Gen Z homeowners are regretting their home purchases at a far higher clip than their millennial counterparts, according to a new study.

Nearly half, 42 percent, of Gen Z homeowners said they regretted their purchase in a 1,000-person survey conducted by home insurance company Kin. That was 27 percent higher than both millennials and Gen X.

Why It Matters

The American dream of homeownership faces a generational crisis as Gen Z buyers grapple with heightened regret and financial strain.

A new wave of first-time buyers, facing record-high home prices and mortgage rates, reported historic rates of buyer’s remorse, raising urgent questions about the affordability and accessibility of housing for future generations.

What To Know

The generational divide in homeowner satisfaction has widened substantially, and many young buyers are feeling the regret.

More than 40 percent of Gen Z homeowners regret purchasing their home, according to Kin Insurance’s 2025 Generational Homeownership Survey, mainly due to the overwhelming cost of mortgages and unforeseen expenses.

A much higher level of regret was reported by a survey from Open Door, which found that 94 percent of Gen Z and 86 percent of millennial first-time home sellers regretted buying a home and decided to part with it. Many underestimated expenses like maintenance and insurance, which were not always factored into initial budgets.

“Purchasing a home is likely the largest financial decision in the average person’s lifetime,” nationwide title and escrow expert Alan Chang told Newsweek. “With this milestone, there are many factors to consider that some may not have fully contemplated in a sellers market.”

Housing costs have continued to rise, with home prices and mortgage rates near record highs.

The median sale price hit $420,000 in late 2024, and 30-year fixed mortgage rates climbed back above 7 percent this year.

Due to these heightened costs, a shift toward older first-time homebuyers is underway, with the median age now 38, up from 29 in the 1980s, according to the National Association of Realtors. The number of first-time buyers also fell to just 1.14 million in 2024, from 3.2 million in 2004.

Of those who actually enter the housing market, many younger buyers are purchasing fixer-upper homes to save costs, often underestimating the time and money required for repairs. This approach has led to significant regret among new homeowners, especially those with limited resources.

In the Kin Insurance survey, 39 percent of all homeowners said they spend at least one-third of their income on housing costs. And over half did not account for home insurance costs in their initial budgets, particularly in high-risk areas where insurance rates are well above the national average.

“A lot of people look at the price of a home and think only about the mortgage payment. But it’s never just the mortgage,” Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast, told Newsweek.

“You have property taxes, PMI, HOA dues, and insurance, which seems to only go one way: up. Then there’s the cost of actually living in the place, filling empty rooms with furniture, buying appliances like a washer and dryer, and covering all the other odds and ends that come with homeownership.”

What People Are Saying

Thompson also told Newsweek: “Older generations faced higher interest rates, but they were paying those rates on far lower home values. The bigger picture here is that more people—especially younger buyers—may end up renting. And while rents can be just as high, if not higher, than a mortgage, renters avoid the headaches of property taxes, maintenance, and major repairs, although those costs are baked into the rent.”

Chang also told Newsweek: “Up until recently, the market favored sellers which meant that buyers were waiving contingencies and making quicker decisions in order to not miss out on a home with competing offers. In some instances, buyers skipped inspections or didn’t fully consider the full cost of homeownership.”

Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “While it’s difficult being “house poor” at any age, for Gen Z, it can create some real hurdles. Most in the generation who regret their home purchase cite mortgage costs as the leading reason, and it’s easy to see why. Even if they were able to lock in a lower interest rate in prior years, they’re still paying a high amount for the property itself, especially at a time in their lives when most Americans would rather be allocating those funds to other items or experiences.”

What Happens Next

Housing affordability is not expected to improve significantly for young buyers in the near term. Persistently high mortgage rates, limited inventory and stagnant wages continue to discourage Gen Z and millennials from entering or upgrading in the market.

Real estate professionals recommend young Americans begin financial planning early, seek available grants and programs for first-time buyers and carefully consider whether buying, renting or co-living is the best option for their circumstances.

“The long-term risk is fewer individual homeowners, more corporate-owned housing, and a rental-heavy market unless the government steps in to slow that trend,” Thompson said.