Gen Zers are willing to buy homes that need repairs. And some of them already regret it.

According to a new report, about 1 in 5 Gen Zers, or 22%, see a lack of affordable housing as a barrier to homeownership. And some believe that renovated housing could be the solution.

A home in need of repair is an existing home that needs varying degrees of maintenance and is typically offered at a low purchase price, according to Redfin.

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

But some who have gone that route are already reconsidering their decisions. At this point, of the 40% of Gen Z homeowners who bought a home that needed repairs, about 27% regretted it, according to the report.

Given the small base of homeowners surveyed, it’s hard to say how feelings of regret over repairs might affect their homes more broadly. But experts say it’s not unusual for buyers of such properties to feel overwhelmed.

“A lot of them are first-time buyers; they don’t really know the true costs of home ownership and how expensive these renovations and repairs can be,” said Jamie Dunaway Sell, data writer at Clever Real Estate.

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Buying a home that needs fixing up can mean savings in the short term, but potential buyers need to consider the cost of renovations as well as the current functionality of the home, said Marine Sargissian, an economist at home improvement and design site Houzz. For example, if your new home doesn’t have a usable bathroom, it could delay your ability to move in.

“Function comes first,” she said. “Everything in your home has to do its job. If it doesn’t, see how much it will cost you to replace it.”

As homeownership becomes more affordable for many Americans, owning a home that needs repairs can mean short-term savings.

According to a report from StorageCafe in May, which analyzed data from its sister division, Point2, the average cost of buying a home that needs repairs is about $283,000. That’s about 29% less than a move-in-ready home, saving buyers about $117,000, StorageCafe found.

“Young buyers are having to bargain because home prices are so high,” said Susan Wachter, a real estate professor and finance professor at the Wharton School of the University of Pennsylvania.

Some Gen Z buyers are even willing to buy homes that need major repairs or have outdated features that pose significant risks. More than half (56%) of Gen Zers in a Clever Real Estate survey said they would buy a home that contained asbestos, a mineral fiber that can increase the risk of lung disease if exposed.

When shopping for homes that need repairs, make sure the home is safe and livable enough not to cause any health and safety problems, Sarkisian explained.

“Make sure there are no toxins in the house,” she said.

It doesn’t take extreme deterioration for home repairs to generate significant repair costs. According to the 2022 American Community Survey by the U.S. Census Bureau, many existing homes in the United States were built decades ago. The survey found that the average age of an owner-owned home in the United States is about 40 years old.

“Homebuyers have to make compromises along the way, and it often has to do with the age or condition of the home,” Jessica Lutz, deputy chief economist for the National Association of Realtors, recently told CNBC.

According to the 2024 Houzz & Home U.S. Home Improvement Study, about 51% of homeowners surveyed spent $25,000 or more on home renovation projects in 2023, up from 44% in 2021. Houzz surveyed 33,830 homeowners ages 18 and older from Jan. 19 to Feb. 27.

While cash from savings is still the most popular way for homeowners to finance renovation projects, at 83%, the use of credit cards has increased, Houzz found. About 37% of homeowners paid for their renovation projects with credit cards, up from 28% who did so in 2022.

If you're considering fixing up an older home, ask the home seller or real estate agent comprehensive questions about the property, such as when the home was built, experts say. If you get to the point of inspecting the home, contact a home inspector who can help you piece together the issues with the home.

Here are five key things to look out for if you're considering buying a home that needs repairs:

Roof: If your roof is leaking, you need to figure out how much it will cost to fix it, Sarkissian said. Roof repairs can be extensive, and you need to consider the damage the leaks could cause inside the home. According to Houzz, the average cost for roof upgrades is around $12,000. Plumbing: Sarkissian said you need to know the condition of your home’s pipes and plumbing, such as where they are, where they go, and when they were last upgraded. According to Short Elliott Hendrickson, Inc., a St. Paul, Minn.-based construction company, older pipes are more likely to crack or break if they were installed before 1980, when cast iron or clay were the typical materials.

Electrical: Find out if the home’s wiring is in good condition and when it was last updated. Older homes often don’t have safety devices like ground-fault circuit breakers. Taking a look at the electrical panel can also give you clues about the home’s wiring system, according to Lippolis Electric Inc., an electrical contractor in Pawling, New York. Houzz found that the average spend on electrical system upgrades rose to $2,000 in 2023 from $1,800 in 2020. “It’s important to understand the total capacity of your electrical because you don’t want to plug in too many things and then cause a power outage for yourself,” Sarkisian said. “That’s also a big consideration.” Walls and Stairs: Make sure your walls are secure, Sarkisian said. If there are cracks in walls and ceilings, uneven floors and difficulty opening and closing doors, that could indicate foundation problems, according to Perma Pier, a foundation repair company in Texas. If there are stairs in the home, make sure they’re safe to walk on, Sarkisian said. The overall terrain: She said it’s important to understand the overall terrain the house is built on. Look for clues that the problems the house is experiencing stem from the surrounding terrain, such as signs that the basement has flooded or cracked. “Would it be a surprise if we had a lot of rain, especially with the weather changes in recent years?”