many first-time buyers are underprepared for the long-term impact and find themselves financially stretched from day one.”

For financial advisors, the findings highlight a growing disconnect between the aspiration of homeownership and the reality of its financial toll— especially for younger, first-time buyers navigating an unforgiving interest rate environment.

Financial Regret Is The New Norm

The emotional high of homeownership is fading quickly for many, according to the report. Nearly two-thirds of buyers( 65 %) expressed regrets about their purchase— most of them financial:

• Twenty percent regret locking in a high interest rate, a major pain point given that current rates remain well above pandemic-era lows.

• Thirteen percent said they overspent.

• Thirty-eight percent accepted a higher mortgage rate than they were comfortable with, and 17 % exceeded their initial budget.

Buyers aimed low, with 64 % targeting homes under $ 400,000 and a median target price of $ 310,000— far below the U. S. median purchase price of $ 416,900 for houses sold in the United States( according to the Federal Reserve). Still, competition forced many to compromise, which drove overspending and led to financial regret.

First-Time Buyers Face The Biggest Strain While owning a home remains a major financial milestone, it’ s becoming increasingly burdensome for first-time buyers. According to the report, 51 % of first-time purchasers said they feel they’ re in over their heads financially— twice the rate of repeat buyers( 25 %).

“ This is the most debt-intensive transaction many people will ever make,” Clever’ s researchers noted.“ In today’ s high-rate climate,

Rising Foreclosures Add to the Pressure

The financial stress isn’ t just theoretical— it’ s showing up in foreclosure data. In the first quarter of 2025, 91,953 housing units received foreclosure filings— a 9 % increase from a year earlier, according to foreclosure numbers from Attom, a collector of land and property data. After three quarters of decline, this marks the first notable uptick. High interest rates and inflation have made refinancing out of risky loans difficult. And economic instability is worsening the situation. In 2025, job market fluctuations and employment instability have hit homeowners hard— particularly in states with the highest foreclosure rates, such as Delaware, Illinois and Connecticut. Delaware led the nation in January with one foreclosure filing per 1,839 housing units.

What Advisors Should Watch

Even though demand for homeownership remains strong, especially among millennials and Gen Z, many buyers are discovering too late that the true cost of ownership is higher than expected.

Advisors can play a pivotal role in helping clients avoid falling into the regret trap in the future.

Some 82 % of buyers report they made compromises during the purchase process, and a staggering 94 % said they’ d change something if given a do-over. As a result, advisors can play a pivotal role in helping clients avoid falling into the regret trap in the future. It will give first-time buyers a critical reality check, said Clever, if advisors discuss home-buying decisions with them. Advisors should run mortgage scenarios. They should also stress-test different rate and price combinations. They should help clients look beyond the monthly home payments at things like taxes, insurance and maintenance. And they should help clients understand the lifestyle and retirement planning trade-offs.

— Tracey Longo

JULY / AUGUST 2025 | FINANCIAL ADVISOR MAGAZINE | 11