Will Home Repair Costs Decrease In 2024? Frontdoor's COO Tells Us What To Expect
A single home repair can wipe out your entire savings. Home maintenance costs can easily climb into the thousands each year. And, it looks like the cost of home repairs just keeps climbing. According to Thumbtack (via Forbes), the cost of home repairs hit a new high in 2023. From the third quarter of 2022 to the third quarter of 2023, homeowners spent $400 more on home maintenance costs. So, can homeowners expect a decrease in home repair costs in 2024?
House Digest spoke exclusively to Evan Iverson, Chief Operations Officer at Frontdoor Inc., a home warranty service provider, to gain some insight on this topic. Unfortunately, it looks like the cost of home maintenance will just keep getting higher. "The cost of repairs is likely to keep increasing, although at slower rates than the peak of inflation in 2022," said Iverson. At that time, over a period of one year, home maintenance costs almost doubled. "Repairs are likely to keep getting more expensive," said Iverson, but "being proactive can help mitigate that risk."
Here's why home repairs will keep getting more expensive
So, why are the costs of home repairs more expensive than ever? Frontdoor Inc. COO Evan Iverson exclusively told House Digest, "While supply chains have greatly improved from what we saw during the pandemic, other factors will likely keep the cost of repair growing." One of the factors includes "the new government standards on energy efficiency and use of more environmentally friendly refrigerants." The Environmental Protection Agency (EPA) has placed restrictions on hydrofluorocarbons (HFCs). These refrigerants are used in most air conditioning units. Banning HFCs has required the use of more expensive refrigerants, resulting in skyrocketing repair costs for air conditioning systems.
Another factor that has increased the cost of home repairs is "the growing sophistication of appliances with more bells and whistles," said Iverson. New appliances that use smart technology to integrate into the home have become very popular. These appliances require specialized knowledge and typically cost more to repair as a result. Iverson also mentioned that "continuing shortages of skilled labor" have increased home maintenance costs. The shortage of skilled labor has not only made it more expensive to get home improvement repairs done but has also made it difficult to even find contractors to take on home repair projects.
How to reduce home maintenance costs
Evan Iverson exclusively talked to House Digest about steps homeowners can take to reduce home repair spending. "In times of increasing costs, one of the best ways to manage your exposure is to be proactive and properly maintain your home," he said. "There are things consumers can do that will ultimately save them money, such as taking care of your dryer by keeping the vent clean to reduce strain on the heating element. That also helps prevent fires!"
Iverson also said, "For people's heating and air conditioning system, it's critical that the air flows freely so your system doesn't have to work harder. People should change the filters regularly/quarterly, or whenever they look dirty. They should also clean the outside of their AC unit. Use a hose to clean leaves and other debris from the four sides to maintain good airflow." Iverson then recommended, "People should also have a professional check out and service the HVAC system before summer and again before winter." This can prevent air conditioning failures.
"Finally, people should be proactive," Iverson concluded. "If something like an HVAC unit or water heater is nearing the end of its 'life,' consider fixing it before it fails completely. When you discover you have no hot water the day before Thanksgiving, or no AC when it's 100 degrees outside, you'd likely pay anything to get it fixed — so would [others] whose appliances need attention, leading to competition for time with a repair person."