Warrantina Wisdom: Homeownership Predictions for 2025

A new year always brings its share of surprises, triumphs, and challenges. Will your team make it to the championship? Will you somehow remember every important birthday? Will you finally tackle that overflowing attic?

Warrantina has always had a love for appliances and home systems. But with that love comes a sixth sense for what the household future holds. Her Warran-chi connection with homes encourages us to expect the unexpected when it comes to homeownership— and embrace the zen state of mind that a home warranty can bring.

The future of home buying & selling

The real estate market can be unpredictable and hard to track. Warrantina’s all-seeing eye reveals that 2025 will see homeowners and buyers grappling with affordability, climate resilience, and the growing need for adaptable living spaces. Here’s what the future holds:

Southern states will dominate the housing market

The facts: The sun shines brighter in the South, and so does its housing appeal. Last year, 43% of homebuyers bought a home in the South, thanks to its warmer climates and affordability. At the same time, the South has also become increasingly more vulnerable to climate disaster.

Advice:

• For Homeowners: Invest in maintaining HVAC systems and upgrading your home’s resilience to extreme weather. Add a home warranty to protect your home’s major systems and appliances against wear and tear over time.
• For Real Estate Agents: Highlight energy-efficient HVAC systems and climate-proof features in listings to capture buyer interest.

A surge in smart, sustainable homes

The facts: With buyers valuing air conditioning (83%), water-tight windows (72%), and smart home systems (36%) in 2024, the next year will likely usher in a new era of eco-conscious and tech-savvy living. Energy efficiency is gaining traction, bolstered by tax incentives and cost savings.

Advice:

• For Sellers: Showcase energy-efficient cooling systems, smart integrations, and eco-friendly upgrades to enhance property appeal.
• For Buyers: Prioritize homes with smart systems and sustainable features for long-term cost savings and environmental benefits.

The rise of multigenerational living

The facts: Affordability challenges persisted in 2024, with the cost of homeownership soaring to $3,800 per month— a 64% increase in just four years. High mortgage rates (6-7%) have been steering families toward multigenerational living, with 17% of purchases in 2023 already catering to this trend.

Advice:

• For Sellers: Highlight adaptable spaces such as guest suites or accessory dwelling units in your listings. These flexible housing options will resonate with families looking for affordable, multifunctional living solutions.
• For Buyers: Consider homes that allow for multigenerational living to maximize value and provide long-term flexibility.

The year ahead in home maintenance

From keeping your HVAC humming or avoiding a burst pipe disaster, staying ahead of repairs is critical— but not always easy. Warrantina foresees 2025 being a year where homeowners take a more proactive and practical approach to protecting their homes and budgets.

The financial strain of maintenance costs

The facts: On average, homeowners spend $5,775 annually on maintenance, with new homeowners shelling out as much as $12,225 in their first year. High-cost repairs— like replacing an AC unit (up to $5,000) or a heating unit (up to $6,000)— can create financial turmoil, especially since 44% of homeowners don’t budget for unexpected repairs.

Source: AHS 2022 Clearvantage Study
 

*Repair/replacement cost is the eightieth percentile as reported in a nationwide survey of
homeowners conducted in 2024 by ClearVantage for American Home Shield.

Advice:

• For Homeowners: Establish a maintenance budget and schedule regular upkeep to prevent costly surprises. Incorporate a home warranty to shield against big-ticket repair costs.
• For New Homeowners: Expect higher maintenance expenses during your first year and consider a home warranty to soften the blow of sudden out-of-pocket costs.

DIY decline and professional services on the rise

The facts: While some homeowners pride themselves on DIY skills, a significant portion (41%) feel helpless when something breaks. Among those who attempt DIY fixes, 17% regret it. Younger generations, including millennials and Gen Z, are increasingly unfamiliar with basic maintenance tasks like changing HVAC filters.

Advice:

• For Homeowners: Use educational resources, like the Home Matters blog, American Home Shield, to bridge your maintenance knowledge gap. A home warranty provides access to experts and Pros, taking the stress out of repairs.
• For Potential Buyers: When budgeting for a new home, factor in the cost of professional maintenance services, especially if you’re not handy with repairs.

First-year challenges and beyond

The facts: 92% of new homeowners experience issues within their first year, such as appliance replacements (47%), leaks (22%), and HVAC failures (16%). Even seasoned homeowners face appliance (59%), roof (54%), and plumbing (53%) repairs.

