Buying a home is a costly endeavor, with many buyers—especially millennials—feeling unprepared for the expenses beyond the down payment. A recent study by Clever Real Estate reveals that the average homebuyer spends nearly $32,000 on home-buying costs, including repairs, renovations, and closing fees.

The study from Clever Real Estate highlights the expenses that can surprise homebuyers:

• Average Expenses: Buyers spend an average of $32,000 on home-related expenses.

• Breakdown: This includes around $13,498 for repairs and renovations, along with moving costs, private mortgage insurance, and closing costs.

Nearly half of the buyers surveyed (48%) reported feeling surprised by these expenses. Among 1,000 survey participants, 39% said costs exceeded their budget, and 38% mentioned that these expenses would significantly impact their savings.

Millennials were the most surprised by the high costs, with 63% expressing shock. Gen Z buyers also felt the financial strain, with 49% stating that expenses exceeded their budget. By comparison, only 31% of boomers reported going over budget.

The survey, conducted on September 26-27, included responses from recent homebuyers.

Many homebuyers in the study acknowledged they compromised on their budget, with some stating they felt they overpaid for their homes. Despite this, nearly 34% of buyers reported paying below the asking price, a rise from 27% in 2022.

Clever's report notes that future expenses for buyers could increase further, partly due to changes in commission requirements:

“Buyers could incur an additional $12,944 in commission costs on the average home if sellers opt not to pay the buyer’s agent commission following the National Association of Realtors settlement in August,” Clever reported.

The study notes that, as of 2024, 66% of buyers with agents had their commission covered by sellers—a benefit that may not be available in the future.

The unaffordable housing market, high interest rates, and additional costs have caught the attention of politicians. With President Trump’s re-election, there is potential for policy changes aimed at addressing housing supply and affordability.

Proposals include opening more federal land for housing, reducing regulations to ease construction, and addressing housing price inflation by stabilizing interest rates. However, critics question how these measures will align with other campaign promises, such as tax cuts and tariffs.

• The average homebuyer spends approximately $32,000 on expenses beyond the down payment.

• Millennials are the most surprised by these costs, with 63% expressing shock.

• Policy changes under the current administration may influence future housing market dynamics.