How A lot Cash Ought to You Price range for Dwelling Upkeep in 2022, Primarily based on Inflation?

Money / financial planning

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If you’re planning any major maintenance or renovation projects in 2022, be prepared to dig a little deeper into your bank account. The cost of maintaining the average single-family home in the US rose 9.3% last year, according to a new survey by Thumbtack, and there is every reason to believe that those costs will continue to rise over the next year.

According to a survey of more than 1,000 Americans in the 40 largest US cities, the higher maintenance costs for households were caused by labor and material shortages, as well as increasing demand for household services. About 30% of respondents said they would spend more than $ 10,000 on home projects in the next 12 months.

According to the Thumbtacks Home Care Price Index, released December 9, the average annual cost of maintaining a single family home is $ 4,886 – an increase of about $ 450 per household compared to 2020. The average cost of maintenance for a Townhouses soared 8.6% to $ 1,922 this year, while the average home maintenance cost increased 10% to $ 682.

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Inflation to blame for rising prices?

Although these increases slowed significantly in the fourth quarter, overall inflation projections point to continued rising costs for almost everything in 2022.

Economists surveyed by the National Association for Business Economics estimate annual inflation will stay above 2% for the next three years amid rising wages and strong demand for goods and services, according to a recent Fox Business report. By the end of 2022, consumer price index inflation is expected to rise by almost 3%.

If this surge creeps into home maintenance, you can expect the average cost of servicing a single family home to climb to over $ 5,000 in 2022. Of course, a lot depends on the types of renovation or maintenance that are sought. In 2021, costs will rise for all but a few maintenance categories, according to Thumbtack. Here are some of the year-over-year cost increases for the current quarter:

• Sprinkler and irrigation repairs: 28.8%.
• Equipment maintenance: 19.7%.
• Sewer cleaning: 19.5%.
• Roof maintenance: 13.4%.
• Tree pruning: 13.4%.
• House cleaning: 13.3%.

Only three categories saw costs fall this quarter: chimney and chimney cleaning by 5.3%; central air conditioning maintenance (minus 1.8%); and lawn care (minus 0.4%).

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Which US regions will be hardest hit by rising home maintenance costs?

In terms of geographic regions, Thumbtack’s home care price index has seen double-digit maintenance increases in numerous Sunbelt cities this year. Those who see some of the tallest peaks are West Palm Beach, Florida (+ 18.4%); Charlotte, North Carolina (+ 18%); Orlando, Florida (+ 16.6%); Houston, Texas (+ 15.8%); Miami, Florida (+ 14.4%); San Antonio, Texas (+ 13.8%); and San Diego, California (+ 13.7%).

Steep gains were also reported in hot residential markets such as Portland, Oregon (+ 33.9%); Las Vegas, Nevada (+ 17.6%); Seattle, Washington (+ 16.3%); Salt Lake City, Utah (+ 12.8%); New York City, New York (+ 12.1%) and Denver, Colorado (+ 10.5%).

At the other end of the spectrum, some cities have seen either declines or minimal increases in maintenance costs this year. This includes Baltimore, which was the only city on the list to see a 1.9% decline. Boston, Philadelphia, San Francisco, and Washington, DC all reported increases of 3% or less.

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Regardless of where you live, experts recommend spending enough money on upkeep and renovations each year to keep your home in good condition.

“People in different cities will make different decisions, but what is clear is that while you can put off buying a new couch – if you have moved to a warmer climate, you can put the strain on servicing or repairing your air conditioning, sprinklers, and more Areas, “said David Steckel, home expert at Thumbtack, in a press release. “Proactive home care saves homeowners thousands of dollars in repairs and helps arrange replacement appointments.”

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About the author

Vance Cariaga is a London based writer, editor and journalist who previously worked for Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work has also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal, and Business North Carolina Magazine. He holds a BA in English from Appalachian State University and studied journalism from the University of South Carolina. His coverage has been recognized by the North Carolina Press Association, the Green Eyeshade Awards, and AlterNet. In addition to journalism, he has worked in banking, accounting and restaurant management. Vance’s short story “Saint Christopher” is from North Carolina and also writes fiction. She took second place in the 2019 Writer’s Digest Short Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published in 2019 by Ad Hoc Fiction. His debut novel, Voodoo Hideaway, was published by Atmosphere Press in 2021.