If you are having second thoughts about the home you just bought, you’re not alone. Nearly two-thirds of homeowners between the ages of 23 and 28 have some regret about their purchase, according to new survey data from Bankrate.
At 63 percent, millennials are more likely to regret the home they bought more than any other generations. Only 35 percent of baby boomers and 44 percent of all Americans surveyed feel the same way.
The survey was conducted via online questionnaire between January 30 and February 1 of this year. It included 2,668 adults from around the country, 1,493 of whom were homeowners.
Those who had buyers’ remorse said their regrets mostly stemmed from home maintenance costs and other unexpected expenses related to buying a home. Many millennials reported that hidden costs have caused them serious financial problems years after a purchase.
“Buyer’s remorse can easily be avoided with adequate research and planning,” said Bankrate analyst Deborah Kearns in a prepared statement. “[…] Budgeting early on can prevent dipping into emergency savings or going into debt to handle these added expenses.”
To avoid financial struggles, Bankrate recommends putting aside one percent of the home’s purchase price each year as a safety net for any breakdowns or unexpected repairs that may occur. But as mortgage rates rise and homeowners are forced to spend more and more of their paychecks on their monthly payments, that option may not be viable for everyone.
“Taking on a larger mortgage payment than you can comfortably handle is a recipe for disaster,” Kearns said.
That said, hidden costs was not the only reason for regret as 12 percent worried that they bought a house that’s too small while 7 percent felt that they had made a poor investment.
But even as homeownership slides increasingly out of reach, the dream of its unites most Americans — 79 percent of said that they feel owning their own home is a key part of the ‘American Dream.’