When Sandy Lachhman and Shaun Parmassar began searching for a home on Long Island in early 2022, the process felt like a countdown they were racing to beat. Mortgage rates were rising from historic lows, and listings seemed to vanish as quickly as they appeared. Both had recently stepped into new careers — she in hospital operations and he in cybersecurity — and they were determined to secure a property before conditions shifted further.

After spending nearly every weekend for months touring available homes, the couple finally purchased a two-bedroom, two-bath property with a pool. Their offer of about $660,000 exceeded the asking price by roughly $30,000, but they locked in a 4 percent mortgage rate. For Lachhman, the timing felt fortuitous.

“The market during the pandemic gave millennials like me an opening to buy,” she said. “It feels like it would be much harder to do that now.”

Their monthly payment of about $5,000 has remained steady, allowing the couple to save and enjoy life. But the reality of their day-to-day has shifted dramatically. They now have a Labrador retriever, a toddler, and another child on the way — and the once-spacious home suddenly feels cramped.

Lachhman and Parmassar represent a growing share of Americans who purchased homes during the pandemic: financially secure on paper, yet physically constrained and uncertain about their next step.

A Window of Opportunity — and Its Aftermath

When the pandemic halted daily life, mortgage rates fell to unprecedented lows, creating what many viewed as the perfect moment to buy a home. Americans acted quickly, often pooling savings with partners, friends, or siblings to take advantage of the environment. According to Freddie Mac, the 30-year fixed mortgage rate fell below 3 percent for the first time ever and reached a record low of 2.65 percent in early 2021.

For those who locked in these rates, the outcome was exceptional. Stephanie Williams, a senior wealth adviser at AlphaCore Wealth Advisory, described sub-3 percent borrowers as “a rarity, something we may not see again for a long time.”

A 2023 survey from Realtor.com and HarrisX found that 82 percent of homeowners felt “locked in” by their low mortgage rate, and more than half were waiting for more favorable market conditions before making a move.

Years later, that once-in-a-lifetime opportunity has created an unusual tension. Many pandemic buyers now find themselves torn between the desire for more space or a different location and the reality of today’s financial landscape.

“People bought what they viewed as a first step toward a dream home,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “With higher interest rates and limited inventory, that starter home is turning into a long-term residence, leaving many feeling stuck.”

Recent surveys from Intuit Credit Karma reveal that nearly one in four homeowners has some regret about their purchase. Among millennials, that figure is even higher — with many saying they underestimated the real costs of homeownership or have postponed other life goals. Factor in rising expenses and major life changes, and what once felt like stability can start to resemble a constraint.

According to Realtor.com senior economist Jake Krimmel, many owners simply cannot rationalize giving up a 3 percent mortgage for one that could be twice as expensive. And uncertainty over whether to rent, sell, or stay put is being amplified by President Trump’s recent proposal promoting a 50-year mortgage as a tool for affordability, adding further hesitation for homeowners reluctant to sacrifice their low-rate 30-year loans.

When a Starter Home Becomes a Permanent Residence

In the suburbs of Phoenix, Amber McDorman and her husband experienced their own version of pandemic-era good fortune. After repeatedly losing bidding wars and watching prices climb week to week, the couple finally secured a three-bedroom home in 2020 when mortgage rates dipped below 3 percent. They purchased their home for about $260,000 with a 2.5 percent interest rate. Five years later, they still pay only $1,300 per month, and their home equity has risen by roughly 65 percent.

At the time, the home easily accommodated the two of them and their one child. But their family has grown, and both now work primarily from home, often sharing the same office. An extra bedroom or workspace would make a significant difference, but the idea of giving up their rate — or spending up to $50,000 on an addition — feels daunting.

“I feel like we’re fortunate compared to many others,” said McDorman, a social worker. “But we never imagined this would be our forever home.”

The High Cost of Upsizing

Not every homeowner has remained in place. Some, like Lissette Debord, decided to move despite the financial drawbacks.

Debord and her husband purchased their first house in Sussex County, New Jersey, in 2020 at the age of 21. During her final semester of college, they redirected savings they had set aside from holding a virtual Zoom wedding toward a down payment. They secured a 2.7 percent mortgage on a two-bedroom home priced at $250,000.

The experience of living through the pandemic prompted them to rethink what mattered most.

“Is the goal to invest in one day,” Debord said, “or to invest in something that supports our long-term future?”

Last year, after the birth of their first child, the couple moved to a larger home in Jefferson, New Jersey. The trade-off was significant: their mortgage rate jumped to 6.6 percent, and their payment more than doubled.

Now expecting a second child, the family has had to dramatically adjust their lifestyle. Outings, vacations, and discretionary spending have all been reduced, and household budgeting has become far more rigid.

“We took a chance,” she said. “And this is where we are now.”

Holding On Through Hard Times

For some homeowners, the story is not about outgrowing a space but about holding on to it through hardship. Ja’nise Johnson bought her four-bedroom home in Tampa, Florida, in 2019 at a roughly 3 percent interest rate. When the pandemic hit the following year, she was furloughed from her longtime insurance job. As a single mother of three boys, keeping up with mortgage payments became a constant struggle.

She fell behind within the first year, relying on friends, family, and gig work — including delivering for DoorDash — to cover expenses. But giving up the home didn’t feel like an option. It represented stability for her children.

Last year, she refinanced at a higher 5.3 percent rate because she was behind on payments, pushing her monthly cost from $1,700 to $2,800. Although she now works as a project manager at a financial services firm, the increased payment has limited her ability to move or save.

Still, Johnson says her deepest regret is not the strain of keeping the house. It is that she didn’t buy even earlier.

“I probably would have paid it off by now,” she said. “At this point, I don’t know how long it will take.”