About Half Of Homeowners Have Regrets About Buying Their Current Home, 'Affordability Issues Rank High On The List Of Regrets'

It may be a buyer's market right now, but a survey by Bankrate found that 42% of homeowners have regrets about purchasing their current homes. 

The most common regret is not being aware of how much maintenance and other hidden costs would amount to. Bankrate's Hidden Costs of Homeownership Study found that the average cost associated with owning a home in the U.S. is $21,400 per year. That cost has risen over the last five years as inflation and interest rates have increased, and the market has gotten more competitive.

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Other regrets for homeowners include buying too small or too large a home, overpaying, choosing a bad location, having mortgage rates and mortgage payments that are too high, and not thinking that purchasing a home was a good investment.

"For most folks, buying a home is the most expensive transaction of their lifetime," Bankrate Senior Economic Analyst Mark Hamrick said. "After the purchase is complete, we find that affordability issues rank high on the list of regrets. While homeownership is still associated with the proverbial American dream, it is prudent to consider and plan for the many ongoing costs of ownership, not just getting over the threshold of the down payment and settlement."

Despite these regrets, 70% of those surveyed said they would repurchase their current home if they had to do it all over again. Meanwhile, 17% said they would not repurchase, and 13% were unsure if they'd make the same decision.

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Additionally, Bankrate found that home ownership is still a major part of the American Dream for many people. Some 82% of adults say that owning a home is a key part of the American Dream, more so than the ability to retire or have a successful career. Gen Xers and Baby Boomers, in particular, feel that home ownership is a marker of success.

"Americans consider homeownership to be the cornerstone of the American Dream, more so than anything else," says Bankrate Chief Financial Analyst Greg McBride. "This belief hasn't wavered and has only gotten stronger despite increasing affordability challenges with a record high percentage of Americans, 82%, citing homeownership as part of the American Dream."

The primary reason people cite for wanting to own a home but not being able to do so is affordability. 

"With household budgets already strained from elevated inflation and so many Americans living paycheck to paycheck, it comes as no surprise that aspiring homeowners point to insufficient income, high home prices and being unable to afford the down payment and closing costs as the major obstacles to homeownership," McBride says. Those hidden fees and maintenance costs only add to the problem. 

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