Millennials Regret Buying Their Homes—Here’s Why

Homeownership has long been a cornerstone of the American dream, but for millennials, it comes with unexpected challenges. While many regret not buying earlier when prices were lower, those who have purchased a home are now facing financial and lifestyle concerns that leave them questioning their decisions.

The Reality of Homeownership Regret

A survey conducted in late 2024 found that 82% of millennial homeowners regret at least one aspect of their first home purchase. The most common regrets include:

• Outgrowing their home too quickly (19%)
• Lacking desired features (18%)
• Compromising on location for affordability (17%)
• Dealing with bad neighbors (17%)
• Underestimating taxes and insurance costs (15%)
• Struggling with high mortgage payments (10%)

Many also find homeownership more expensive than expected due to rising homeowners association (HOA) fees, property insurance, and maintenance costs.

Affordability Challenges Persist

Even as homeownership remains a goal for many, affordability concerns are growing. The median home price in the U.S. reached $427,388 in December 2024, up 6.1% from the previous year. Meanwhile, mortgage rates remain near 7%, making it difficult for first-time buyers to enter the market.

According to the survey, 96% of millennial homebuyers have concerns, with top worries including:

• Home prices being too high (52%)
• Interest rates making mortgages unaffordable (48%)
• Difficulty saving for a down payment (44%)

With these barriers in place, only 21% of millennials believe homeownership is realistic for their generation, a significant drop from 52% the previous year.

The Dream vs. Reality

Despite financial hurdles and rising regrets, millennials still hold on to the dream of homeownership. While 69% believe renting is easier, 74% still see owning a home as a key part of the American dream. Furthermore, 62% would feel like failures if they never owned a home.

Many are willing to make extreme sacrifices just to get on the property ladder:

• 41% would buy a home with asbestos
• 41% would purchase a property with pest infestations
• 40% would take on a home with a leaky roof

Conclusion

Millennials face a difficult housing market—unable to afford homes yet feeling pressured to buy. With financial strains, unexpected costs, and market uncertainty, homeownership remains both a goal and a challenge for this generation.