Millennials Reveal Their Homebuying Regrets

Homeownership in the United States has become a ‘damned if you do and damned if you don’t’ situation, especially for the generation that has been kept off the property ladder the longest: millennials.

A majority of 67 percent of Americans born between 1981 and 1996 who don’t yet own a home regret not buying one when prices were lower; this is according to a November 2024 survey of 1,000 millennials who plan to buy a home in 2025, conducted by Clever Real Estate for Real Estate Witch. But, at the same time, 82 percent of millennials who do own a home regret at least one aspect of their first home purchase, the survey found.

Why It Matters

Millennials’ homeownership dream, delayed and frustrated by two financial crises in less than twenty years, is now being thwarted by the affordability crunch plaguing the U.S. housing market.

Despite a recent dip in sales due to the fact that so many homebuyers have been squeezed out of the market over the past few years, home prices are still rising across the country: the median sale price of a home in the U.S. was $427,388 in December, according to the latest Redfin data, up 6.1 percent compared to a year earlier.

Mortgage rates, despite recent rate cuts from the Federal Reserve, are still hovering around the 7 percent mark. Even for those who have managed to buy a home, things don’t get easier: the cost of housing is surging in the U.S., with rising homeowners association (HOA) fees, property insurance premiums, and property taxes.

What to Know

For a majority of millennials, it is probably a surprise that the same dream they spent years striving for might turn into a bit of a nightmare once it comes true. A majority of 81 percent of millennials told Clever Real Estate that they are planning to buy a home in 2025 and they are confident they won’t regret it.

But about 82 percent of millennial homeowners already have some regrets: 19 percent found that they are outgrowing their first home too quickly; 18 percent realized their home lacks their desired features; 17 percent compromised on location for a home that fit their budget; 17 percent have bad neighbors; 15 percent regret not knowing more about homebuying; and 15 percent underestimated property taxes and insurance costs.

Additionally, 14 percent said their home is in a bad location; 13 percent regrets buying a fixer-upper; another 13 percent now think they rushed the purchase; 13 percent also find the upkeep of their home too expensive; 11 percent think their interest rate is too high; 11 percent find that homeownership is just too costly; and 10 percent think their mortgage is too costly.

What People Are Saying

Phil Powell, executive director of Indiana University’s Business Research Center, previously told Newsweek: “If I’m a millennial household, I either have to allocate more money to savings or reduce my expectations. It’s the brutal reality of supply and demand. Millennials are saddled with higher real costs of college than their parents and with higher housing costs. It’s going to continue to be bad for several years.”

Sara Coers, a lecturer in real estate at Indiana University, previously told Newsweek: “[Millennials] are really the victims of freak circumstances. We overbuilt prior to the last recession and the capital markets, the lenders, the banks thought we didn’t really want to build new homes after that. They weren’t paying attention to the future of household formation. And we dramatically undersupplied the country.”

Real Estate Witch said that 2 in 3 millennials can’t afford the median-priced home in the U.S., which is at $420,000. About 68 percent of respondents to their survey said they are looking to purchase a home this year that costs less than $400,000—up from 57 percent who said that last year.

Almost all of respondents—96 percent—have concerns about buying a home, with 44 percent saying they are worried about finding an affordable home, up from 35 percent in 2024. Among the 97 percent who faced barriers to homeownership, 52 percent think homes are too expensive; 48 percent think interest rates are too high; and 44 percent find it too difficult to save for a down payment.

Millennials are losing hope: just 21 percent thought it was possible for their generation to buy a home, down from 52 percent who thought the same last year. But even as homeownership remains largely unaffordable and they are likely to regret it, millennials still dream of buying a home—or feel like they have to own one.

While 69 percent told Clever Real Estate that renting is easier than owning a home, 74 percent think homeownership is still part of the American dream, and 62 percent would consider themselves failures if they never achieved it.

Millennials would be willing to buy homes that need major repairs as long as they could get on the property ladder: 41 percent would buy a home with asbestos, and another 41 percent would buy one infested with mice, cockroaches, and spiders; 40 percent would buy a property with a leaky roof.

What Happens Next

Experts expect more inventory to reach the U.S. market this year, softening price growth and offering homebuyers more options.

Fifty-four percent of Americans, according to a recent NerdWallet’s study, think there’s too much pressure to own a home in the U.S. If you agree, we’d like your opinion. Contact g.carbonaro@newsweek.com.