63% Of Millennial Homeowners Have Regrets About Their Purchase, Survey Finds
It’s the highest rate of dissatisfaction of any generation, according to a new Bankrate survey.
People ages 23 to 38 have home buyer’s remorse at almost double the regret rate of baby boomers.
Of all the millennials who are homeowners, almost two-thirds have regrets about their purchase, throwing into question the whole thesis of the American Dream — to one day own a home.
This compares to the overall population of home buyers, with 44 percent saying they had regrets, according to the survey. Bankrate.com commissioned YouGov Plc to conduct the survey, which had a total sample size of 2,668 adults, including 1,493 homeowners. Fieldwork was done online from Jan. 30-Feb. 1, 2019.
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The biggest pain points were unexpected maintenance and hidden costs,
which can be a shock to new homeowners after making a big down payment and paying cash for closing costs, said Luis Rosa, a certified financial planner in Henderson, Nevada.
Many millennials are not buying into the traditional American dream of homeownership, Housing Wire reported in 2018.
Millennials are more likely to use social media in their home searches than any other generation. More than 57 percent did so in their home searches — that’s three times the rate of both Gen Xers and baby boomers, according to a survey by home repair and renovation website Porch. Just 30 percent of millennials even visited their desired neighborhood to look at homes listed for sale, according to CNBC.
Just 54 percent of millennials believe the American Dream is attainable, and nearly a quarter say they’ve given up on their dreams of homeownership, according to Bank of the West’s annual Millennial Study.
Rising home prices are partly to blame. Most millennials — 58 percent — are renting or staying with friends or family. Just 42 percent own a home.
“The sad thing is, many of the 42 percent of millennials who have achieved homeownership regret it,” Jeremiah Jensen wrote for Housing Wire. “According to the report, 68 percent of millennial homeowners have buyer’s remorse, wishing they had been more prepared, had more money down or had better inspected the home before they bought it.”
Overall, 79 percent of Americans still think homeownership is part of the American Dream, according to Bankrate.