How much should I budget for maintenance and repairs each year?

A common guideline is to budget one to two percent of your home's value each year for maintenance and repairs, though actual costs vary widely depending on the age and condition of the home, the systems and materials, and how much you do yourself. Newer homes with warranties typically cost less in the early years, while older homes may need more frequent updates to HVAC, roofing, water heaters, and appliances. In Arizona, you should also plan for pool maintenance if you have one, desert landscaping upkeep, and higher air conditioning costs and wear during summer. Setting aside funds monthly helps you handle both routine upkeep and unexpected repairs without financial stress. Tracking your spending over time will give you a better sense of your particular home's needs.