The newest national survey [1] of new homeowners commissioned by U.S News & World 360 Report Reviews [2] found that a majority of new homeowners who purchased a home since the beginning of 2021 reported that they felt “house rich and cash poor” with many admitting they felt pressure to buy as home prices ramped up.
Using Pollfish [3], U.S. News surveyed 2,000 households on their homebuying experience. The group was selected to be representative of the population at large. Forty-four percent of respondents were female; the remaining 56% identified as male.
“Our new homeowner survey reveals the current stressors involved in the homebuying and moving experience among first-time buyers—more than half (56%) of new homeowners reported unexpected repairs since moving in and one-third (33%) spent more than $1,000 in unexpected repairs since moving in,” said Kyle Wagner [4], Ratings Editor for 360 Reviews. He added, “Perhaps most surprising is the fact that respondents ranked moving as the most stressful life event more stressful than breaking up with a romantic partner, planning a wedding, or having a baby.”
Adding to that stress, the median sales price of a home went from $335,900 at the beginning of 2021 to $449,000 in May 2022, which surely pressured people to get into homes sooner than they otherwise would have.
All-in-all, 50% of new homeowners wish they would have waited to buy a home until they had more money saved. Forty percent of homeowners bought their home because of rising prices while 35% wish they had bought a home earlier than they did.
According to the report, respondents who wished they’d waited longer to buy also primarily cited financial reasons: half of them (51%) said they wished they’d waited so they could save more money, and almost half (47%) said they wished they’d waited “until home prices went down.”
The costs of new homeownership were also a stressor for respondents. Two-thirds (66%) purchased a home warranty (but 14% don’t understand how their policy works), 56% of new homeowners had unexpected repairs since moving in, and 33% spent more than $1,000 in unexpected repairs since moving in.
While quantifying stress can be a challenge, the survey also asked respondents to rank how stressful buying a house was compared to other common, high-stress life events—respondents ranked purchasing a home as the most stressful life event they have endured, higher than breaking up with a partner, planning a wedding, or having a child.
Click here [1] to view the report in its entirety.