New homeowners plan to spend 40% of income on repairs: Study



home repairs

The cost of becoming a new homeowner goes well beyond down payments and monthly mortgage payments. In fact, the typical homebuyer expects to spend approximately $30,000 on home maintenance, upgrades and repairs in the coming year — an amount that equals 40 percent of the median U.S. household income ($74,580).

Join the movement at Inman Connect Las Vegas, July 30 – Aug. 1! Seize the moment to take charge of the next era in real estate. Through immersive experiences, innovative formats and an unparalleled lineup of speakers, this gathering becomes more than a conference — it becomes a collaborative force shaping the future of our industry. Secure your tickets now!

The cost of becoming a new homeowner goes well beyond down payments and monthly mortgage payments. In fact, the typical homebuyer expects to spend approximately $30,000 on home maintenance, upgrades and repairs in the coming year — an amount that equals 40 percent of the median U.S. household income of $74,580.

That staggering statistic comes from home services marketplace Thumbtack, which surveyed 2,000 new homeowners (i.e. people who bought a home between 2018 and 2023) on the challenge of finding the right home, compromising on must-haves and maintaining a new abode.

“First-time homeowners are overwhelmed — they know what they want in a home, but they don’t know how to get there,” the report read. “More than four out of five (83 percent) [new homeowners] were surprised by the complexity of their homes after moving in and found home projects much more time-consuming than they anticipated.”

When it comes to the home search process, 62 percent of respondents said they had to increase their budget beyond initial expectations. Despite spending more, homeowners said they got less — 54 percent said they compromised on home features and finishes, and 52 percent said their homes needed significant improvements. Another 20 percent said they “felt forced” to purchase a home that ultimately didn’t meet their location and size requirements.

While purchasing a fixer-upper is a common choice for eager first-time buyers, 95 percent reported being wholly unprepared for the process of turning their ugly ducklings into swans.

Forty-two percent of homeowners said they didn’t have enough knowledge about home repairs and renovations, 41 percent couldn’t afford project costs, and 36 percent struggled to find a qualified professional. While 68 percent of homeowners decided to postpone smaller projects, 64 percent said they had major repairs that couldn’t wait, such as asbestos and lead paint removal.

“Unable to make progress on important projects, pressure and frustration build,” the report read. “One-third report feeling stressed or overwhelmed about what to do, becoming daunted by managing the logistics of home projects, or simply prioritizing home maintenance over the rest of their to-do list.”

“Today’s homeowners report procrastination as a huge barrier to getting projects done, most often due to being overwhelmed or uncertain about what to do, when, or who to hire,” it added. “They also cite a distressing variety of emotional factors that make them put off work, from stress, uncertainty, and anxiety to indecision and confusion. More than one-fifth named outright fear.”

Although home improvement projects are a great source of stress for new homeowners, 44 percent said mortgage rate fluctuations and other market factors mean their first home will likely be their forever home. For those who plan to upgrade, it’ll be another 20 years before they do so.

The survey said homeowners are turning to YouTube (73 percent), Google (68 percent) and online consultations (51 percent) to raise home maintenance IQ. On a grading scale of A to F, the typical homeowner said they’d like their knowledge to be at a B-minus.

“It’s not that homeowners are aiming to be A students when it comes to knowledge about their homes,” the report read. “The fact is, they don’t want to be their own experts. They’re more than happy to outsource their home maintenance needs. They just need to know enough to keep their homes running and avoid getting stuck.”

Email Marian McPherson





Source link

About The Author

Scroll to Top