Annual Home Maintenance Costs Reach All Time High of $6,548 Across the Country.
Meanwhile, inflation rates steady to slowest quarter-over-quarter increase — 0.58% — after 3 years of rapid growth.
Each quarter we release new data from our Home Care Price Index*, a snapshot leveraging insights from more than one million essential home maintenance projects to estimate the annual cost of maintaining your home in cities across the country.
This past quarter, the average annual cost to maintain a single-family home increased 6.54% year-over-year (from $6,146 in Q3’22 to $6,548 in Q3’23). Yet there’s been a significant slowdown quarter-over-quarter, with costs up only 0.58% from Q2’23 to Q3’23. And although the rise in costs has slowed both annually and quarterly, prices remain at an all time high since we started tracking in 2020.
Year-over-year the average annual costs to maintain a townhome and condo are also up ($2,250 for townhomes and $756 for condos), increasing at an annualized rate of 6.36% and 3.92% respectively. These costs remained more or less stagnant compared to last quarter, with townhome maintenance up 1.04% and condo maintenance down 0.04% respectively.
HVAC Project Costs Spike the Most Ahead of Cooler Months.
Our Home Care Price Index takes into account various maintenance projects* homeowners need to tackle each year — including HVAC maintenance, gutter cleaning, appliance repairs/maintenance, and more — to keep homes running smoothly and prevent costly, emergency repairs. This quarter, we’ve seen home maintenance prices remain elevated across the board, with 12 out of the 17 home maintenance categories increasing in cost compared to the same time last year.
When looking at specific home categories, Heating System Repair or Maintenance has seen the biggest price spike over the past year (up 34% YoY) followed by Central Air Conditioning Repair and Maintenance (up 24% YoY), as well as Roof Repair and Maintenance (up 20% YoY). These increases are particularly prevalent due to the aging housing stock — which requires additional maintenance and upkeep.
Local Markets At Odds — Some See Cooling in Prices While Others Continue to Rise.
In Q3 ’23, we saw the cost of home care rise from coast to coast, with 24 of the top 40 metropolitan areas seeing an increase compared to the same time last year. However, we have started to see signs of cooling, with 20 of the top 40 metro areas seeing a decrease in home maintenance costs and 15 of the top 40 seeing only a single digit increase from the previous quarter.
This quarter, cities that saw increases in home care costs included San Antonio up 37%, Las Vegas up 36%, and St. Louis and Houston both up 35% year-over-year respectively. Close behind, Chicago, Pittsburgh, and Columbus all saw prices increase 26% year-over-year.
Portland, Oregon saw the most drastic decrease in the annual cost of home care, down 24% year-over-year ($6,515 annually), followed by Indianapolis (down 19%), Tampa (down 18%), as well as Kansas City and San Diego (down 9% respectively). Los Angeles, New York City, and West Palm Beach all saw an 8% decrease year-over-year as well.
While we’re seeing prices continue to increase, some cities are a bit more cost-effective than others. Below are the most and least affordable cities for home care in Q3 2023, looking at average cost per city:
Aging Housing Stock Will Continue to Impact Demand for Maintenance and Repairs.
While the slowing rate of home maintenance cost increases are good news for homeowners, there is some concern that the cooling may be short-lived. Despite aggressive increases in interest rates by the Federal Reserve over the last year plus, the US economy remains strong (even surprisingly so, with the September jobs report showing job growth at almost 2X the level expected by market analysts). And with 30-year mortgage rates pushing into 8% territory, there is little incentive for existing homeowners to move, and more incentive to extend the longevity of their current homes through maintenance and renovations.
Additionally, long term pressures of an aging housing stock will continue to drive sustained demand as home builders struggle to keep up with the permitting and construction time needed to build new, flip, or remodel older homes. In fact, about 50% of single-family homes in the US were built before 1980. Making the need for proactive home maintenance more crucial than ever.
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 free personalized guidance for your home.
*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 consumer. The cost is an unweighted index of home maintenance projects on a quarterly basis using a moving average.
