Hippo Housepower Report: Home Protection Priorities in 2025
At Hippo, we help homeowners across the U.S. protect their most significant financial asset—their homes. Our annual Housepower Report surveyed over 2,000 U.S. homeowners to uncover valuable insights, from the repairs impacting their financial well-being to their top home projects for the coming year.
In 2024, many homeowners benefited from building home equity as homeownership remains a leading accumulator of wealth. However, this year also brought financial challenges for homeowners when protecting their investment, including historically high mortgage rates, rising insurance premiums, and unexpected maintenance costs.
Looking ahead, homeowners are taking on new strategies to protect their homes and finances. Nearly half (47%) are creating an emergency plan for 2025, 42% are reviewing their home insurance, and 30% are exploring additional coverage. Preventative DIY projects and energy efficiency improvements are also high on their lists.
After a costly 2024, homeowners can take control by committing to home improvement and protection in the year ahead. In fact, over 90% of homeowners say they already have home projects planned for 2025, reflecting a clear path towards creating enduring properties for the future.
Key takeaways
- Our annual Housepower Report survey found 46% of homeowners spent over $5,000 out-of-pocket on unexpected home repairs in 2024, a significant increase from 36% in 2023. This highlights the rising financial burden of unforeseen home maintenance costs.
- Nearly a quarter (24%) of homeowners spent less than $1,000 for all seasonal home maintenance tasks in 2024, the most common amount spent by respondents.
- A significant 73% of homeowners expressed regret about their home purchase in 2024, primarily due to compromises on features, higher-than-expected mortgage rates, and unexpected maintenance issues. This is up from 63% in 2023, indicating a troubling year-over-year trend.
- Unexpected maintenance issues affected 83% of homeowners in 2024 compared to 46% in 2023. Water damage, roof damage, and window or door issues were the most common problem areas.
- DIY surges in response to rising costs, with 55% of homeowners planning to take on more DIY projects in 2025.
- Driven by environmental concerns and cost-saving opportunities, 59% of homeowners will prioritize energy efficiency and sustainability in 2025.
- Nearly half (46%) of homeowners reported home insurance and protection plans as a top priority, highlighting the importance of safeguarding their home investment against unexpected events.
Balancing home protection spending amid rising repair costs
Our data reveals a significant 28% increase in unexpected home repair costs since our last report. That looks like 46% of homeowners spending over $5,000 out-of-pocket in 2024, compared to only 36% in 2023.
Despite this trend, nearly a quarter of homeowners kept seasonal maintenance spending below $1,000 in 2024. While this approach can appear cost-effective, it's important to consider the potential long-term benefits of greater investments in home maintenance.
Experts recommend budgeting at least 1% of a home's value for annual preventative maintenance. For example, a home valued at the U.S. average of $420,400 would require a maintenance budget of approximately $4,204.
By allocating more funds for proactive care, homeowners could help reduce the need for costly unexpected repairs and increase their home's overall value.
Our survey also found the benefits of maintenance go beyond financial gains. Many homeowners reported routine upkeep was also inspired by personal factors. This includes the 26% of respondents who shared completing maintenance tasks gave them a sense of pride and motivation.
Budgetary considerations, though, make up the top three motivators behind proactive home maintenance:
- 64% prioritized maintenance to preserve their home’s overall condition.
- 46% completed tasks to protect or enhance their return on investment (ROI).
- 45% sought to prevent costly damages.
By staying proactive and setting realistic maintenance and budget goals, homeowners can balance home protection with the long-term rewards of a well-maintained space.
Lessons from 2024: Navigating unexpected home repairs
In 2024, 83% of homeowners faced unexpected home repairs. That's almost double the 46% reported in our 2023 Housepower Report. These surprises significantly impacted financial stability, with 47% of respondents indicating that unexpected repairs strained their budgets.
Water damage, roof damage, and window or door issues were the main culprits for homeowners in 2024. This data underscores the importance of proactive and seasonal maintenance, especially to prepare for seasons with more extreme temperature shifts.
When asked which season consumed the majority of their maintenance budget, 30% of homeowners reported winter, and 30% reported summer. Spring and fall trail behind at 25% and 8%, respectively.
