A new survey by Guardian Service reveals that many first-time homebuyers regret buying a home and are grappling with unexpected costs and emotional stress, factors that often turn the dream of homeownership into a difficult reality.
According to the report, 31% of first-time homebuyers experienced remorse after buying their first home, and 9% felt they shouldn’t have bought it at all.
The rate of regret was even higher among recent buyers, with 44% of those who purchased within the last two years expressing such feelings. Younger generations felt it most acutely, with 35% of Gen Z and millennial homeowners reporting remorse.
Pressure and emotions play major roles
The survey points to rushed decisions as a significant contributor to dissatisfaction, with 38% of first-time homebuyers feeling pressured to make a homebuying decision quickly. Those who reported feeling rushed were nearly three times more likely to regret their decision.
Emotional strain also played a significant role. Feelings of being overwhelmed (34%), stressed (28%), or nervous (25%) were strongly linked to financial decisions later regretted. For some, adjusting to homeownership took time, with 16% saying it took over a year to feel truly settled.
Financial challenges, missed steps
Unexpected expenses caught many first-time buyers off guard.
Sixty-six percent reported unanticipated home issues after purchase, with average repair costs totaling $5,356. Gen Z and millennial homeowners, as well as those who purchased within the last two years, were the most likely to encounter these problems.
Seventeen percent of first-time buyers skipped a home inspection, a choice more common among lower-income buyers (23% of those earning under $50,000 annually).
Data also shows those earning less than $50,000 as 50% more likely to regret their home purchase compared to individuals bringing in $100,000 or more each year.
In terms of budgeting, many buyers missed the mark. While half stayed within their intended price range, 45% spent more than planned. Similarly, 41% underestimated the costs of homeownership after purchase. More than one in four buyers said they lacked sufficient financial knowledge at the time of purchase and 42% of that group ended up regretting their decision.
Common regrets, lessons learned
Top homebuyer regrets cited were underestimating repair costs (22%), choosing the wrong home size (19%), and rushing the decision (15%). When asked what they would do differently, 25% of respondents said they would choose a different home, 22% would have been more financially prepared, and 21% would have negotiated more aggressively.
The survey also noted generational patterns. Gen X homeowners were most likely to want a different home altogether (29%), while younger buyers often lamented poor negotiation and overpaying.
The primary motivation for buying, across all age groups, was the desire to stop renting (63%). Social and peer pressure played a notable role, particularly among younger buyers.
Despite the challenges, most buyers saw their home as more than just an investment.
“Sixty-five percent considered it primarily a personal space, with 28% viewing it as both a personal and financial asset,” the report stated.
