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Hippo's Fourth Annual Housepower Report Insights

On January 15, 2026, Hippo Holdings Inc. released its annual Housepower Report, providing a comprehensive examination of the current state of homeowners in the United States. This year's report unveils the evolving sentiments among homeowners regarding their purchases, the financial strains they experience, and their preparedness for extreme weather events.

Homeowner Satisfaction Rising, Yet Financial Strain Persists

According to the report, homeowners are reporting enhanced satisfaction with their homes, breaking a trend of regret that peaked during the pandemic. In 2021, 63% of respondents expressed regret over their home purchases, a significant decline to 56% in 2026. While many view their homes more positively, concerns regarding ongoing financial obligations have emerged. Rick McCathron, CEO of Hippo, emphasized the need for homeowners to have access to better tools and recommendations for maintaining their properties amidst unpredictable expenses connected to older homes and extreme weather.

The report highlights a shift in priorities among homebuyers. Affordability, along with proximity to work and family, has become paramount in their decision-making. With a growing preference for older homes, homeowners must now navigate increased maintenance challenges associated with aging structures.

Increased Demand for Maintenance and Upkeep

As the average age of U.S. homes reaches 40 years, homeowners find themselves addressing maintenance issues more frequently. The survey indicated that a significant percentage of purchased homes were built before 1990, compounding the need for regular upkeep. Alarmingly, 57% of respondents admitted they didn't prioritize home maintenance sufficiently in the last year. Commonly overlooked tasks include HVAC services, plumbing checks, and gutter cleaning—critical tasks that can prevent substantial damage if neglected.

Additionally, homeowners reported a shift in common issues, with plumbing (34%), appliance breakdowns (32%), and system failures (23%) becoming increasingly prevalent. Motivated by financial constraints rather than preference, many homeowners are opting for DIY maintenance to save costs, even though only a third feel confident in handling basic tasks.

Budget Pressures Leading to Financial Instability

The growing costs of homeownership are taking a toll on household budgets. A staggering 76% of homeowners reported that one or more home-related factors affected their financial stability. Among them, Gen Z reported the highest levels of financial strain, with 85% citing homeownership-related pressures. Maintenance budgets are tightening significantly, with 58% allocating between $500 and $4,500 annually, a notable increase compared to previous years.

As more homeowners tackle maintenance tasks independently, a concerning number (18%) reported not budgeting for maintenance at all, nearly double last year's figures. This increase reflects broader cost-of-living pressures impacting homeowners’ financial decisions, ultimately leading to workarounds that may compromise home upkeep.

Challenges of Preparing for Extreme Weather

Homeowners' preparedness for extreme weather is a growing concern. With heating events, strong winds, and cold weather becoming increasingly frequent, confidence in addressing these risks has dropped to just 32% this year. There is a notable difference in preparedness among demographic groups: Gen Z homeowners show an eagerness to adopt additional insurance coverage, with 76% purchasing riders like flood insurance and replacement cost coverage.

Looking Ahead: Homeowners' Priorities for 2026

As homeowners look to the future, their primary concerns revolve around rising maintenance costs, upgrade needs, and insurance coverage. Nearly half are considering utilizing AI tools to better understand their insurance options. Moreover, advice from current homeowners for prospective buyers underscores budgeting for maintenance and repairs as critical to financial stability.

For further tools and successful navigation of homeownership, Hippo provides personalized resources through its Home app, enabling homeowners to access maintenance checklists and health insights tailored to their unique situations.

In summary, the 2026 Housepower Report reflects a complex and evolving landscape for homeowners across the nation. While satisfaction with properties is on the rise, the financial challenges posed by maintenance and climate-related risks continue to create significant hurdles. Homeowners are urged to stay informed and proactive in managing both their investments and the associated risks, ensuring a secure and sustainable future.