Introduction to Homeownership Regrets
There are no regrets in life, they say, just lessons. And homeownership comes with many lessons.
No fewer than 45% of current homeowners say they have at least one regret about the purchase of their home, according to a new Bankrate survey. From runaway repair costs to untenable mortgage payments, the burdens of homeownership can lead some unfortunate homebuyers to think twice about the biggest financial decision of their lives.
Common Regrets Among Homeowners
More than two-fifths of regretful owners pointed to maintenance and other hidden costs as a source of their regret, reporting that post-purchase homeownership was more expensive than they expected.
Frustrated homebuyers reported repairs, space issues and mortgage rates among their chief complaints. Getty Images/iStockphoto
“For most folks, buying a home is the most expensive transaction of their lifetime,” said Bankrate senior economic analyst Mark Hamrick. “After the purchase is complete, we find that affordability issues rank high on the list of regrets. While homeownership is still associated with the proverbial American dream, it is prudent to consider and plan for many ongoing costs of ownership, not just getting over the threshold of the down payment and settlement.”
Specific Regrets
Buying too small of a house was the second most common regret, at 21%.
A 2024 survey by Talker Research found that space complaints arise relatively quickly among Americans — nearly half reported feeling cramped in their home within a year of living there.
Some buyers expressed regret over their spending. Getty Images
Too-high mortgage payments (16%) and overpaying for the house (15%) followed the top complaints.
More than a third of buyers who purchased homes during the red-hot post-pandemic market reported believing they had overpaid, according to a 2022 survey by Money and Morning Consult, and there’s evidence of whiplash in today’s market. Overvalued home prices and reluctant buyers are slowing the pace of sales across the country.
Demographic Variations in Regrets
Lesser regrets surveyed, according to Bankrate, included buying a house in a bad location, at 14%, and buying too big of a house, at 11%.
Regrets varied among age groups, with older owners more likely to bemoan repair costs. Getty Images
Homeownership regrets varied by generation, the Bankrate survey found. Baby boomer homeowners were more likely to regret high maintenance costs — a potential consequence of older people owning older homes. Younger generations of homeowners, like millennials, were more likely to regret taking on high mortgage payments and rates.
Positive Outlook Despite Regrets
Despite the shadow of regret, the survey has a big bright spot — 55% of homeowners reported having zero regrets about purchasing their current home, particularly baby boomers. Nearly 60% of homeowners between the ages of 61 and 79 said they had no second thoughts.
“While some homeowners have a regret about the purchase of some kind, it is telling that the vast majority would do it all over again if they had the chance,” Hamrick said.
Despite some gloomy respondents, a majority still believe that owning a home is a part of the American dream. Getty Images/iStockphoto
Respondents widely agreed that homeownership remains a part of the American dream, and 70% said they would buy their current home again if they had a do-over.
“For those who might yet purchase a replacement home in future years, whether buying larger or downsizing, some of these would-be lessons learned can prove useful,” Hamrick said.
Conclusion
In conclusion, while nearly half of homeowners have at least one regret about buying their home, the majority still believe in the value of homeownership. By understanding the common regrets and demographic variations, potential homebuyers can make more informed decisions and avoid common pitfalls.
FAQs
Q: What is the most common regret among homeowners?
A: The most common regrets among homeowners are maintenance and other hidden costs, followed by buying too small of a house.
Q: Do homeownership regrets vary by generation?
A: Yes, homeownership regrets vary by generation, with baby boomers more likely to regret high maintenance costs and younger generations more likely to regret taking on high mortgage payments and rates.
Q: What percentage of homeowners reported having zero regrets about purchasing their current home?
A: 55% of homeowners reported having zero regrets about purchasing their current home.
Q: Do most homeowners still believe in the value of homeownership?
A: Yes, despite some regrets, the majority of homeowners still believe that owning a home is a part of the American dream, and 70% said they would buy their current home again if they had a do-over.
