American Home Buyer Report: 2025 Edition

Purchase Price | Buyers' Financial Struggles | First-Time Buyers vs. Repeat Buyers | Priorities vs. Compromises | Buyer Regrets | Buyers Want Do-Overs | Home-Buying Difficulties | What Makes Home Buying Easier | Agent Qualities and Services | Forgoing an Agent | Home-Buying Concessions | Home Features | New Financial Goals

Finding "home sweet home" is still an idyllic dream for many Americans, but recent buyers know the path to homeownership is anything but simple.

Coping with high home prices, elevated mortgage rates, and limited inventory year after year has made buyers more prepared to enter the market, but these perennial problems are taking a toll on house hunters.

About 46% of buyers, including 58% of first-time buyers, say purchasing a home was more stressful than they expected, according to a new Clever study of nearly 1,000 Americans who have bought a home since 2023.  

The heightened stress and urgency to buy a home can cause buyers to assess risks poorly, leading to decisions they may later question. In fact, more than 1 in 4 buyers had second thoughts after their offer was accepted (28%) and eventually felt remorse about their purchase (28%).

Despite these feelings of regret, buyers remain skeptical that market conditions will improve anytime soon, and 87% are happy they purchased their home when they did.

Although the journey to homeownership can be stressful and challenging, buyers don't want to sit on the sidelines forever. Of those who took the leap to become homeowners, almost half say their quality of life (46%) and overall happiness (44%) has improved — even if their finances have not. 

Nearly 1 in 4 buyers (23%) say their overall financial situation has gotten worse since purchasing a home, with 1 in 5 (20%) saying their stress levels have also increased. 

Keep reading to learn how buyers are navigating market challenges to make homeownership a reality.

2 in 3 Buyers Planned to Purchase a Home Under $400,000

High home prices have long made purchasing a home challenging, but with added economic pressure from tariffs and inflation, finding an affordable home is now even more important to many buyers. 

About 62% of buyers in 2025 prioritized finding an affordable home — a significant jump from the 48% who said the same in 2024.

The median home price in the U.S. is $416,900, but many buyers can't afford that. About 64% planned to purchase a home that cost less than $400,000, with buyers targeting a median purchase price of $310,000. 

With a majority of buyers competing for the most affordable homes, the demand often drove up the price — making those budget-friendly options less affordable. 

About 38% of buyers say they exceeded their initial budget when purchasing a home, and 37% think they overpaid. 

It's a particularly common sentiment among first-time buyers, who often have smaller savings, limited budgets, and more conservative loans. About 47% of new buyers exceeded their budget and 42% think they overpaid, compared to 33% and 34% of repeat buyers, respectively.

Buying a home is so expensive, most buyers can't undertake the endeavor alone. About 59% of recent buyers say they purchased their home with someone else, and a whopping 71% share homeowning expenses — even if they are the sole owner.

1 in 4 Recent Buyers Say Their Financial Situation Is Worse Since Purchasing Their Home

Homeownership remains a cornerstone of the American dream, but mortgage payments, property taxes, rising insurance costs, and ongoing maintenance can undermine the benefits if buyers are unprepared for the hidden costs. 

Nearly 1 in 4 home buyers (23%) say their overall financial situation has gotten worse since purchasing a home, compared to only 19% who say it got better.

Financial trouble can take an emotional toll, with 1 in 5 recent home buyers (20%) saying their stress levels have also gotten worse since purchasing a home.

However, with many homeowners expecting home prices and interest rates to potentially rise further, 87% are happy they purchased their home when they did.

Homeownership can be a burden for those who aren't ready to take on the financial responsibility, but it has also led to many positive outcomes for recent buyers.

More than half (53%) say they are more satisfied with their living space, 46% say their overall quality of life has improved, and 44% say their overall happiness has improved. 

What's more, nearly 1 in 3 (29%) say their mental health improved once they were free from the stress of renting and purchasing a home.

New Buyers Are 3x More Likely Than Repeat Buyers to Struggle Paying Their Mortgage

Buyers who end up with more house than they can afford often feel very real economic consequences  — a scenario that tends to affect new buyers more frequently.

While 25% of repeat buyers feel in over their heads financially since purchasing their home, the percentage doubles to 51% among first-time buyers.

First-time buyers may be more prone to these costly mistakes because of their limited home-buying experience, but they aren't the only ones making decisions based on an incomplete understanding of the process.

