Americans are constantly being pressured to overspend, including on homes, according to a new survey. The recent Bankrate [1] “peer pressure” survey found that around 12% of Americans believe they felt pressured to overspend on their home.
Much of this desire to overspend comes from friends and family, with Bankrate reporting that 37% of respondents felt that pressure from their friends were the biggest cause of overspending, next to pressure from spouses or significant others (30%) and extended family (25%)
Bankrate’s survey covered more than homes. According to the survey, many Americans have also felt pressure to overspend on material items and social activities, more than on homes. However, Bankrate notes that the risk of debt is a big enough reason to keep many people from overspending. The survey found that 25% of respondents admit to charging something to a credit card that they couldn’t afford in order to look successful to others, while 75% have not.
Millennials, the report states, are the most likely to overspend, over older generations, (64% versus 40%), and are more influenced by pressure from friends.
Millennial and Generation Z homeowners reportedly have more homebuyer regrets than older homebuyers as well, according to a recent survey from Freedom Debt Relief [2]. The survey found that 58% of millennial homeowners say their mortgage payment is too high, compared to 52% for Generation X homeowners.
The survey examined just how much homebuyers regretted how much they spent or are spending on their home. Of the 1,028 homeowners
surveyed, 26% said the cost of owning a home is a burden and they’d rather rent. However, 59% of homeowners still feel that owning a home is part of the American dream.
Additionally, 12% of those surveyed have buyers remorse, 12% have missed a mortgage payment is the last decade, and just 28% felt financially secure after purchasing a home.
Respondents also said that emergency fixes (57%) and maintenance costs (51%) were the biggest hidden costs of homeownership. Fifty-four percent of millennial said they don’t know how much they spend on their house annually.