A Baseline Estimate of Average Home Repair Costs per Year
Quick facts:
- A practical 2025 baseline is to budget 1–3% of current home value per year, tuned by age and exposure: newer homes in mild climates ~0.5–1%, typical 10–20‑year homes ~1–2%, and older (20+ years) or harsh‑climate homes ~2–4%; cross‑check with $1–$2 per square foot and keep a separate 0.5–1% emergency reserve (Angi; BLS CPI; BLS ECI; Harvard JCHS LIRA).
- Costs vary with age, climate, region, labor, and materials. Average routine maintenance ($2,458) plus emergency repairs ($2,321) per household anchors a “typical” year near ~1–1.5% of a mid‑priced home, but coastal/AK/HI markets often price 20–40% higher and many South/Midwest metros 10–25% lower; add ~0.5–1% for freeze–thaw, coastal salt air, or wildfire/heat stress, and plan for ongoing 4–5% labor‑cost growth and uneven material trends (cement/asphalt up; copper spiked; steel/lumber eased) (Angi; BLS OEWS; BLS PPI; World Bank).
Home maintenance budgets set before the 2021–2022 cost run‑up likely understate today’s needs. The owners’ maintenance and repair price index rose sharply and remains at mid‑single‑digit year‑over‑year changes through 2024–2025, while house prices continued to appreciate—so any percent‑of‑value rule now implies a higher dollar amount (BLS CPI; FHFA HPI). Overall improvement/maintenance outlays cooled from 2023 peaks but remain historically high in nominal terms (Harvard JCHS LIRA).
During buying and inspections, line items often miss clustered failures (e.g., roof/HVAC/water heater in the same window). Recent spending benchmarks show average routine maintenance of $2,458 and emergency repairs of $2,321 per household (Angi), underscoring the need for a dedicated emergency reserve. Smart, condition‑based tools can cut emergencies and damage severity—e.g., whole‑home leak detection with auto‑shutoff (the EPA notes 10% of homes leak 90+ gallons/day), and connected thermostats that reduce runtime and flag faults (~8% verified HVAC energy savings) (EPA WaterSense; ENERGY STAR). [Read: The Best Homeowners Insurance Companies ]
To help prospective buyers and new homeowners, we synthesized current data on upkeep and repairs from Angi, BLS CPI, BLS ECI, Harvard JCHS LIRA, FHFA HPI, material price indices (BLS PPI), and regional labor data (BLS OEWS). High‑cost coastal metros (e.g., San Francisco/Seattle/Boston) and AK/HI typically quote well above national medians, while many South/Midwest metros are materially lower; climate risks like freeze–thaw, coastal salt, hurricanes, and wildfire exposure increase frequency and cost of service (BLS OEWS; JCHS LIRA).
This article translates those sources into how much to save yearly for routine upkeep, emergencies, and replacements. In practice, most owners land near ~1–2% for typical homes and ~2–4% for older/high‑wear properties in 2025, after adjusting for age, size, climate, regional wages, and material volatility; always cross‑check with $/sqft and keep a 0.5–1% reserve (Angi; BLS CPI).
Start with an initial budget of 1–3% of home value for annual costs. Then follow the table below to determine how much money you should save:
| What to consider | % Increase or decrease in budget |
| Age of home: | Typical 10–20 yrs: plan ~1–2% of value; 20+ yrs or deferred maintenance: ~2–4% and keep a 0.5–1% emergency reserve (clustered replacements 15–25 yrs). Cross‑check with $1–$2/sqft (Angi; Harvard JCHS). |
| High cost of living region: | +0.5%–1% of value; many coastal metros and AK/HI quote 20–40% above national medians; add +0.5%–1% in harsh climates (freeze–thaw, coastal salt, wildfire/heat) (BLS OEWS; Angi). |
| Low cost of living region: | -0.25%–1% of value; many South/Midwest metros run 10–25% below national medians for common repairs (BLS OEWS; BLS OEWS). |
| Skilled labor shortages: | Escalate labor line items ~4–5% YoY and consider +0.25%–0.5% of value in contingency where trades are tight (BLS ECI; AGC). |
How Does the Age of the Home Affect Maintenance Costs?
The U.S. housing stock is historically old: the median owner‑occupied home is about 41 years, and roughly half of homes were built before 1980—vintages that disproportionately drive repair and improvement spending (NAHB; Census ACS; Harvard JCHS). As homes pass 15–25 years, replacement cycles bunch (roof, HVAC, water heater, exterior), pushing annual needs toward the upper end of budgets. Newer code‑built homes can moderate maintenance exposure over time; federal determinations indicate the 2021 IECC yields ~9–10% energy cost savings vs. 2018, with tighter envelopes and better HVAC reducing moisture and runtime stress (DOE Determinations).
For budgeting, start with 1–3% of value and adjust by age: ~0.5–1.25% for newer homes in mild climates, ~1–2% for typical 10–20‑year homes, and ~2–4% for 20+‑year or deferred‑maintenance homes; pair with a $1–$2/sqft check and a 0.5–1% reserve to smooth major replacements (Angi). Material swings can shift project timing—cement/asphalt indices have run firmer while steel/lumber eased from peaks; copper saw record highs in 2024—so consider phasing roofing/paving when petroleum‑linked costs soften and plan ahead for electrical/HVAC parts tied to copper (BLS PPI; World Bank).
Some Areas Are More Expensive Than Others to Have Home Repairs Done
Regional price gaps largely reflect labor rates and local demand. State/metro wages for licensed trades (electricians, plumbers, HVAC) vary widely—top states (HI, AK, MA, CA, DC) pay far above lower‑cost states (MS, AR, AL, OK), with spreads exceeding 70% across some trades; large coastal metros and AK/HI often quote 20–40% above national medians, while many South/Midwest metros are 10–25% below (BLS OEWS; BLS OEWS; BLS OEWS). Service inflation in household maintenance/repair remains elevated into 2025, keeping diagnostic fees and hourly minimums firm even as overall remodeling demand normalizes from 2023 peaks (BLS CPI; JCHS LIRA). Climate exposure compounds costs: add ~0.5–1% in freeze–thaw zones (roofing/drives), coastal salt/wind (corrosion, wind‑rated attachments), and wildfire/heat regions (ember‑resistant roofs, exterior upkeep) (JCHS).
Contractors note that bigger cities create more demand, pushing up costs. “In high‑cost metros with tight trade availability and stringent codes, posted labor rates and permitting requirements lift repair quotes well above national medians, and harsh climate exposures add further premiums.”
How Disappearing Skilled Labor Is Increasing Home Repair Costs
Skilled trades remain constrained despite overall labor‑market easing. Globally, 75% of employers report difficulty filling roles, with the biggest gaps in skilled trades; in the U.S., construction compensation is advancing ~4–5% year over year, and contractors continue to report hiring challenges that raise service rates and extend schedules (ManpowerGroup; BLS ECI; AGC; Federal Reserve Beige Book). A 6% wage increase can lift a labor‑intensive invoice roughly ~3–4% even before longer cycle times or subcontracting premiums are considered. Owners can offset some risk with predictive/remote maintenance: connected thermostats (≈8% HVAC energy savings), whole‑home leak detection with auto‑shutoff, heat pump water heaters with CTA‑2045 telemetry, smart electrical panels, and monitored solar/storage all reduce emergency truck rolls and allow earlier intervention (ENERGY STAR; NEEA; Matter 1.3; NREL).
[ Read: Homeowners Insurance Buyer’s Guide ]
Photo by James Osmund / Gettyimages