Nearly 1 in 5 buyers (19%) were surprised by the impact of interest rates, which need to be calculated correctly to determine an affordable monthly mortgage payment.

Consequently, 38% of buyers, including 43% of first-timers, took out a loan with a higher interest rate than they would have liked in order to secure a mortgage. 

It's no surprise, then, that 1 in 6 buyers (16%) say they've struggled to make their mortgage payments on time since purchasing their home, with first-time buyers (27%) three times more likely than repeat buyers (9%) to struggle. 

To make ends meet, 40% of buyers say they've made major lifestyle changes — such as cutting spending and delaying other goals — since purchasing their home. 

With new buyers more likely to stretch themselves financially to secure a home, they may have little left over for emergencies or discretionary spending, prompting significant changes in how they manage their money and lifestyle. New buyers (56%) are nearly 2x more likely than repeat buyers (29%) to make major lifestyle changes after purchasing a home.

Not every buyer, however, is willing to make sacrifices that could impact their standard of living. More than 1 in 5 buyers (21%) have taken on additional debt to maintain their lifestyle since purchasing a home — with new buyers (31%) twice as likely to have taken on more debt than repeat buyers (15%).

Spending More Than Planned Was the Top Compromise Among Buyers

Finding a home that checks every box on a buyer’s wishlist is a tough task to achieve — especially with low inventory in markets across the U.S. With home buyers competing for a limited number of properties, many don't have time to hold out for their dream home. 

Consequently, 82% of home buyers made compromises when purchasing their home.

Although buying an affordable home was a priority for 62% of buyers, snagging a modestly priced home in this market is no small feat, and it was the most-compromised priority among buyers. Of those who said it was important, about 1 in 6 (17%) had to spend more than they planned on their home. 

In a competitive market, buyers may expect to stretch their budgets for a home that includes other features that matter most to them. But beyond price, few house hunters were willing to sacrifice their other priorities. 

Instead of focusing on specific home features, buyers placed more importance on location, such as a good neighborhood (61%), a desirable location (58%), and a safe area with low crime rates (51%). 

These were some of the least-compromised priorities — likely because location and the surrounding area are much more difficult to change than features of a home itself. 

When buyers stuck to their priorities, they were less likely to experience regret. Only 5% of buyers regret the location of their home, and only 3% regret the neighborhood where their home is located. 

Still, 1 in 10 buyers (10%) were surprised by how much they had to compromise on their home purchase.

Nearly 2 in 3 Buyers Have Regrets About Their Purchase

When the cost of compromising on their priorities is greater than expected, buyers are often left with feelings of remorse. In fact, 65% of buyers have regrets about their home purchase. 

The percentage is even higher among first-time buyers, with 73% experiencing regret — suggesting inexperience and limited budgets contribute to a higher rate of dissatisfaction. 

The most common regrets are financial in nature, with 1 in 5 buyers (20%) regretting an interest rate that's too high and 1 in 8 (13%) regretting that they spent too much. 

Although financial regrets are the most common, some buyers wish they were more prepared for unexpected problems with their home. About 30% think the seller was not upfront about aspects of the home, and 44% say they discovered problems after moving in that weren’t previously disclosed. Following a home buying checklist is one way to prevent future regrets.

A home inspection is designed to protect buyers from hidden defects that could lead to costly repairs, but 1 in 8 buyers (12%) regret that the inspection missed problems. To make matters worse, 1 in 12 buyers (8%) regret that they can't afford repairs.

Other regrets include:

• Buying too quickly (11%)
• Buying a home that doesn't meet their needs (11%)
• Settling for a home rather than waiting for a better choice (11%)

Nearly All Buyers Would Change One Aspect of Their Home-Buying Experience

With so many buyers experiencing regret, 94% say they would change at least one aspect of their home-buying experience if they could do it all over again. 

Given that 1 in 9 buyers (11%) regret settling for their home instead of holding out for a better option, it’s no surprise 1 in 5 home shoppers (20%) say they’d be more patient if they had a second chance — making it the most common change buyers would make.

If they had a do-over, buyers would also:

• Save more money before buying (17%)
• Ask more questions (16%)
• Negotiate harder on the price (15%)
• Shop around for better interest rates (14%)

Interestingly, many buyers wouldn't use the opportunity to try to save money on their transaction: 

• 83% wouldn't try to save more money before buying.
• 85% wouldn't try to negotiate more on the price.
• 86% wouldn't shop around for a better interest rate.

In a competitive market, it seems home shoppers may feel pressure to buy quickly if they believe prices and interest rates will rise further — prioritizing speed over savings.

