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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 74 July 2024 J O U R N A L MILLIONS OF U.S. HOMEOWNERS REMAIN 'HOUSE POOR' I t goes without saying that buying a home is not cheap. While some homeowners can manage their housing costs, others are not so equally fortunate and are housing cost-bur- dened, or "house poor." According to a new study from LendingTree, nearly 20 million American homeowners across the United States are considered house poor. What it means to be "house poor" varies depending on the homeowner. However, in general, persons who spend more than 30% of their monthly income on housing costs—including their mort- gage as well as additional bills such as insurance and utilities—are considered housing cost-burdened. Measuring Cost-Burdened U.S. Households LendingTree research found that roughly 18,381,169 (21.93%) of owner-occu- pied households in the United States are house poor. Of those that are house poor, some 44.20% are severely housing cost-bur- dened, meaning they spend more than 50% of their monthly incomes on housing costs. California, Hawaii, and New York have the largest share of house poor homeown- ers. In these three states, 29.92%, 28.70%, and 27.12% of owner-occupied households, respectively, are housing cost-burdened. Further, over 1.6 million owner-occupied households across California, Hawaii, and New York are severely housing cost-bur- dened. Overall, 47.12% of low-income homeowners in these states face signifi- cant housing costs. Homeowners are least likely to be house poor in West Virginia, Indiana, and Arkansas. Respectively, 13.54%, 16.38%, and 16.53% of owner-occupied households in these three states are housing cost-bur- dened. While these figures are relatively low compared to other states, nearly 520,000 homeowners across the three are house poor. Additionally, cost-burdened homeowners in West Virginia and Arkan- sas are more likely to be severely cost-bur- dened than house-poor homeowners in most other U.S. states. States Where the Largest Share of Homeowners Are House Poor » California » Hawaii » New York Market Trends » New Jersey » Massachusetts » Connecticut » Florida » Vermont » New Hampshire » Oregon No. 1: California—The Golden State » Total number of owner-occupied households for whom cost-burdened status is known: 7,496,004 » Number of owner-occupied households that are house poor: 2,242,907 » Number of house-poor households that are severely housing cost-burdened: 1,041,113 » Share of owner-occupied households that are house poor: 29.92% » Share of house-poor households that are severely housing cost-burdened: 46.42% No. 2: Hawaii—The Aloha State » Total number of owner-occupied households for whom cost-burdened status is known: 306,212 » Number of owner-occupied households that are house poor: 87,898 » Number of house-poor households that are severely housing cost-burdened: 38,809 » Share of owner-occupied households that are house poor: 28.70% » Share of house-poor households that are severely housing cost-burdened: 44.15% No. 3: New York—The Empire State » Total number of owner-occupied households for whom cost-burdened status is known: 4,166,296 » Number of owner-occupied households that are house poor: 1,129,716 » Number of house-poor households that are severely housing cost-burdened: 550,648 » Share of owner-occupied households that are house poor: 27.12% » Share of house-poor households that are severely housing cost-burdened: 48.74% States Where the Smallest Share of Homeowners Are House Poor » West Virginia