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    Real Estate
    Wednesday, April 24, 2024

    Survey: Homeownership comes with regrets, but is preferable to renting

    Buyer's remorse is a common symptom of any long-term purchase. You may fear that you've paid too much for a lackluster vehicle, or that you won't be happy with a new furniture set after a few years.

    A survey by the real estate site Zillow suggests that a majority of homeowners have at least one regret about the property they purchased. However, few of them wish they were renting their residence instead.

    In its Zillow Housing Aspirations Report, 72 percent of homeowners said they have at least one regret about their residence. Regrets were more common among respondents between the ages of 18 and 34, with 81 percent having at least one complaint about their home. Just 65 percent of those ages 55 and older felt the same.

    Thirty percent of the 18-34 group said they felt their mortgage payment was too high, while 29 percent believed they had rushed the process without evaluating all the options available to them. Twenty-seven percent said their interest rate was too high, while 22 percent regretted the type of mortgage they got.

    These concerns were much less pronounced among older homeowners. Among those ages 55 and older, 12 percent said they felt rushed, thought their mortgage payment was too expensive, or considered their interest rate too high. Seven percent regretted the type of mortgage they went with.

    Overall, just 8 percent of respondents said they regretted buying a home and wished they were renting instead. The share was higher among the youngest homeowners, with 17 percent feeling this way.

    Zillow said the regrets among younger homeowners are likely due to inexperience with homeownership. The site suggested that most respondents in this group were purchasing their first home, and that their unfamiliarity with the process and homeownership overall makes them more likely to regret the purchase.

    "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 Skylar Olsen, director of economic research at Zillow. "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."

    Homeowners with children were also more likely to have regrets about their purchase. Seventy-nine percent of respondents with children had regrets about their home, compared with 69 percent of those who did not have children.

    However, families were more satisfied with owning a home than renters with children. Ninety-three percent of this group said they had regrets about their property.

    Unexpected maintenance or repairs were the most common complaint among homeowners, with 36 percent overall saying they wished they didn't have to deal with this issue. Twenty-seven percent said they were dismayed by their inability to relocate without first selling their home, while one in four said they were dissatisfied with the home's finishes, layout, or necessary yard work.

    Just 11 percent of homeowners said the home they purchased was too large. By comparison, 21 percent thought they had purchased a home that was too small for their needs.

    Among the renters in the survey, 45 percent said they would prefer to own a home rather than rent. Fifty-two percent said they were dissatisfied with the inability to build up equity in a property, and the same share said they wished they could improve or customize their home. Half of the survey's renters said they thought their rent was too high.

    Younger renters were more likely than older ones to be dismayed by accommodations for pets and parking at their home. Thirty-eight percent of the 18-34 age group said they were unhappy with restrictions on pet ownership at their rental, compared to 21 percent of those ages 55 and older. Forty percent of younger renters said there wasn't enough parking at their home, while 25 percent of older renters felt the same.

    The Zillow Housing Aspirations Report is a semiannual survey looking at expectations on homeownership. The most recent survey polled 10,000 homeowners and renters in 20 large metro areas, and included questions about regrets respondents had about their housing situation.

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