5 Compromises People Make To Afford a Home — Are They Worth It?

In June, Redfin reported that the median U.S. home price reached a record high of $396,500.

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Longer Commutes Buying a Fixer-Upper Buying Too Small Raided Savings Forgoing All Discretionary Spending

Meanwhile, homebuyers are paying more than double the interest rates that they paid just a few years ago. Fixed-rate 30-year mortgages continue hovering near 7%, according to Freddie Mac. That one-two punch creates an unaffordable housing market for first-time buyers — which sets the stage for compromises and regret.

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So how can buyers know which compromises are worth making and which will burn them with buyer’s remorse?

Longer Commutes

According to a 2025 survey by Clever Real Estate, 30% of buyers listed a “good commute” as a priority. Of those, 25% didn’t compromise and the other 5% did.

“On paper, driving an extra 45 minutes each way may feel like a fair tradeoff for a lower mortgage or a bigger yard,” said Mark Sanchez, senior real estate manager at Gator Rated. “It rarely feels that way after six months. This often chips away at quality of life, happiness and time with family.”

How to decide: Driving a few extra minutes can be worth it to buy a house that ticks every other box. But when you start adding a half-hour or more to your roundtrip daily commute, think twice.

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Buying a Fixer-Upper

Buying a fixer-upper can help you score a better deal. Or it can leave you spending more to renovate than you would have spent for a move-in ready home.

The Clever report found that 33% of buyers prioritized finding a home with no renovations needed, and of those, 5% compromised. “Updating a fixer-upper could be worth the time and effort at the right price,” explained Cameron Walker of Clever. “But projects on a larger scale can easily feel out of control and can be more expensive than expected, often defeating the purpose of their initial cost-effectiveness.”

How to decide: Stick with cosmetic updates that you can make at your own pace. Avoid homes with structural problems or major mechanical system issues.

Buying Too Small

On the one hand, buying too much house can cost you beyond the initial purchase price. Utilities, maintenance and repairs will all cost more — forever.

Even so, you don’t want to buy a house that can’t support your needs within a few years. For example, if you’re planning to grow your family, you’ll likely need more than a one- or two-bedroom condo. The Clever survey revealed that 28% of buyers prioritized a large home, and 5% compromised.

Bar Zakheim serves as the CEO of Better Place Design & Build, which specializes in home additions and accessory dwelling units. “Especially in high-priced areas, buyers often spring for any house they can find, even if it’s smaller than they need. Then they have to hire people like us to expand their home,” he said.

How to decide: Forecast your needs in four years from now. Does the prospective house still suit them? If not, keep hunting for the right house.

Raided Savings

Sure, homeownership can help grow your wealth in the long-term. But beware of sacrificing your other savings and investments just to eke your way into a home.

“Many first-time buyers dip into their emergency fund or 401(k) to cover a down payment,” said financial planner Melissa Murphy Pavone of Mindful Financial Partners. “This might seem like a short-term fix, but it can derail long-term financial security. Retirement withdrawals come with taxes and penalties, and skipping emergency savings puts homeowners at risk when — not if — unexpected expenses arise.”

How to decide: Leave yourself at least a couple of months’ worth of expenses in emergency savings, and don’t make any retirement withdrawals that hit you with penalties.

Forgoing All Discretionary Spending

Yes, you can tighten your belt and skip the lattes and lunches out at work. But that doesn’t mean you should make yourself so house-poor that you can’t travel at all or enjoy the occasional small luxury.

Melanie Musson, finance expert at Clearsurance.com, sees this all the time among first-time homebuyers. “They often can’t afford to go on vacation or meet up with friends. They may have to give up their weekends and take on a side job,” she said.

How to decide: A short-term savings sprint is usually worth it to achieve your homebuying goal. But if it requires you to commit to years of scrimping with no discretionary budget, expect to feel stuck, unable to ever leave that home you stretched yourself too thin to buy.

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