More Than Half of Post-Pandemic Homebuyers Have Felt Buyer’s Remorse

Audio By Carbonatix

Despite the rising costs of nearly everything following the COVID-19 pandemic, home ownership remains a dream for most adults. However, that dream comes at a price many buyers forget to consider. A new Real Estate Witch survey finds that 56% of those who purchased a home after 2020 have felt buyer’s remorse.

While most buyers focus on the monthly mortgage payments, they often forget the other regular expenses of owning and maintaining a home. These additional costs can add tens of thousands of dollars to an annual home budget.

Those who purchased homes in 2020 or later especially feel the pinch as inflation and mortgage rates tick progressively higher. Nearly a third of these buyers say their home purchase has negatively affected their finances.

Homebuyers must look beyond the monthly mortgage payment when preparing their budgets to keep their expectations in check.

“A lot of homeowners are caught off guard by the ongoing costs of owning a home, like maintenance, repairs, rising property taxes, and seasonal utility bills,” said Sergio Aguinaga, founder of Michigan Houses For Cash.

On average, Real Estate Witch found that homeowners pay more than $24,000 a year in addition to their mortgages — an extra $2,000 monthly. Homeowners’ association (HOA) fees can add about $3,000 more annually.

Utilities tend to be the greatest expense. Sewer, water, gas, internet and cable, electricity, and phone bills add about $610 a month or $7,320 a year. Maintenance costs average just over $500 monthly ($6,000 annually), and renovations are approximately $480 monthly ($5,760 annually).

Property taxes vary by state, but the average annual amount paid is about $3,000. Homeowners’ insurance, which also depends on where you live and the size of your home, averages $2,300 yearly.

Today’s homebuyers face a very different market than those who bought before the pandemic. Before 2020, median home prices peaked at $337,900 in 2017. They began rising in the third quarter of 2020, topping $442,600 by the end of 2022. As of December 2024, the median home price was $427,179. Despite the dip, it’s still 35% higher than 2020’s most affordable average home price of $317,100.

One positive change is that buyers now have more control over the amount they pay in real estate agent commission fees. A recent settlement with the National Association of Realtors® means sellers are no longer obligated to cover buyer agent fees. Rather than paying the standard 2.58%, buyers can negotiate lower fees directly with their agents. Even dropping the cost to 1.5% could save buyers about $4,000 on a $400,000 home.

High mortgage rates are another challenge. Although rates dropped well below 3.0% in 2020, they rose steadily throughout 2022. For the last few months, they’ve hovered between 6% and 7%, meaning buyers will pay more for a more expensive home.

Say you purchased a $400,000 home in early November 2018, when rates peaked at 4.94%. With a 20% downpayment, your monthly mortgage payment would be $1,964. Today, the mortgage on that same home would be $2,379 a month, with a rate of 6.96%.

Homeowners’ insurance has also increased sharply over the years. In 2019, the annual rate was $1,272 or $106 a month. The national average for 2025 is $2,181 annually or about $182 monthly — a 71.6% increase.

“The trend denotes an increased economic burden faced by homebuyers,” said Alexei Morgado, a Florida real estate agent and the founder of Lexawise. “It may also be caused by increased cases of natural catastrophes that have caused insurance companies to raise their charges.”

Severe weather is only one reason for the increase. According to Redfin, more people moved into disaster-prone areas during the COVID-19 pandemic than out, leading to more claims during floods, storms, and wildfires. In addition, a 28% rise in construction costs since 2020 has made repairs more expensive.

The Real Estate Witch survey also found that about a third of post-2020 buyers felt they overpaid for their homes, while only 10% of those who bought before 2020 said the same. Experts say this is a lesson for today’s buyers to do their research and factor in additional homeownership costs before purchasing.

“The routine maintenance alone, including HVAC servicing, roof inspections, and lawn care, tends to add up quickly,” Morgado said. “Unexpected repairs, like replacing a leaky roof or a broken water heater, may strain the budget.”

Monthly mortgage payments are easy to budget for because they’re locked in. However, owners should expect property taxes and homeowners’ insurance to increase annually and plan accordingly.

Rising home prices tend to drive up property taxes, even when rates stay steady. Improvements that add value to your property can also increase your taxes, as can changes in government policies. Nationally, annual property taxes have risen 27.4% since 2019, from about $2,400 to just over $3,000. While the actual amount varies by state, property taxes rose 5.1% in 2024 and 4.1% in 2023.

Homeowners insurance typically increases about 5% each year, although premiums jumped 6.9% in the first half of 2024 and 12% in 2023. Some insurers predict rate increases of 10%–15% or more in 2025 as the risk of natural disasters continues to rise.

Your home’s location, age, and square footage will determine how much you pay. Nebraska, Florida, and Oklahoma tend to see the most expensive rates, while Vermont, Alaska, and Delaware typically have the lowest rates.

A budget that accounts for the actual cost of ownership — not just the mortgage payment — is critical. If possible, set aside an extra $150 to $200 to account for a 5% increase in property taxes.

Also, try to improve your credit score before you purchase a home. Those with poor credit pay 77% more for home insurance than those with excellent credit.

Get a home inspection to reduce the amount of unexpected maintenance on your property. Adam Hamilton, CEO of REI Hub, said this is one step in the buying process homeowners skipped post-2020 as the market grew competitive.

“Not only were prices higher than ever, but the supply and demand ratio was as stark as ever, so prospective buyers kept finding themselves in competition with one another — even for homes that weren’t all that great,” he said. “Forgoing a home inspection may help you beat the competition, but it may also mean that you end up encountering a lot more maintenance and repairs that you then become financially responsible for.”

House hacking is another creative option for potential buyers. Instead of purchasing a single-family home, they can look for a duplex, triplex, or quadplex, then live in one unit while renting out the others. This way, they can enjoy the benefits of homeownership while subsidizing their mortgage payments and other expenses through tenants’ rent.

“With an FHA loan, a home buyer could get in for as little as 3.5% down, meaning they don’t have to save up much for the down payment,” said Holden Andrews, founder of Helpful Home Group. “You can instead use that money toward renovating the units like updating carpet, paint, or things like that to maximize rents and cash flow.”

Finally, ask your real estate agent if they offer home buyer rebates. They’re available in 42 states and could save hundreds or even thousands of dollars. Some programs give refunds as a closing cost credit, while others will cut you a check. You can then put this money toward those additional homeownership costs.