What's Happening?
Hippo, a technology-enabled insurance group, has released its fourth annual Housepower Report, which reveals significant financial strain on homeowners due to rising home-related costs. The report, based
on a survey conducted by Centiment, indicates that 76% of homeowners experienced financial instability in 2025 due to home-related issues. Gen Z homeowners were particularly affected, with 85% reporting financial instability, compared to 67% of Baby Boomers. The report highlights that unexpected repairs impacted 33% of homeowners, and 18% did not budget for maintenance at all. Common home problems in 2025 included plumbing issues, appliance breakdowns, and critical system failures. The survey also found that many homeowners are purchasing older homes, which increases maintenance demands. Despite these challenges, homebuyer satisfaction has increased, with fewer homeowners expressing regret over their purchases compared to previous years.
Why It's Important?
The findings of the Housepower Report underscore the growing financial pressures faced by U.S. homeowners, particularly as housing costs continue to rise. This financial strain could have broader implications for the housing market and the economy, as homeowners may need to divert funds from other areas to cover unexpected home-related expenses. The report also highlights the need for better preparedness for extreme weather events, as only 32% of homeowners feel confident in their ability to handle such situations. This lack of preparedness could lead to increased insurance claims and higher premiums, further straining household budgets. Additionally, the trend of purchasing older homes suggests a potential increase in demand for home maintenance services and products, which could impact related industries.
What's Next?
Looking ahead, homeowners are prioritizing rising maintenance and repair costs, home upgrades, and insurance protection plans. Many plan to take on more DIY maintenance tasks to save money, although confidence in completing these tasks remains low. The report suggests that homeowners will increasingly rely on technology, such as AI, to research and understand insurance options. This shift could lead to changes in how insurance companies market and deliver their products. Additionally, as homeowners continue to face financial pressures, there may be increased advocacy for policies that address housing affordability and support for home maintenance and repair initiatives.
