Majority of Homeowners Consider Themselves House Poor
Homeownership is becoming more expensive, with mortgage payments eating up a considerable portion of the average household’s monthly income. According to a recent survey from online lending platform LendingTree, half of mortgage holders have seen their monthly payments rise over the past two years, and 59% of households consider themselves house poor because of these increases.
Young homeowners are especially feeling the financial burden
While more than half of all surveyed households say they’re house poor, the sentiment is especially strong among the youngest homeowners. Compared with just 49% of Gen Xers and 41% of Baby Boomers, 73% of Gen Zers and 67% of Millennials say they’re house poor.
Additionally, 81% of Gen Z mortgage holders and 59% of Millennials say they’ve missed a full payment at least once in the past year.
These age groups might be at greater risk because they’re not making as much money and don’t have as strong credit as their older counterparts. ... Lower scores mean worse terms on mortgages, possibly including higher interest rates, more fees, bigger monthly payments and so on.
- Matt Schulz, LendingTree chief consumer finance analyst
Homeowners are making lifestyle trade-offs to make housing payments on time
As costs grow, mortgage holders are feeling forced to make trade-offs in order to ensure their housing payments are made on time. Among mortgage holders who saw their payments increase, 7% have cut back on everyday spending, 21% have worked additional hours or taken a second job and 20% have reduced or skipped vacations.
About the Author
Catherine Sweeney, Content Strategist/Staff WriterCatherine Sweeney, Content Strategist/Staff Writer
Catherine Sweeney is a content strategist and staff writer for Pro Builder and Custom Builder Online, with a focus on design trends, new products, and environmental issues. Contact her at csweeney@endeavorb2b.com.