Nearly two-thirds of millennial homebuyers say they are having some second thoughts about their big purchase, according to a new Bankrate.com survey.
Overall, 64% of millennial homebuyers — defined as those between the ages of 25 and 40 — said they have some regrets about buying their home. The top regret? Underestimating maintenance costs and other hidden costs, which was cited by 21% of millennial buyers, according to the survey.
“Owning a home still tops the American dream list, but it can cause a rude awakening if one fails to plan for inevitable expenses,” said Bankrate.com senior economic analyst Mark Hamrick in a news release.
“This is yet another reminder why making emergency savings a top priority is so important. Whether it is a roof repair stemming from age or storm damage, or the need to fix or replace heating, cooling or appliances, it isn’t a question whether such expenses arise, only when and how much they will cost.”
Millennial dissatisfaction stands out when compared to other age groups.
Fewer than half of buyers of all age groups — 43% — said they had regrets about buying their home. And 57% of all buyers said they didn’t regret a thing. That compares to just 36% of millennial buyers who said they were similarly unbothered by their home purchase.
Still, homebuyers of all ages agreed they had some regrets. Concerns cited included too-high mortgage payments and buying a house that was too big or too small. But in general, those common regrets were more frequently cited by millennials.
- Mortgage payments being too high (cited by 13% of millennial buyers vs. 6% overall)
- Not getting the best mortgage rate (cited by 12% of millennial buyers vs. 7% overall)
- Buying too big of a house (cited by 14% of millennial buyers vs. 7% overall)
- Too small of a house (cited by 14% of millennial buyers vs. 9% overall)
- Home being in a bad location (cited by 15% of millennial buyers vs. 8% overall)
Bankrate.com commissioned the online survey, which was carried out YouGov. The total sample size was 2,653 and included 1,425 homeowners.
The D.C. area is home to a large number of millennial homebuyers. Homebuyers age 25-40 made up more than half — nearly 55% — of all buyers, according to a January study by LendingTree.