A new survey from Bankrate finds that nearly half of American homeowners—45 percent—have at least one regret about the home they bought. This statistic arrives on the heels of increasing costs of owning a home, often creating striking costs for individuals and families. Homeowners have many other costs beyond their monthly mortgage payment. They already owe nearly $300,000 on average in non-mortgage home expenses.
The results of our June 2024 Hidden Cost of Homeownership Survey illustrate the financial strain that many homeowners experience. Mark Hamrick, a senior economic analyst at Bankrate, reminds would-be buyers that ongoing homeownership expenses should be built into a budget before making the leap. He cautions prospective buyers to avoid going “out over your skis” when submitting property offers. Then they fail to account for hidden costs, netting them into a financial squeeze.
High upfront homeownership costs may make it difficult for people to make important updates or maintenance decisions, leaving them unhappy in their homes. American homeowners in a national survey say that these financial burdens threaten to drive them into personal bankruptcy. In Hawaii and California, the homeownership penalty takes a particularly harsh toll. Homeowners have to pay annual fees, which can add up to nearly $29,000 per each year. Bankrate’s analysis indicates that high expense in heavily populated areas is pushing homeowners to feel more remorse. These mounting financial pressures are taking their toll on their homeownership experience.
As the housing market has tightened, new conditions have fostered competition and escalated the effects of reduced inventory. As a consequence, would-be homebuyers are often unable to locate a home that aligns with their desires and requirements. Hamrick notes, “We live in a highly competitive society and economy, and I think all too often people are being overly severe with their judgments about themselves.” This feeling speaks to the realities and pressures all buyers have in the market these days.
The survey emphasizes the importance for potential homebuyers to conduct their own research. They need to thoroughly consider all their costs for a home purchase before deciding on a final offer. Hamrick suggests homeowners always seek a second inspection from a specialist. This can assist them in realizing any concerns they may need to know about that may be discovered after the sale.
Homeownership provides the kind of stability and physical roots that can help foster a deep sense of place and belonging. It can introduce a host of new stressors. The fiscal environment of the American dream has transformed entirely. Unfortunately, millions of Americans are second guessing their choices due to these unexpected burdens. In fact, almost half of all homeowners have had buyer’s remorse. Their story is a harbinger that will be followed by anyone thinking of joining the market.