Millennial homeowners have a bad case of buyer’s remorse, according to a new survey.
Nearly two thirds, or 63 percent, of millennial homeowners surveyed by Bankrate.com said they had regrets about buying. That is more than any other age group, defined in the survey as people aged 23 to 38, and nearly double the regret rate of baby boomers. Overall, about 44 percent of U.S. homeowners say they have regrets about their purchase.
Millennials have been slow to enter the ranks of homeowners, thanks to the last recession and the housing crash that caused it. Now, as they age into marriage and parenthood, they are buying at a faster pace. Many, however, are regretting it.
What seems to irk millennials most is maintenance. They didn’t factor in the high costs of fixing what breaks. Young buyers may have been renters previously, and not even considered maintenance since it was never a factor financially.
“Repairs and maintenance costs are something all homeowners face,” said Bankrate analyst Deborah Kearns. “Consumers should expect to set aside 1 percent of their home’s purchase price each year to keep in a savings account to cover these expenses. Budgeting early on can prevent dipping into emergency savings or going into debt to handle these added expenses.”
Other regrets — the type and location of the home purchased. About 12 percent of those surveyed said the house they bought was too small, while 5 percent said it was too large. Despite the old real estate adage, “location, location, location,” 8 percent said they bought in the wrong location.
Some of the problem may stem from millennials being much more likely to use social media in their home searches than any other generation. More than 57 percent do just that – which is three times the rate of both Gen Xers and baby boomers, according to a recent survey by Porch, a home repair and renovation website. Only about 30 percent of millennials even visited their desired neighborhood to look at homes listed for sale.