2023 home buyer report shows 81% of millennial first-time home buyers have buyers' regret
HOUSTON - Owning your own home is the American dream. But eight out of 10 millennials say becoming a first-time homeowner turned into a nightmare.
According to the 2023 Millennial Home Buyer Report, 82% of millennial first-time home buyers have buyer's remorse.
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"They're like you know what I don't love this home, I don't love my neighborhood. Maybe this is a little more expensive than I thought it would be, so a lot of people are looking at this like maybe this wasn't a smart move," said Tricia Turner, CEO of Tricia Turner Property Group.
"They weren't aware of the property taxes they would be paying, and how high they are. They weren't aware of some HOA dues that are always going to be due," said Joshua Gustafson, sales associate with Tricia Turner Property Group.
Millennials number one complaint: Paying too high of an interest rate.
"When you look at a mortgage rate on a $300,000 house at a 3% or 4% interest rate then to a 6% or 7% interest rate, you're looking at double the payment they thought it was going to be, which is huge," Turner said.
The second-biggest complaint of millennial home buyers: not knowing enough about home buying.
"There are a lot of steps," said Turner. "Going through inspections, going through the appraisal, do you have a survey, is your financing secured."
"It's actually imperative for millennials to make sure that they're talking to a real estate professional that has their best interest in mind," Gustafson said.
Millennials also cite buying in a bad location, bad neighbors, or buying a fixer as reasons for regret.
"Statistically homeowners will stay in their homes for five to six years," said Gustafson. "I would highly advise people to look at it as an investment, but also is it a safe place to raise your family, especially millennials with growing families, growing children."
"Just because we've crept up in values, when you look at it nationwide, Colorado, California, Atlanta. All these other places, we are much more affordable," Turner said. "Texas is still a hot spot and probably always will be."