These seasons are often associated with the most significant strain on homes. For example, winter's extreme cold can damage roofs with ice or snow. Summer's heat can force appliances, like HVAC units, to work harder to cool the home. These seasons are the most critical time for homeowners to invest in maintenance to prevent unexpected surprises.
We also found spending habits varied by location. On the West Coast, nearly half (49%) of homeowners reported spending the bulk of their seasonal maintenance budget in the winter. This is possibly due to the need for weatherproofing and protection from ice or snow. Similarly, 38% of homeowners in the Mid-Atlantic region (i.e., New York, Pennsylvania, and New Jersey) said winter was their most costly season for maintenance.
Summer maintenance costs, on the other hand, dominated home budgets in warmer climates. For instance, 39% of homeowners in Southern states like Tennessee, Alabama, Kentucky, Mississippi, Texas, Oklahoma, Arkansas, and Louisiana cited summer as their most expensive maintenance season.
These regional differences highlight how geography and climate can influence seasonal maintenance needs and the importance of creating a maintenance plan designed for your home’s unique needs.
Remorse re-surges in 2024: Top homeowner regrets revealed
Our report revealed a significant increase in homeowner regrets compared to previous years. In 2024, an overwhelming 73% of respondents reported at least one regret regarding their home purchase.
This follows a notable dip in 2023, when 63% reported regrets, down from a high of 78% in 2022. The data suggests that while homeowner regret temporarily eased in 2023, the upward trend in 2024 signals a renewed struggle for U.S. homeowners to feel satisfied with their purchases.
Factors like rising home prices, limited housing inventory, and higher mortgage rates may have contributed to a more challenging housing market in 2024.
All of these factors could explain the increase in homeowner regrets—especially if homeowners found themselves stretching budgets, making compromises, or rushing homebuying decisions due to strong competition for available homes.
Our research revealed three main regrets fueling this trend.
Regret #1: Compromising on desired home features
The most common remorse among homeowners? Letting go of the features they really wanted. Nearly half (42%) of homeowners identified this as a regret, increasing its prevalence by 22 percentage points from the 2023 Housepower Report—where only 20% cited it as a top concern.
Regret #2: Shouldering oppressive mortgage rates
Another major regret, reported by 34% of respondents, involved taking on a mortgage rate higher than they could comfortably afford. With fluctuating interest rates and market competition driving home decisions, some respondents were financially stretched thin.
Regret #3: Battling unexpected issues and repairs
The third most-popular regret reported by homeowners included facing more unexpected issues than they anticipated. For 29% of homeowners, the added stress of navigating repairs or renovations could sour the homeownership experience, transforming a once-exciting milestone into an ongoing challenge.
These regrets have a ripple effect. The compromises homeowners make may be driving their future plans, with 59% of homeowners saying they plan to move in 2025.
This could suggest that many individuals are seeking homes with features that align with their true desires—even if it means packing up and starting the search anew.
Motivations for preventative maintenance by age groups
The motivations for preventative maintenance vary significantly based on a homeowner's age. These differences show priorities that are key to understanding the 2024 homeownership landscape.
Younger homeowners: Focused on protection and prevention
While prevention is an important factor across age groups, homeowners between 18-29 years old cite maintaining the overall condition of their homes as their top reason for performing seasonal maintenance (53%). This is closely followed by preventing unexpected repairs and costly damage (34%).
These findings reveal that homeowners in this age group could prioritize immediate concerns over long-term financial goals.
Energy efficiency (16%) and insurance-related concerns (12%) are less significant motivators for younger groups. This may suggest that saving costs, like on utilities and insurance, is not a top priority yet.
Key takeaway: Younger homeowners are navigating a complex financial landscape. They're balancing the costs of homeownership, including maintenance and repairs, with other significant financial obligations. This could include managing student loan debt while saving for other future goals.
Mature homeowners: Prioritizing ROI and long-term stability
More mature homeowners (those between 45 and 60 years of age) are significantly more motivated by the idea of protecting or increasing the value of their home. Over half (57%) of respondents reported this as a key reason they complete proactive maintenance, indicating this group prioritizes proactive maintenance to help secure their long-term financial future.
