6 in 10 millennials have homebuyer’s remorse about their first house
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Not all millennials are happy about their first home purchase.
In fact, roughly six in 10 millennials have homebuyer’s remorse toward their first property, according to a new Bankrate survey.
The personal finance resource found that 64% of millennials between the ages of 25 and 40 have regrets about their first home, which is significantly higher than how Baby Boomers between the ages of 57 and 75 felt about their first home (33%).
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Of those who had regrets, 15% of millennials said they were disappointed in the location they picked. Moreover, 14% of millennials regret buying a home that was either "too big" or "too small" for their needs.
Meanwhile, less than 10% of Baby Boomers said they regretted buying a home in a "bad location" (5%), buying a home that was too big (3%) or buying a home that was too small (7%).
Similarly, Gen Xers between the ages of 41 and 56 had fewer first-time homebuyer regrets than their millennial counterparts. Only 8% of Gen X respondents said they regretted buying a home in a bad location while 6% said they bought a home that was too big and 10% said they bought a home that was small.
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Other factors millennials weren’t too happy about with their first home were largely money related, according to Bankrate’s survey.
More than one-fifth (21%) of millennials said their first home’s maintenance costs are "too much."
Additionally, more than a tenth of millennials said they think they overpaid for their home (13%) while others said they think their mortgage payments are "too high" (13%) or they have an unsatisfactory mortgage rate (12%).
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Nine percent of millennials went as far as to say they think their first home was not a "good investment."
As of May 2021, the U.S. residential real estate market has been extremely competitive among buyers due to a housing shortage caused by disrupted supply chains for raw materials and scarce labor.