1 in 4 Buyers Thought Home-Buying Was More Difficult Than Expected

Today's home shoppers are better informed and more prepared, with 48% saying the process met their expectations in 2025, compared to 30% in 2024. 

But even with research and preparation, 1 in 4 buyers (28%) still say the process was more difficult than they expected. 

Without prior experience to guide them, first-time buyers were the most unprepared, with 36% saying home buying was more difficult than expected, while just 23% of repeat buyers said the same. 

The shortage of homes in markets across the U.S. was the most common challenge, with 1 in 3 buyers (34%) saying it made purchasing a home more difficult.

Even when buyers found a home they liked, competition from others often caused more difficulties. Nearly 1 in 4 buyers (22%) say competition made purchasing a home harder, and almost 1 in 5 (18%) say the same about rejected offers. 

In fact, half of buyers (50%) had to make two or more offers before one was accepted, while a third (31%) had to make three or more, and a fifth (18%) made four or more.

This cycle of finding homes, making offers, and losing out often repeats several times, forcing shoppers to restart their search and extend the home-buying timeline. 

About 40% of buyers say their search took them three months or more before an offer was accepted, with 1 in 5 saying (19%) it took them six months. 

The home search took longer than 45% of buyers expected, with nearly 1 in 3 (31%) saying the delay added to the difficulty of buying a home.

While market conditions added significant pressure to the home-buying process, buyers also struggled because of economic reasons, such as:

• High interest rates made it more expensive (31%)
• Homes are too expensive (29%)
• Exceeding their budget (28%)
• Unexpected fees and costs (27%)

» Explore these real estate websites to find the best available properties.

Buyers Say a Good Real Estate Agent Makes Purchasing a Home Easier

As home shoppers enter the market with more realistic expectations, fewer buyers are pleasantly surprised by the ease of purchasing a home. Just 24% think buying a home was easier than expected in 2025, compared to 40% in 2024. 

Of those who did find it easier than expected, the most common reason was because they had a good real estate agent (45%).

Although going over budget on a longer-than-expected home search can make the process more difficult, the opposite is also true. About 37% of buyers say the process was easier because they found a home quickly, and 32% say it's because they stayed within their budget.

Other factors that made the home-buying process easier include:

• A closing process that was smooth and on time (42%)
• An easy financing process (29%)
• A responsive seller (29%)
• A home that didn't need any repairs (29%)
• Not having to negotiate (26%)

Buyers Prioritize Market Knowledge Over Commission Cost When Looking for a Real Estate Agent

Even when the home-buying process goes smoothly, unexpected twists may still catch buyers off guard. About 85% of home shoppers were surprised by at least one aspect of purchasing a home. 

The most common surprises include: 

• The amount of paperwork (27%)
• How much it cost (23%)
• How stressful it was (23%)
• Hidden costs (22%)
• How long it took (21%)

When the process doesn't go as planned, buyers tend to rely on their agent's expertise to help them navigate the unexpected challenges. 

Given that the amount of paperwork was the most common surprise — shocking 27% of buyers — it's no wonder document support topped the list of helpful agent services. Half of buyers (50%) say their agent's support was valuable during this step in the home-buying process. 

After paperwork, buyers think agents' most helpful services are:

• Negotiating with sellers (46%)
• Helping buyers find homes (45%)
• Providing referrals to other services (31%)

Buyers often explore their options when looking for agents who have the right skills to fit their needs. But buyers find their agents relatively quickly, with 91% interviewing three or fewer agents before selecting one. 

When choosing whom to hire, buyers are most likely to value:

• Communication and availability (46%)
• Experience in the local market (46%)
• Knowledge of current market conditions (45%)
• Personality fit and compatibility (42%)

Interestingly, only 24% of buyers say the commission rate was an important factor when choosing an agent — indicating many home shoppers may prioritize knowledge and quality of service over cost. 

» Learn how to get a commission rebate when you work with a real estate agent.

1 in 5 Buyers Who Didn't Hire an Agent Say It's Because Commission Is Too Expensive

Although most buyers work with an agent, purchasing a home without one can be a viable option for experienced home shoppers, depending on their situation. 

Buyers decided not to hire a real estate agent because:

• They bought from someone they knew (27%)
• They could handle the purchase themselves (22%)
• Real estate commission is too expensive (21%)
• They wanted more control over the home-buying process (20%)

Although just 24% of recent home buyers say the commission rate was an important factor when selecting an agent, it's an outsized consideration for those who choose to buy a home on their own. 

