The costs of becoming a new homeowner extend far beyond the down payment and monthly mortgage payments. In fact, the typical homebuyer can expect to spend about $30,000 on home maintenance, upgrades and repairs in the coming year, an amount equivalent to 40% of the U.S. median household income ($74,580).
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The costs of becoming a new homeowner extend far beyond the down payment and monthly mortgage payments. In fact, the typical homebuyer can expect to spend about $30,000 on home maintenance, upgrades and repairs in the coming year, an amount equivalent to 40% of the U.S. median household income of $74,580.
This startling statistic comes from home services marketplace Thumbtack, which surveyed 2,000 new homeowners (those who bought a home between 2018 and 2023) about the challenges they face: finding the right home, compromising on necessities, and Maintain new residence.
“First-time homebuyers are overwhelmed – they know what kind of home they want, but they don’t know how to get there,” The report reads. “More than four in five (83%) (new homeowners) were surprised by the complexity of their home after moving in and found that home work was much more time-consuming than they expected.”
When it comes to the home search process, 62% of respondents said they had to increase their budget beyond their initial expectations. Despite spending more, homeowners say they’re getting less—54% say they’ve compromised on features and finishes, and 52% say their homes need major improvements. Another 20% said they “felt forced” into buying a home that ultimately didn’t meet their location and size requirements.
While buying a fixer-upper home is a common option for eager first-time buyers, 95% say they are completely unprepared for the ugly duckling that turns into a swan.
42% of homeowners said they lack sufficient knowledge about home repairs and renovations, 41% cannot afford the cost of the project, and 36% have difficulty finding qualified professionals. While 68% of homeowners decided to postpone smaller projects, 64% said they couldn’t wait to make major repairs, such as asbestos and lead-based paint removal.
“Important projects fail to make progress, and stress and frustration build,” the report says. “One-third said they feel stressed or overwhelmed by what they have to do and feel intimidated by the logistics of managing a home project. , or just prioritize home maintenance over the rest of your to-do list. ”
“Today’s homeowners say procrastination is a huge obstacle to completing projects, with the most common reasons being feeling overwhelmed or unsure of what to do, when to do it or who to hire,” the report adds. “They also cited a variety of pain points The emotional factors that are causing them to put off work range from stress, uncertainty and anxiety to indecision and confusion. More than one in five expressed outright fear.”
While home improvement projects are a big source of stress for new homeowners, 44% said mortgage rate fluctuations and other market factors mean their first home is likely to become their forever home. For those planning to upgrade, it’s still 20 years away.
The survey shows that homeowners are using YouTube (73%), Google (68%) and online consultation (51%) to improve their home maintenance IQ. On an A to F scale, the typical homeowner says they want their knowledge to be at a B level.
“Homeowners’ goal is not to become excellent students in house knowledge,” the report reads. “The truth is, they don’t want to be their own experts. They are more than happy to outsource their home maintenance needs. They just need to know enough to maintain Families function and avoid getting into trouble.”
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