Hippo’s Annual Housepower Report
In 2023, interest rates climbed and the national housing supply remained tight, leading homeowners to decide to stay put in their homes for longer and take on DIY projects to lower home maintenance costs. In fact, completing DIY tasks is now the most popular way to stay ahead of managing homeowner responsibilities, according to data from Hippo’s 2023 Housepower Report. We expect this trend to continue as home budgets remain tight in 2024.
“This past year’s low housing inventory and high interest rates have homeowners being cautious about the costs of homeownership, leading them to prioritize budgets and find new ways to prevent small problems from becoming big issues,” said Rick McCathron, Hippo President and CEO. “Looking ahead, nearly one-third of homeowners who participated in our survey said they would advise their peers to prioritize scheduling and budgeting for regular, proactive home maintenance and emergencies in 2024.”
Key Takeaways
1. Prioritize being proactive
- 29% of responding homeowners said they would advise other homeowners to prioritize scheduling and budgeting for regular, proactive home maintenance and emergencies in 2024.
- Recommended action: Develop a yearly maintenance calendar that includes tasks such as HVAC system checks, gutter cleaning, roof inspections, and appliance maintenance. This proactive approach can help prevent potential issues before they become major problems..
2. Help prevent unplanned issues
- 46% of responding homeowners said they had something unexpected go wrong in their home within the past 12 months.
- Recommended action: Familiarize yourself with the various systems in your home, such as plumbing, electrical, and HVAC. Understanding how these systems work can help you detect and address minor issues before they turn into major problems.
3. Budget for home expenses
- Responding homeowners most commonly said they have considered or done DIY home maintenance and repairs (36%), cut back on discretionary spending (32%), and made energy-efficient upgrades (27%) to manage homeownership expenses and responsibilities.
- Recommended action: Learn basic DIY home maintenance skills. Simple tasks like fixing a leaky faucet, changing air filters, or caulking gaps can be done by homeowners with the right tools and information, saving money on professional services.
Home upgrades were most important to responding homeowners this year
Following the heightened activity in the homebuying markets of 2020 and 2021, responding homeowners to Hippo’s 2023 survey weren’t as interested in selling their current property (14% vs. 26%) or buying a second property (13% vs. 26%). Instead, the important issues for homeowners have shifted to home upgrades (39%), home security and safety (32%), home monitoring and other services to help prevent issues (23%). This could be a result of homeowners’ biggest concerns in the past 12 months being: rising inflation rates (38%) and the impact of climate change and/or extreme weather events on their home (25%), compared to results from the 2022 Housepower Report.
Responding homeowners are cutting back on discretionary spending
Homeowners ranked budgeting and financing (39%) as the most difficult aspect of home improvements in the past 12 months, compared to other challenges like tackling unforeseen issues (27%) and deciding between DIY vs. hiring professionals (27%). We found that budgets swayed towards the leaner end. 33% of responding homeowners said they budgeted $1,000 or less for unexpected or planned repairs.
To help manage homeownership expenses and responsibilities, respondents said they cut back on discretionary spending (32%) and made energy-efficient upgrades (27%). In the new year, increasing costs remain top of mind for many homeowners who cite their top worries for 2024 as home repair expenses (38%), home insurance premiums (26%), and protecting their property from damage (26%), according to the 2023 Housepower Report.
Broken appliances and HVAC systems caused responding homeowners the most trouble
Homeownership doesn’t come without its challenges. In the past 12 months, 46% of responding homeowners said they had something unexpected go wrong in their home. Of the most common homeowner challenges, these were the top issues that responding homeowners had come up in their homes:
We asked homeowners if any of the following critical systems broke down in the past 12 months. Here’s what we found:
DIYing is the most popular strategy to manage homeownership responsibilities
To keep up with the expenses and demands of homeownership, responding homeowners most commonly said they’ve considered or used these strategies (respondents could select more than one answer):
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1. Tackling DIY home maintenance and repairs (36%)
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2. Cutting back on discretionary spending (32%)
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3. Making energy-efficient upgrades (27%)
While DIY is a popular option that many homeowners take to cut down on costs, 27% of responding homeowners said they still struggle with deciding when to hire a professional over completing a task on their own.
Responding homeowners still find pride in homeownership
Homeownership takes a lot of effort, but responding homeowners still felt pride in the work they’ve accomplished:
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47% said completing home maintenance and repair tasks increased their sense of pride in homeownership and/or motivated them.
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38% said learning skills to care for their home increased their sense of pride in homeownership and/or motivated them.
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When asked about regret surrounding homeownership, the most selected answer was, “I don’t regret my home purchase.” (37%).
The following were the top three reasons responding homeowners said homeownership was worthwhile in the past 12 months (respondents could select more than one answer):
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1. Control over my living environment (43%)
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2. Personal pride and fulfillment in homeownership (38%)
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3. A stable environment for my family to create lasting memories (37%)
Home repair expenses are the top worry for 2024, but proactive home maintenance is a top priority
For 2024, responding homeowners said the following were the top issues they were more worried about for next year compared to previous years (respondents could select more than one answer).
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1. Home repair expenses (38%)
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2. Home insurance premiums (26%)
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3. Protecting my property from damage (26%)
The top advice from responding homeowners for 2024? Scheduling and budgeting for regular, proactive home maintenance and emergencies (29%).
Feeling the Housepower in 2024
Staying proactive helps keep minor issues from growing into bigger problems. Hippo helps homeowners stay ahead of issues by providing access to preventive home care services and tailored insurance.
The Hippo Home app provides personalized maintenance checklists and DIY guides all year long available in the Apple App Store and Google Play Store. All homeowners can download the Hippo Housepower guide on the Hippo blog.
Methodology for the 2023 Housepower Report
The survey was conducted by SurveyMonkey Audience for Hippo Insurance Services. The survey was fielded between October 6, 2023, and October 7, 2023. The results are based on 2,245 completed surveys. In order to qualify, respondents were screened to be residents of the United States, over 18 years of age, and own a home. Data is unweighted, and the margin of error is approximately +/-2% for the overall sample with a 95% confidence level.
Methodology for the 2022 Housepower Report
This survey was conducted by Kickstand Communications on behalf of Hippo Insurance Services. Fielded between October 22-28, 2022, the results are based on 1,002 respondents. To qualify, respondents were screened to be residents of the United States, 25 to 75 years of age, and currently own a home. Research was conducted at 95% confidence with +/- 3% margin of error.
Disclaimers
YourHaus, Inc. ("Hippo Home") is an affiliate of Hippo Insurance Services. Services (including all repair or maintenance services) provided to customers through affiliated and unaffiliated third-party contractors. Your use of Hippo Home is subject to Hippo Home's terms and conditions and privacy policies. Use of unaffiliated third-party vendors is subject to the terms of service provided by such third party. Hippo Insurance Services is not responsible for your use/non-use of Hippo Home or any service vendor. @ YourHaus, Inc. 2023
Hippo Insurance Services ("Hippo") is a general agent for affiliated and non-affiliated insurance companies. Hippo is licensed as a property casualty insurance agency in all states in which products are offered. Availability and qualification for coverage, terms, rates, and discounts may vary by jurisdiction. We do not in any way imply that the materials on the site or products are available in jurisdictions in which we are not licensed to do business or that we are soliciting business in any such jurisdiction. Coverage under your insurance policy is subject to the terms and conditions of that policy. Coverage and coverage amounts selected are the decision of the buyer.
This guidance and advice is not error-proof and not applicable to every home. You are responsible for determining the proper course of action for your property and neither Hippo nor Hippo Home is responsible for any damages that occur as a result of any advice or guidance.
