Gen Z and millennials have regrets over home purchases, study finds
Study: Millennial homebuyers regret buying homes
The American Dream has always included buying your own home, but recently, it's been harder to check that off the list. It's causing a lot of millennials and Gen-Zers to regret becoming homebuyers. Genevieve Curtis reports.
TAMPA, Fla. - There’s some buyers' remorse for younger homebuyers who may have jumped at low interest rates during the pandemic, and are now finding the cost of ownership is more than they bargained for.
St. Petersburg realtor Jack Cleary sees that trend in the market emerging, with first-time home sellers moving on from their first homes quicker.
"Now, younger people are using it as a stepping stone," he said. "High home prices, student debt, plus inflation. It just means that younger buyers can't go for that forever home that they used to be able to afford maybe at a different time in life in the past," he said.
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By the numbers:
Real estate website Open Door surveyed first-time home sellers who sold or listed in the past year.
They found 94% of Gen Z sellers and 86% of millennials had regrets about buying a house.
First-time homebuyers surged in 2020, with many seizing the opportunity to get low interest rates while working remotely.
File: For sale sign.
What they're saying:
Now, Cleary says, they are finding it doesn’t align with their lifestyle.
"I’ve come to realize that younger folks want to spend more on experiences and travel than they do on the nest egg and the home," he said.
Younger buyers often underestimate the cost of a home’s maintenance or repairs. Inflation and interest rates can add to that.
"I think the key is educating them on what's realistic and sustainable, so that their first time buying a home is not something they regret when they put it on the market, however long later," he said.
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But Cleary says those who bought during the low interest rates in 2020 may not want to rush to sell.
"Maybe rent this out, just because you don't want to walk away from something that you have at such a cheap interest rate. Like, renting money at 3% isn't going to happen anytime soon," he said.
The survey also found that the majority of first-time home sellers aren’t planning to buy right away, either. Instead, they’ll live with friends or family, rent or wait for better conditions.
The Source: Information for this story was gathered by FOX 13's Genevieve Curtis.
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