Home maintenance is important for keeping your home safe and running smoothly. It is an expense that a homeowner will incur until death or when the home is sold.

Unfortunately, home maintenance costs have increased, increasing homeowners’ financial burdens.

One way to tackle maintenance costs is by saving ahead and actively participating in any repairs. This may be difficult for older adults or people with a busy schedule. That is why many homeowners purchase a home warranty to cover appliances and systems breakdowns.

Home warranty companies such as Cinch Home Service provide access to certified professionals and cover the cost of repairing appliances and systems whenever they develop a fault during the contract period — typically one year.

Meanwhile, before purchasing a home warranty, read through the contract to identify the items covered by the policy. You can also ask the company questions such as, Does Cinch home warranty cover plumbing? before signing the agreement.

However, the average cost of general home maintenance varies based on the age of the home, location, and size.

How to calculate home maintenance cost

So far, there is no tool or principle to calculate the exact maintenance cost for your home. But there are tricks recommended by experts to calculate an estimate.

Percentage rule

The percentage rule recommends saving at least one percent of the home value for yearly maintenance. It is not mandatory to save the total sum at once; you can break it down to monthly.

For example, if your home value is $350,000, you should set aside $3,500 for annual maintenance using the percentage rule. This can be done by saving about $292 monthly.

Square foot rule

The square foot rule is more concerned about your home size. For every foot, budget $1 for its maintenance.

That means if your home measures 2,000 square feet, you will need to budget $2,000 for its maintenance. To make it easier, save about $167 per month.

Factors that affect home maintenance cost

Sometimes, budgeting one percent of a home value will not be enough for its maintenance. Depending on certain factors, you may need up to 4 percent or more.

The appropriate budget for home maintenance is influenced by the following:

• Purpose: Luxurious homes require maintenance of certain amenities that cannot be found in a typical home.
• Home age: The age of a building reflects is evident in its components. Old components tend to require more maintenance than new ones.
• Maintenance history: A building with poor maintenance history may have many faulty components requiring major repairs.
• Duration of maintenance: The complexity of maintenance will significantly affect the cost of workmanship.
• Quality of materials used: Quality materials have a longer life span than substandard products. They will need lesser repairs.
• Regulations: DIYs are one way to reduce maintenance costs, but some home repairs must be carried out by registered technicians, even if you have the DIY knowledge.

Home maintenance inflation

Inflation has been a major concern in the US in recent months. In a testimony before the House Committee on Oversight and Accountability Subcommittee on Health Care and Financial Services by Mike Konczal, Director, Macroeconomic Analysis Roosevelt Institute, the increase in housing prices was identified as one of the key contributors to inflation.

The cost of building materials for an average size new single-family home increased by 42 percent from 2018 to 2021. Using the percentage home maintenance principle, the cost of home maintenance will be observed to have been affected by this inflation.

A recent study revealed that single-family homes’ average annual maintenance cost during the first quarter of 2023 was $6,409. This is about a nine percent increase year over year.

The Consumer Price Index from the U.S. Bureau of Labor Statistics indicated that consumer prices across the economy increased by 4.9 percent. This spike in inflation and consumer costs is impacting labor costs.

In fact, the shelter index is the largest factor in the monthly increase in consumer prices, higher than food and energy costs.

Effective Tips to Tackle Home Maintenance Inflation

Desperate times call for desperate measures. Since home maintenance is important for you and your family’s safety and comfort, there are ways to do it while saving money.

DIY

You can use Do-It-Yourself (DIY) methods to fix some home repairs and maintenance. Do thorough research about such projects before doing them. Understand the risk involved and whether it is not in violation of any law in your area.

Use quality materials

Quality materials might be expensive, but they will prove their worth over time. They have longer lifespans and are less likely to require replacement.

Compare prices

Compare material costs from different suppliers. Also, compare the workmanship fee different companies charge to choose the best for your budget and need.