While the majority of U.S. homeowners express high satisfaction with their property purchases this year, a growing number are grappling with the financial volatility of unexpected repairs and shrinking confidence in their ability to handle extreme weather.
According to the 2026 Housepower Guide released by Hippo, a California-based home insurance company, homeowner satisfaction has reached its highest level in three years. However, this optimism is tempered by a financial reality: Maintaining a home is becoming an increasingly complex balancing act of budgeting for aging infrastructure and preparing for escalating climate risks.
The data reveals an area of concern regarding borrower liquidity and long-term property value. Although the average cost of unplanned repairs dropped to $3,682 in 2025, which is down from previous years, repair predictability remains elusive for homeowners.
In 2025, 34% of homeowners exceeded their maintenance budgets, highlighting a persistent gap between expected costs and actual expenses. In addition, only 8% of homeowners managed to avoid surprise costs entirely.
A significant factor driving these costs is the aging U.S. housing stock. The report notes that 52% of surveyed homeowners acquired their homes within the past decade, meaning many recent borrowers are now managing properties that require significant upkeep.
Data shows a direct correlation between home age and financial stress, with owners of homes built between 1960 and 1989 reporting significantly higher rates of unexpected repairs impacting their financial stability.
The nature of these repairs is also shifting. Between 2024 and 2025, homeowner concerns moved from external threats, like roof damage, to internal system failures. In 2025, plumbing issues and appliance breakdowns became top concerns, with critical system issues — including water heaters and heating, ventilation and air conditioning systems — affecting nearly a quarter of all homeowners.
Perhaps the most stark finding for 2026 is the rapid decline in confidence regarding the climate. The percentage of homeowners who feel “very prepared” for extreme weather plummeted from 51% in 2024 to just 32% in 2025.
The report also offers insight into what today’s borrowers wish they had known before buying. Half of U.S. homeowners now advise new buyers to research financing options and mortgage management more thoroughly. Additionally, 35% emphasize the importance of budgeting specifically for proactive maintenance.
As costs rise, many homeowners are turning to do-it-yourself solutions to preserve cash. More than 80% of homeowners plan to undertake DIY projects in 2026. However, with 58% of DIYers previously reporting that they blew their budgets due to mistakes, this trend may introduce new risks rather than mitigating old ones.
