Top Five Budget Cuts Homeowners Are Making

With the rising cost of living, 86% of homeowners say they have compromised on at least one area of their life to prioritize the costs of homeownership, according to a survey conducted by Hippo Insurance.

The areas in homeowners’ lives that suffered the most budget cuts were:

1. Dining out and entertainment: 50%
2. Travel and vacations: 47%
3. Personal and recreational activities: 46%
4. Financial goals and savings: 32%
5. Basic living expenses: 28%

Along with making compromises in certain areas of life, many homeowners are setting responsible financial goals for themselves in 2024. These include homeownership and personal finance goals that will help them succeed in the future. This year, survey respondents reported being most dedicated to:

1. Completing regular maintenance: 45%
2. Reducing monthly expenses: 43%
3. Paying off existing debt: 37%
4. Saving for a major purchase: 36%
5. Increasing their home’s value: 36%
6. Building an emergency fund: 34%
7. Improving their credit score: 27%
8. Exploring tax breaks: 17%

Despite maintenance being a top goal for 45% of homeowners, the majority (44%) of respondents reported having less than $1,000 saved for home maintenance and upgrades. Thirty percent have $1,001-$5,000 saved, 10% have $5,001-$10,000 and 12% have $10,001-$50,000. The remaining three percent have over $50,000 saved. While $1,000 can cover smaller maintenance expenses, many significant repairs and upgrades run higher.

Which home maintenance tasks, repairs and upgrades are homeowners saving for the most? Here are their top answers:

1. Exterior and structural maintenance
2. Plumbing repairs
3. Landscaping and outdoor maintenance
4. Window and door maintenance
5. Design and décor upgrades
6. Energy-efficient upgrades
7. Other critical systems upgrades (e.g. upgrade HVAC)
8. Gas and electrical repairs
9. Upgrades to protect from severe weather
10. Home security and safety upgrades
11. Pest control
12. Smart home technology upgrades
13. Appliance maintenance and repairs

Although homeownership can be pricey, keeping up with maintenance and repairs can save homeowners more money in the long run. Many homeowners’ 2024 financial goals reflect positive budget adjustments and saving habits that could help provide financial flexibility and freedom in the future.