Not all millennials are happy about their first home purchase.
In fact, roughly six in 10 millennials have homebuyer’s remorse toward their first property, according to a new Bankrate survey.
The personal finance resource found that 64% of millennials between the ages of 25 and 40 have regrets about their first home, which is significantly higher than how Baby Boomers between the ages of 57 and 75 felt about their first home (33%).
Of those who had regrets, 15% of millennials said they were disappointed in the location they picked. Moreover, 14% of millennials regret buying a home that was either "too big" or "too small" for their needs.
Meanwhile, less than 10% of Baby Boomers said they regretted buying a home in a "bad location" (5%), buying a home that was too big (3%) or buying a home that was too small (7%).
Similarly, Gen Xers between the ages of 41 and 56 had fewer first-time homebuyer regrets than their millennial counterparts. Only 8% of Gen X respondents said they regretted buying a home in a bad location while 6% said they bought a home that was too big and 10% said they bought a home that was small.
Other factors millennials weren’t too happy about with their first home were largely money related, according to Bankrate’s survey.
More than one-fifth (21%) of millennials said their first home’s maintenance costs are "too much."
Additionally, more than a tenth of millennials said they think they overpaid for their home (13%) while others said they think their mortgage payments are "too high" (13%) or they have an unsatisfactory mortgage rate (12%).
Nine percent of millennials went as far as to say they think their first home was not a "good investment."
As of May 2021, the U.S. residential real estate market has been extremely competitive among buyers due to a housing shortage caused by disrupted supply chains for raw materials and scarce labor.
According to the Home Builders Institute’s Construction Labor Market Report, the industry is facing a "major shortage of skilled workers," including builders and subcontractors. Likewise, a report from Freddie Mac estimates the U.S. was short 3.8 million houses by the end of 2020.
The competitive market could very well result in impulse buying for some, but realtors throughout the country have warned Americans to not feel pressured into buying a home they’re not ready for.
"Because the market is so competitive [right now], you have less time to make a decision on a homebuying purchase than you do on a laptop at Best Buy," real estate broker Angelica Olmsted told Bankrate. "You’ve already had, possibly, a couple of offers not accepted, you feel that pressure to make a decision and put an offer in."
She added: "Having an agent who understands your wants and can push back when you need that is so important."