How Much Does it Cost to Maintain a Home?

Buying a home is exciting, but also very expensive. Spending money to buy a home and get everything with financing squared away is only the beginning as continuous spending on upkeep will begin to kick in. The hidden costs of homeownership can sometimes equal the same amount of mortgage payments.

Homeowners should be asking themselves, “How much should I budget for home maintenance and repairs?” According to The Balance, the average homeowner spends about $2,000 on annual home repair costs, but sometimes this can be even higher based on a number of factors. From age of home to general condition, the overall calculation may change in a case-by-case basis. Here are some things to consider when trying to outline a budget for home upkeep.


Homeowners insurance, like policies offered by a local insurance agency in Carmel, Indiana, should cost around $4 per every $1,000 in home value, per year. For example, homeowners insurance on a $200,000 house would cost about $800 per year. Having this kind of insurance will help protect against things like fire damage, flooding, and natural disasters. The estimated amount should be given wiggle room as a rule of thumb, as overall amounts may change.

Square Footage Factor

Homeowners should consider the square footage rule of thumb that encourages them to budget $1 per square foot per year for maintenance and repair. The more square feet you have, the more you’ll end up spending on repairs and maintenance. What’s more, the bigger the space, the bigger project. In this case, you’ll have to add more to your budget to make room for labor and material costs. The price to hire contractors and pay for building materials can vary significantly.

Age of House

The age of a property can play a big role in budgeting. A newer home built within the last 10 years will need little maintenance and costs will remain lower on the scale. Home getting up to 15-20 years old will see costs rise and once a home is up to 30 years old there’s a good chance that major components may need to be replaced. Do you have enough to buy a new roof or replace the pipes? You’ll have to factor that in.


Weather and climate play a huge role in overall repair costs. Depending on the part of the country you’re in these can vary widely. Think of tornadoes in the Midwest, rainy seasons in the northwest, blizzards and ice storms along the east, and damp and hot weather in parts of the south. There are plenty of factors to consider when thinking about weather, which can also inspire certain wildlife and insects to add wear and tear to a home.

Always be sure to factor in additional costs and unknown repairs that may pop up. There’s really only so much planning a homeowner can do when anticipating overall rolling maintenance costs.

About McClain Matthews Insurance

At McClain Matthews, we specialize in providing comprehensive insurance solutions for Indianapolis residents, business owners and beyond. For the last 69 years, we have established relationships within our community and pride ourselves on tailoring coverages as needed by our clients. For more information on how we can serve you, contact our friendly experts today at (317) 298-7500.