Gen Z is willing to buy a home that needs fixing up. Some are already regretting it.

Nearly one in five, or 22%, of Gen Zers say a lack of affordable first-time homes is an obstacle to homebuying, according to a new report, and some think that homes in need of repair might be a solution to the problem.

As defined by Redfin, homes in need of repair are existing homes that require varying degrees of maintenance work and are typically available at a lower price point.

More than half of Gen Zers surveyed, 57%, said they would be willing to make an offer on a home that needs repairs, according to a new report from Clever Real Estate. The site surveyed 1,000 Gen Z adults ages 18 and older, of whom 126 are homeowners.

But some who chose that path are already reconsidering their decision: Of the 40% of Gen Z homeowners who bought a home in need of repairs, about 27% regret it, the report found.

The number of homeowners surveyed is so small that it’s hard to know how renovation regret plays out on a larger scale, but experts say it’s not uncommon for buyers of such properties to feel overwhelmed.

“Many of these people are first-time homebuyers who don’t really understand the true costs of homeownership and how expensive these renovations and repairs can be,” said Jayme Dunaway Seale, data writer at Clever Real Estate.

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While buying a home that needs fixing up may save you money in the short term, potential buyers need to consider the cost of repairs as well as the home’s current functionality, says Marine Sarkissian, staff economist at Houzz. For example, not having a working bathroom in your new home could delay your move-in.

“Functionality is paramount. Everything in your home has to work,” she says. “If it doesn’t work, think about how much it would cost to replace it.” [it]”

Since homeownership is out of reach for many Americans, a home in need of repairs could provide short-term savings.

A report released in May by Storage Cafe analyzed data from sister unit Point 2 and found that the average price of a home that needs repairs is about $283,000. That’s about 29% cheaper than a move-in ready home, saving buyers about $117,000, Storage Cafe noted.

“Housing prices are soaring, younger buyers are being forced to make compromises,” said Susan Wachter, a professor of real estate and finance at the Wharton School of the University of Pennsylvania.

Some Gen Z buyers are willing to take on big risks, buying homes that are in bad shape or need repairs with outdated features: Clever Real Estate surveyed found that more than half of Gen Zers, 56%, would buy a home that contains asbestos, a mineral fiber that can increase the risk of developing lung diseases if exposed.

When searching for a home that needs repairs, make sure it’s safe and livable enough that it won’t pose health or safety hazards, Sarkisian explained.

“Make sure there are no toxins in your home,” she said.

A home in need of repairs doesn’t need to be in severe disrepair to generate significant repair costs. Many existing homes in the U.S. were built decades ago, according to the U.S. Census Bureau’s 2022 American Community Survey. The survey found that the average age of homes occupied by U.S. homeowners is about 40 years old.

“Homebuyers have to make compromises along the way, and often it’s the age and condition of the home,” Jessica Lautz, deputy chief economist at the National Association of Realtors, recently told CNBC.

According to the 2024 U.S. Houzz & Home Survey, about 51% of homeowners surveyed will spend more than $25,000 on home improvement projects in 2023, up from 44% in 2021. Houzz conducted the survey between Jan. 19 and Feb. 27 among 33,830 homeowners ages 18 and older.

While cash from savings (83%) remains the most common way homeowners fund renovation projects, the use of credit cards is on the rise, the Houzz survey found. About 37% of homeowners have paid for a renovation project with a credit card, up from 28% in 2022.

Experts say if you’re considering buying a home that needs repairs, you should thoroughly question the seller and real estate agent about the property, including when it was built. Once you’ve made it to the home inspection process, hire a home inspector to help you outline the home’s issues.

If you’re considering buying a home that needs repairs, here are five important things to look out for.

Roof: If your roof has a leak, Sarkisian says you’ll need to calculate how much it will cost to repair. Roof repairs can be expensive, and you’ll need to consider any damage the leak has caused inside your home. The average cost of a roof renovation is around $12,000, according to Houzz. Plumbing: Examine the condition of your home’s plumbing and piping, including where they are located, where they connect, and when they were last renovated, Sarkisian says. Older pipes installed before 1980, when cast iron and clay were common materials, are more likely to break or crack, according to Short, Elliott & Hendrickson, a St. Paul, Minnesota-based construction company.

Electricity: Find out if your home’s wiring is in good condition and when it was last updated. Older homes often lack safety devices such as ground fault circuit interrupters. Looking at the electrical panel can also give clues about your home’s wiring system, according to Lippolis Electric Inc., an electrical contractor in Pawling, New York. The average spend on upgrading an electrical system rose from $1,800 in 2020 to $2,000 in 2023, according to a Houzz survey. “It’s important to know your overall electrical capacity, because you don’t want to plug in too much and cause a blackout,” Sargsyan says. “That’s also a big consideration.” Walls and Stairs: Make sure your walls are secure, Sargsyan says. Cracks in walls or ceilings, uneven floors or doors that are difficult to open and close can indicate underlying issues, according to Perma Pier, a foundation repair company in Texas. And if you have stairs in your home, make sure they’re safe to walk on, Sargsyan says. The whole property: Understand the whole property the home is built on, she says. Look for evidence that the home’s problems are coming from the surrounding property, like signs of a flooded or cracked basement. “Especially with how the weather has changed in recent years, what kind of surprises would happen if we had too much rain?” she says.