Annual Cost of Home Maintenance Spikes Across the Country.
Each quarter we release new data from our Home Care Price Index, which provides insight into the annual cost of homeownership across the country based on data from more than one million projects. This quarter, inflation accelerated after briefly slowing in Q1 — driving up the average cost of essential home maintenance for a single family home by an annual rate of 9.2%.
Single Family Homes Hit Hardest
This past quarter, inflation has hit single family homeowners harder than those of townhomes and condominiums. In fact, the pace of inflation in our Home Care Price Index has increased 2.6% on a quarterly basis, up 0.9% from Q1 and has returned to about the same pace seen at the end of 2021.
Our Home Care Price Index takes into account various projects homeowners need to tackle each year — including HVAC maintenance, gutter cleaning, roof maintenance, and more — to prevent costly repairs and avoid unnecessary emergencies. Currently, the average cost to maintain a single family home has increased $432 compared to the same time last year and $131 compared to last quarter — now costing an average of $5,125 nationwide.
Meanwhile, the average cost to maintain a townhome and condo has increased by an annualized rate of 6.6% and 3.7% respectively in the last quarter — slowing compared to Q1. Not including HOA fees, the total annual cost to maintain a townhome is now $1,960 ($121 more compared to the same time last year) and $722 for a condo or apartment (up just $25 compared to the same time last year).
Prices On The Rise Across Home Categories
This quarter, 94% of home care projects saw an increase in cost, showing broad-based inflation through various types of home projects. So what’s driving up the cost of home services? Upward pressure on costs of materials, energy and other services for skilled professionals continue to impact the prices they charge for their services, especially recent rises in the price of gas.
As a result, homeowners should be prepared to be flexible on dates and timelines for projects — as many home pros are grouping their upcoming projects by location to minimize gas costs and to make the most of their time. The most recent Consumer Price Index in June found that prices had increased an annual rate of 9.1%, which is in line with the rate of inflation among prices independent Thumbtack pros are charging for their services.
Miami and San Diego Feel Strongest Inflation
Most regions continue to experience significant inflation in the home services sector. In Q2, 33 of the top 40 metropolitan areas saw the cost of home care rise. And over half (22) of metropolitan areas saw double-digit increases in the average cost of home maintenance.
Inflation has hit Miami-Ft. Lauderdale and San Diego the hardest (at +21.3% and +21.1%, respectively) followed by New York (+20.2%), Salt Lake City (+20.1%), and West Palm Beach (+19.2%) — with significant double digit increases in the average cost of home maintenance.
Los Angeles saw a drastic double-digit drop in home maintenance prices (-20.7%) compared to the same time last year. Philadelphia (-6.2%), Chicago (-2.8%), Columbus (-1.8%), Dallas-Ft. Worth (-1.8%), Milwaukee (-1.8%) and San Francisco (-1%) all saw slight decreases in costs as well.
And as inflation continues to impact homeowners from the east to west coast, these are the most and least affordable cities for home care across the country:
What to Expect in the Coming Months
Despite recent increases in the Federal Funds rate by the Federal Reserve, prices continue to increase throughout the U.S. economy. An ongoing tight labor market will keep upward pressure on the wages that pros will have to pay to grow their business to meet demand. Supply shortages have mostly resolved and energy prices have declined in recent weeks, but inflation has been more broadly based throughout the entire economy in recent months.
A majority (80%) of home professionals and business owners shared with us that when prices for supplies go up, they’re most likely to pass along those incremental costs to customers in order to stay afloat, so homeowners should expect to see price variability in the coming months depending on rising costs and shortages for materials. In the short-term, homeowners should expect prices to continue to rise before plateauing at some point in the next few quarters.
For guidance on what projects to do, when to do them, and who to hire, download the Thumbtack app (available on iOS and Android) and you’ll get a free seasonal home care plan personalized to your exact location and home type.
Methodology: The Home Care Price Index incorporates Thumbtack categories that are deemed essential annual tasks for home maintenance — Appliance Maintenance, Carpet Cleaning, Central Air Conditioning Maintenance, Deck Staining and Sealing, Duct and Vent Cleaning, Fireplace and Chimney Cleaning, Full Service Lawn Care, Gutter Cleaning and Maintenance, Heating System Maintenance, House Cleaning, Pressure Washing, Roof Maintenance, Sprinkler and Irrigation System Maintenance, Tile and Grout Cleaning, Tree Trimming and Removal, Water Heater Maintenance, and Window Cleaning.
Pricing data is based on projects requested on Thumbtack reported directly by the independent service professional or individual customer. The cost is an unweighted index of home maintenance projects on a quarterly basis using a moving average. Outliers were removed if the reported price was greater than three times the standard deviation from the mean within each individual category.
To compile our Q4 2021 Economic Sentiment Survey, we analyzed responses from 886 small businesses, more than half of which identified themselves as home service professionals. The survey was conducted between Dec. 13–23, 2021. We identify the home service industry as a category that includes plumbers, carpenters, painters, electricians, and all trades that help homeowners renovate, repair, and maintain their homes.
