Many young homebuyers, despite feeling happy overall happy with their home purchases, felt rushed and dissatisfied with the mortgage process. According to a study from Zillow, 81% of young homeowners (between 18-34 years old) had at least one regret about their home, compared with 65% of those 55 years and older, with the biggest disparity being regrets about their mortgages.
"The American Dream of homeownership is still alive and well, and younger buyers who are building families and forging their careers must stretch their budgets to achieve it," said Zillow Director of Economic Research Skylar Olsen. "They have long wish lists to fit their needs, and are often navigating the process of buying for the first time. While their inexperience may lead to wishing they'd done some things differently, few homeowners regret making the decision to buy instead of rent."
Zillow notes that the lower level of satisfaction among younger buyers could be due to their inexperience with the homebuying process. Additionally, many of these buyers are likely still living in their first home, and 29% of young homeowners regret rushing the process, compared with 12% of older buyers.
Millennial homebuyers are also contact more lenders than other groups when planning to buy a home, but are still impacted by more debt affecting their credit scores, and therefore their interest rates.
Many millennials are turning 34, the median age of first home purchases, and Zillow states that for these potential buyers, being educated and prepared can help avoid some of these common regrets.
High mortgage rates make up the highest share of regrets for first time homebuyers, with 30% of homebuyers aged 18-34 reporting high mortgage payment as their biggest regret, compared to 12% of buyers aged 55 and up. Other regrets include feeling rushed during the mortgage process, high interest rates, type of mortgage, and simply deciding to buy a home instead of renting.