Advice:

• For Buyers: Conduct a detailed home inspection before purchasing, but don’t stop there— seek properties with home warranties to cover potential hidden issues.
• For Homeowners: Stay proactive by addressing deferred maintenance and scheduling regular upkeep. For those purchasing pre-owned homes, early assessments can prevent long-term issues.

What’s hot in home design for 2025

​​The future of home design will blend technology, comfort, and functionality. From smart integration to cozy vibes, here’s what Warrantina sees in store for homeowners in 2025:

The rise of smart technology

The facts: Smart lighting is now popular among 52% of homeowners, and the demand for discreet tech— like wireless chargers disguised as picture frames— is growing.

Advice:

• For Homeowners: Upgrade to smart lighting, thermostats, and integrated systems to enhance convenience, save energy, and boost your home’s value.
• For Sellers: Showcase tech-forward features that blend with home decor to appeal to modern buyers.

The coziness craze

The facts: “Cozy” is the new buzzword in real estate, with mentions in listings up 35%. Buyers are favoring purpose-specific rooms and smaller, functional spaces over sprawling open layouts.

Advice:

• For Sellers: Highlight the comfortable aspects of your home to attract buyers.
• For Buyers: Consider smaller, well-designed spaces that offer energy efficiency and coziness over larger, less functional layouts.

A boom in essential renovations

The facts: Renovation spending has soared by 60% since 2020, with kitchens and bathrooms topping the priority list. Upgrades frequently include plumbing (28%), electrical systems (26%), and heating/cooling systems (23%).

Advice:

• For Homeowners: Kitchen and bathroom renovations can significantly improve your quality of life and boost resale value. Hiring skilled professionals ensures long-lasting results.
• For Those Planning Renovations: Use the opportunity to update plumbing, electrical, and HVAC systems to improve efficiency and reduce future maintenance costs.

The home warranty of tomorrow

Home warranties boost the aura of any home, quietly protecting budgets and giving you peace of mind. As 2025 unfolds, Warrantina has turned to the tea leaves to predict that awareness and adoption of home warranties will grow, transforming the way homeowners approach repair and maintenance. Here’s what the future holds:

Increased awareness and utilization of home warranties

The facts: Most homeowners (67%) already find home warranties worth the cost, but many (44.3%) feel they aren’t using them to their full potential. HVAC systems, dishwashers, and refrigerators lead the list of repairs.

Advice:

• For Homeowners: Regularly review your home warranty coverage to ensure you’re getting the most out of it. Confirm that essential systems like HVAC and major appliances are covered to avoid surprise expenses.
• For Potential Homebuyers: Ask your real estate agent about protecting your investment with a buyers and sellers home warranty.

The HVAC system spotlight

The facts: With HVAC systems leading last year’s warranty claims— particularly in warm states— these climate-critical systems are working harder than ever. Homes aged 21–40 years represent 21.6% of warranty coverage needs.

Advice:

• For Homeowners in Warm Climates: Make sure your home warranty includes robust coverage for HVAC systems, as these are critical for comfort and often costly to repair. If they give access to additional perks like tune ups or upgrades, even better!
• For Owners of Older Homes: A home warranty is a smart investment to manage repair costs for aging appliances and systems. An American Home Shield warranty plan extends covered items no matter their age.

Warranties as a selling advantage

The facts: Homes with warranties sell 11 days faster on average, but only 4% of homeowners currently have one. Additionally, 27% of homeowners wish they’d gotten a warranty in their first year.

Advice:

• For Sellers: Include a home warranty with your listing to make your property stand out and close sales faster.
• For Real Estate Agents: Encourage sellers to offer warranties, as they boost buyer confidence and add a competitive edge to listings.
• For Buyers: Look for homes that come with a warranty to gain peace of mind during your first year of ownership.

Shop Plans

Your key to thrive in 2025

The future of home ownership in 2025 is full of possibilities. And with Warrantina’s help demystifying what lies ahead, it’s clearer than ever how to make the most of your investment this year.

A home warranty plan is your ultimate companion for peace of mind. From the kitchen to the laundry room, rest easy knowing that you’ve got American Home Shield in your corner helping protect what matters most. With plan options for up to 23 of your home’s important systems and appliances, there’s no need to dread the future: you can already be sure it’s looking bright.

AHS assumes no responsibility, and specifically disclaims all liability, for your use of any and all information contained herein.