Dear Reader,

The cost of owning a home isn’t just the mortgage anymore—it’s the ongoing bill to keep the place standing, safe, and insurable. Today’s inflation report showed prices are still rising at a pace that matters for household budgets, with the Bureau of Labor Statistics noting “household furnishings and operations” up over the past year—exactly where many repair-and-maintain expenses land.

At the same time, insurers are pushing rates higher in riskier regions. In California, the San Francisco Chronicle reports two major carriers raising homeowners rates in 2026 after state approval—another reminder that an older home can become more expensive just to keep covered. What to watch next is whether these carrying costs keep climbing faster than wages.

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For everyday investors and retirees, this is about protecting the biggest physical asset most families will ever own. Roofs, plumbing, HVAC, and electrical systems don’t care what the market did this week—when they fail, you pay. If you’re aging in place, those costs can collide with fixed income at the worst moment.

Insurance is the second squeeze. If premiums rise or coverage terms tighten, homeowners can face higher monthly expenses, bigger deductibles, or required upgrades before renewal. That can hit resale value, too, because buyers are increasingly comparing not just the purchase price—but the “all-in” monthly cost of ownership.

Inflation is no longer a headline—it’s a maintenance bill. The latest CPI showed prices rising 0.3% in December, with inflation running 2.7% over the prior 12 months, according to the Bureau of Labor Statistics, and Reuters reported the data is consistent with a Fed that can stay patient on rates. For homeowners, that means parts, labor, and services may not “snap back” to pre-2020 pricing anytime soon.

Higher rates also keep people in place—and that often means renovating instead of relocating. Freddie Mac’s weekly survey put the average 30-year fixed mortgage at 6.16% as of January 8, 2026, per Freddie Mac. When moving is expensive, more households choose to repair what they have.

Meanwhile, home prices are rising modestly, not explosively. The FHFA reported prices up 1.7% year-over-year through October—helpful for equity, but not enough to “solve” rising upkeep and insurance costs by itself.

A home is still a cornerstone asset—but in 2026, it needs to be managed like one. The steady approach is to (1) fund a dedicated maintenance reserve, (2) prioritize big-ticket failure items before they fail, and (3) treat insurance shopping and mitigation steps as part of responsible household finance. Preparedness beats prediction—especially when the asset is sitting right under your roof.

Stay steady,
Kenneth Boyd
Author, Finance Writer, Former Investment Advisor & CPA