Five years after a historic boom in home purchases driven by the COVID-19 pandemic, a new wave of home sales is emerging – this time from millennials who say they regret the decision to buy.
Triggered by changing life circumstances, economic pressures and a mismatch between expectations and reality, many of these homeowners are reversing course, according to a new report.
Why It Matters
At the height of the pandemic, historically low mortgage rates and the flexibility of
remote work encouraged millions to enter the housing market quickly.
Millennials, many of whom were first-time buyers, made rapid decisions in competitive markets, often forgoing inspections or long-term planning in favor of securing a home while interest rates hovered around 2 to 3 percent.
Now, that landscape has shifted dramatically. With mortgage rates approaching 7 percent, inflation pushing up the cost of living, and employers rolling back remote work policies, the realities of home ownership have collided with the optimism of early pandemic buying.
What To Know
Roughly 86 percent of millennials who are selling their homes said they made mistakes in terms of buying their home during the pandemic, according to the 2025 First-Time Home Seller Report.
Nearly all of first-time home sellers who were surveyed—91 percent—said those mistakes played a major role in their decision to sell.
In 2020 and 2021, the housing market experienced a surge in demand, driven by a mix of low interest rates, remote work flexibility and people leaving cities.
The median U.S. home price jumped from $289,000 in 2020 to $418,000 by early 2025—an increase of about 45 percent, according to Axios.
A February 2025 survey by Real Estate Witch reported that 56 percent of people who bought homes after 2020 have experienced buyer's remorse. Nearly one-third say their home purchase negatively impacted their finances, due in part to escalating costs for taxes, insurance and repairs.
Homeowners now pay an estimated $24,000 annually on top of their mortgages for the added costs.
Compounding the issue, many millennials who relocated during the pandemic did so assuming remote work would be permanent. With companies increasingly requiring a return to the office, long commutes and the need to relocate again have become significant stressors.
It was found that 23 percent of millennial sellers cited the end of remote work as a key reason for moving.
Although younger and lower-income buyers surged into the market during the pandemic, tight affordability in 2022 and beyond has already started reversing those gains, the Federal Reserve Bank of San Francisco said in its October 2024 research brief.
What People Are Saying
Joel Berner, senior economist at Realtor.com, told Newsweek: "The Covid-19 pandemic offered some prime opportunities for homebuyers, with low listing prices (at least early on) and record-low mortgage rates. Homeownership became a possibility for many, especially younger buyers, when these financial opportunities were combined with newfound lifestyle flexibility in the form of remote work."
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek: "In the spring of 2020, as the world retreated indoors, millennials found themselves scrolling through Zillow listings while working from cramped studio apartments. Then they made the most expensive panic buy of their lives. The trend has been dubbed "pandemic homebuyer's remorse" by real estate analysts."
"But as remote work policies shifted and the reality of suburban life set in, many millennials began questioning their decisions. Long commutes, isolation from friends, and unexpected maintenance costs have turned dream homes into financial and emotional burdens."
Nationwide title and escrow expert Alan Chang told Newsweek: "As remote work policies have changed at many larger companies, there has been a renewed push to move back to major metros where housing costs generally remain high.
"The responsibilities of homeownership are not small and some found it to be more than anticipated. A chance to cash out their equity to relocate has been an easy one for some."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "The pandemic had a 'buy now, think later' aspect to the housing market. Many millennials saw the era as a time to relocate and could do so at more affordable interest rates. It's very possible some were even paying less for a monthly mortgage payment than they were in rent."
What Happens Next
Rather than reinvesting in new homes, many millennials are opting for a pause.
It's reported that 64 percent of first-time home sellers don't plan to buy again immediately. Some are returning to rentals, others to shared living arrangements or simply waiting for better market conditions.
"If it is actually the case that these buyers have such regrets that they will rent their next home instead, which is not a clear conclusion, it could signal some softening in for sale home demand," Berner said.
The idea of a "forever home" may be fading, with more millennials treating homeownership as a flexible financial decision rather than a lifetime commitment. As the housing market adjusts to post-pandemic realities, the experience of these sellers could reshape how the next generation approaches buying a home.
"Now, though, those same purchases may have them feeling locked in, as with higher prices and interest rates, it's been more difficult to sell, expenses involving home ownership have increased, and not being able to easily move may keep them out of the running for new opportunities that require an in-person component. The home ownership equation just isn't working for them," Beene said.
Do you regret buying a home during the pandemic? I want to hear from you. Please email Hennin Foreman at hennin@dhc-realestate.com.