Moreover, maintaining home equity is often linked to retirement planning or wealth preservation. A robust 65% of this age group report completing maintenance to help maintain their home's overall condition. This showcases their commitment to the stability and longevity of a major asset—their home.
Key takeaway: These contrasting motivations highlight how age or stage of life can influence homeownership. Homeowners between 18-29 years old appear risk-averse, focusing on prevention and manageable costs to stay afloat and a challenging economic environment. Homeowners between 45 and 60 years of age (those with possibly more wealth tied to their homes) use maintenance as a strategic investment to protect their financial future.
Homeownership in 2025: Priorities for the year ahead
Equipped with the lessons of 2024, homeowners are stepping into 2025 with clear goals. Here's what our data revealed as the top priorities for the year ahead.
Energy efficiency and sustainability
More than half (59%) of homeowners indicate they will prioritize energy efficiency and sustainability in 2025. This reflects growing awareness about both their environmental impact and cost-saving opportunities. Upgrades such as LED lighting, smart thermostats, and solar panels can help save money on electric bills and increase property value.
Government incentives and rebates could also help homeowners invest in sustainable home improvements and eco-friendly solutions.
DIY home maintenance
Homeowners are adjusting their strategies for 2025 in response to the surge of unexpected repairs and corresponding expenses. While DIY home maintenance tasks aren’t the highest priority, 55% of homeowners said they are “very likely” to take them on in the new year to help cut costs.
While taking maintenance into their own hands can be a cost-efficient solution, homeowners should exercise caution. Our 2024 DIY Projects and Costly Mistakes report found that 58% of homeowners spent more than anticipated on DIY projects due to errors and misjudgments.
This statistic is a reminder that while DIY efforts can be beneficial, preparation and knowledge are key to avoiding costly home renovation mistakes.
Home insurance and protection plans
For 46% of homeowners, home insurance and protection plans are a priority as they look toward 2025—underscoring the importance of safeguarding a major investment.
Comprehensive home insurance can offer additional financial security against unexpected events like natural disasters or theft. This can help homeowners avoid significant out-of-pocket expenses.
Finding the right coverage is especially important as climate-related challenges become more prominent. Nearly half (42%) of homeowners reported increased flood risks in 2024. Yet, the jury is still out on how much homeowners understand about flood coverage. Alarmingly, 63% reported having flood insurance included in their homeowners insurance policy, which is not part of a standard homeowners policy.
This trend highlights the need for more homeowner education to address gaps and add optional coverage to fit their needs.
To find the right plan, homeowners should also know how much insurance is best for their unique circumstance, how much homeowners insurance costs, and the difference between common types of home insurance.
Homeowner priorities continued
Home upgrades and concern for severe weather events made the Housepower Report’s list two years in a row. While home upgrades held the top spot last year (39% reported it as an important issue in 2023), it dropped down on the list in 2024, with 25% reporting it as a priority.
Meanwhile, the concern for extreme weather preparedness saw a slight increase year over year, with 25% reporting it as a top issue in 2023 and 28% in 2024.
Check out the full Hippo Housepower Guide for a closer look at these remaining two priorities for homeowners in 2025.
A roadmap to empowered homeownership
The 2024 Housepower Report reveals a complex landscape for homeowners. As they navigate the year ahead, homeowners should learn from past mistakes and prioritize proactive strategies to help them take control of their domain.
Homeowners can also step up their upkeep strategy with Hippo’s comprehensive, personalized maintenance checklists available in the Apple App Store and Google Play Store.
Methodology
The 2024 Housepower Report survey was conducted by SurveyMonkey Audience for Hippo Insurance Services. The survey was fielded between November 11, 2024 and November 13, 2024 with results based on over 2,000 completed surveys.
Respondents were screened to be residents of the United States, over 18 years of age, and owners of a single-family home, a condo, or a townhome. Data is unweighted, and the margin of error is approximately +/-2% for the overall sample with a 95% confidence level.
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Hippo’s Annual Housepower Report
2022 Hippo Housepower Report: How Homeowners are Responding to Essential Maintenance During a Shifting Economy
Hippo 2021 Homeownership Report: Modern Misconceptions of Homeownership
Unlocking the American Dream: 2024 Financial Goals Report
Hippo 2023 Homeowner Preparedness Pulse Report
