Nearly a third of homeowners say they are ‘house poor’ in new survey
FILE-A for sale sign hangs in front of a home on August 22, 2023 in San Mateo County, California. (Photo by Liu Guanguan/China News Service/VCG via Getty Images)
Homeownership is a major life achievement. And while the allure of owning a home is exciting, some homeowners are feeling the financial strain of having one.
Nearly 1 in 3 homeowners consider themselves "house poor" based on a recent survey released by Lance Surety Bonds, a Pennsylvania-based surety bond agency that offers bonding in all 50 states.
"House poor" homeowners stated in the report that their housing expenses deplete a sizable portion of their income, a circumstance that was bleak for some, with 1 in 8 homeowners using more than 50% of their income to cover their mortgage. This was also common for 22% of homeowners who identify as "house poor."
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The survey noted that "house poor" homeowners are spending an average of 32% of their monthly income on mortgage payments and an extra 14% on utility expenses, which limits the amount of money available to pay for other expenses or allocate for savings. And another 27% of homeowners say they live paycheck to paycheck because of their housing.
Meanwhile, the financial struggles of homeownership hit younger generations more, with 70% of millennials and 67% of Gen Z Americans admitting that they struggle to save or invest for the future because of the inflated costs of owning a home.
Respondents also shared their experiences related to financial setbacks of homeownership with 32% saying that buying a home negatively affected their financial situation. Approximately 64% of homeowners noted that growing housing expenses had added to their worries.
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Rising costs of owning a home have led some homeowners to avoid making repairs to their homes with 46% of homeowners sharing that they are unable to afford necessary repairs and upgrades to their homes. To manage the financial strain, 40% of homeowners say they have side jobs to earn extra cash.
The daunting task of managing home expenses has resulted in some homeowners making serious life sacrifices with 22% of homeowners saying they have skipped other bill payments to cover housing costs, while 14% said they are sacrificing medical care, and another 18% admitted that they are unable to afford groceries after paying for their home expenses.
Additionally, the financial pressures of owning a home have led some people to question their decision to buy a house with 1 in 16 homeowners admitting a desire to return to renting, citing the monetary burden of homeownership as the main reason.
To collect their data for the report, Lance Surety Bonds surveyed 1,009 homeowners about their individual experiences, budget limitations, and sacrifices. Among them, 32% identified as "house poor" and 68% as "not house poor." This survey was conducted on August 1, 2024.