Traditionally, home sellers paid the buyer's commission fee, but an industry change in 2024 resulted in sellers not being required to pay the buyer's agent's commission. If buyers have to pay their agent the average commission rate of 2.67%, that adds an extra $11,131 in Realtor fees to the transaction of a median-priced home. 

Buyers who forgo an agent may save money on commission, but they miss out on the full range of services agents offer, which can help them save money in other aspects of the transaction. 

For example, 1 in 5 buyers (19%) didn't use an agent because they thought they could negotiate on their own. However, agent-represented buyers (69%) were more likely to get concessions than those who did not have representation (56%).

More Than Half of Buyers Made Concessions During Their Home Purchase

While home prices and interest rates remain stubbornly high, many buyers must rely on concessions from the seller to make home-buying more affordable. 

Luckily for home shoppers, these incentives are becoming more common as desperate sellers seek to lure cost-conscious buyers into the market.  

About 2 in 3 buyers (66%) received a concession from the seller. Of those who received a concession, about 1 in 5 buyers (21%) say the seller reduced the asking price.

Meanwhile, sellers who are hesitant to lower their sale price are using concessions to provide financial relief in other forms. Sellers also offered buyers: 

• A home warranty (20%)
• The ability to keep appliances or furniture (20%)
• Help with closing costs (17%)

Home shoppers may have more negotiating power, but it is still a seller's market, with 58% of buyers also needing to accommodate the seller's terms.

The most common concession among buyers was purchasing the home as-is, with nearly 1 in 4 (24%) agreeing to not ask for repairs. Buyers were also willing to: 

• Offer above asking price (16%)
• Push back their move-in date (15%)
• Waive the inspection contingency (13%)

In the end, buying a home was a give-and-take process, with 46% of buyers making and receiving concessions. Just 12% of buyers only made concessions, while 21% of buyers only received concessions.

About 2 in 3 Buyers Say A Strong Foundation Was Not an Important Consideration in Their Home Search

With a shortage of homes on the market, some buyers are willing to compromise the quality of their home to secure a property. 

Nearly 1 in 4 buyers (22%) purchased a fixer-upper. This was an especially popular strategy among first-time buyers, who typically don't have the funds for a move-in ready property. About 29% of first-time buyers purchased a fixer-upper, compared to 17% of repeat buyers. 

Many buyers recognize the known and unknown problems of buying a fixer-upper, but for those on a budget, finding a home they can afford often matters more than the structural integrity of a property.

Nearly 2 in 3 buyers say it was not important for a home to have a strong foundation (61%) or a new roof (63%). Meanwhile, almost 3 in 4 say up-to-date electrical (72%) and plumbing (70%) systems were not important. 

Although these systems can be expensive to repair or replace, many buyers place a higher value on aesthetics. Buyers were more inclined to say an updated kitchen (33%) was important to them than new plumbing (30%) and electrical wiring (28%). 

Whether they're addressing cosmetic changes or structural repairs on their fixer-upper, the renovation process can take a toll on buyers. If they could do it over again, 1 in 12 buyers (8%) would look for a home that requires fewer repairs.

More Than 1 in 3 Buyers Aim to Rebuild Their Savings After Purchasing a Home

Saving for a home is a major undertaking that often takes years of financial sacrifices — delaying progress toward other important goals. After becoming homeowners, many buyers shift their focus to new financial priorities. 

More than 1 in 3 recent buyers (38%) want to rebuild their savings — making it the most common financial goal after buying a home. Buyers also aim to:

• Put money toward home improvements (30%)
• Pay off remaining non-mortgage debt (29%)
• Build an emergency fund (28%)
• Pay off their mortgage as quickly as possible (27%)

While working toward a secure financial future, buyers also want to enjoy their newfound freedom. About 1 in 3 buyers (31%) prioritize having more money to fund their lifestyle and travels.

Methodology

Clever Real Estate conducted a survey of 986 American adults who bought a home in 2023, 2024, or 2025 and asked them questions about their home-buying experience. The survey was conducted from April 28, 2025, to May 11, 2025.

About Clever

Since 2017, Clever Real Estate has been on a mission to make selling or buying a home easier and more affordable for everyone. Twelve million annual readers rely on Clever's library of educational content and data-driven research to make smarter real estate decisions—and to date, Clever has helped consumers save more than $190 million on realtor fees. Clever's research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more.

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