of necessary repairs.
In 2023, homeowners in the U.S. spent an average of $9,030 on replacement projects such as windows, up 59% from 2009 after adjusting for inflation. All this is on top of the rising costs of home insurance, property taxes, and homeowners’ association dues, which are making it prohibitive for many to simply own a home, not to mention buy one.
Financial advisers traditionally suggested setting aside 1% of a home’s value annually for upkeep, but many now argue that isn’t enough. While 1% may cover routine upkeep, 2% to 3% provides a more realistic cushion for expected maintenance, home-improvement projects, and unexpected repairs, particularly for older homes, according to Angie Hicks, co-founder of home-services company Angi. “You’re not just buying an older home, you’re buying a maintenance schedule,” warns Brian Werner, a financial planner in Pittsburgh.