Why is homeownership harder to sustain in 2025?

For generations, the American Dream has been defined by homeownership. But in 2025, that dream is harder to hold onto. Rising mortgage rates, high home prices and the day-to-day cost of living have left many families stretched thin.

Even as interest rates show signs of easing, affordability pressures remain, forcing buyers to ask not only, “Can I afford this home today?” but also, “Can I afford to keep it tomorrow?”

The reality is the question of affordability only begins at closing. Nearly half of Americans say they couldn’t cover a $1,000 emergency expense. For a new homeowner, that could mean a single breakdown like a furnace in the winter, a leaking water heater or a failing air conditioner can shift the balance between financial stability and financial strain.

To preserve affordability and protect consumer confidence, buyers need a plan for sustaining their homes long after move-in day.

Who’s most at risk?

Today’s homeowners are financially stretched across the board. More than three in five say they’re already worried about how they’ll cover maintenance and repairs this year, with younger and first-time buyers feeling this pressure most acutely.

The market has made many of these buyers vulnerable, with many families depleting their savings just to close and having little cushion left. And while waiving inspections to stay competitive is increasingly common, skipping a professional “look under the hood” is like buying a car without even kicking the tires. For these families, even one unexpected breakdown can turn the dream of homeownership into a financial nightmare.

The rising cost of repairs

The numbers speak for themselves. In 2024, 83% of homeowners faced an unexpected repair, nearly double from the year before and nearly half spent more than $5,000 addressing those issues. Since 2020, HVAC costs alone have nearly doubled, with prices projected to keep climbing.

The stress takes an emotional toll. According to Angi, the anxiety tied to home repairs now outranks debt, healthcare and childcare for many families. Simply put, the cost of keeping a home running has become one of the biggest threats to housing affordability.

Planning beyond the mortgage

To make homeownership sustainable, buyers have to budget for more than the down payment and monthly mortgage, which is where a warranty comes in. A home warranty acts as both a budgeting and protection tool, helping homeowners manage unpredictable costs and shield themselves from inflation-driven price hikes.

Rather than worrying if they can afford a repair, homeowners with a warranty know exactly who to call for help. That shift provides financial relief but perhaps even more importantly, also grants confidence and peace of mind.

Two-thirds of homeowners agree that a warranty would improve their confidence, and 72% say they’d be more likely to purchase one if they understood the coverage. The takeaway is clear: protecting the investment includes the mortgage and planning for inevitable repairs.

Why real estate professionals should care

Agents play a pivotal role in this conversation. Their influence doesn’t stop at the closing table. By guiding their clients to think about maintenance and protection, agents help buyers safeguard their investment for the long term.

Recommending a warranty shows foresight, strengthens trust, and reduces post-closing stress. For agents, it’s an opportunity to position themselves as true advocates, helping families not only get into a home but helps them stay in it.

Keep homeownership within reach

The American Dream is still alive, but it needs safeguarding. With costs rising and budgets stretched, homeowners who prepare with the right protections are better positioned to thrive. Even more, real estate professionals who guide their clients in that direction build a lasting relationship that goes far beyond the closing table.

Gina McCort is Vice President of Sales at Cinch Home Services, where she leads national strategy and partnerships in the residential real estate space.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece:  tracey@hwmedia.com