Over 18 Million Americans Struggle with Housing Costs, LendingTree Study Finds

A recent study by LendingTree shows that more than 18.3 million homeowners in the United States are considered "house poor," meaning they spend over 30% of their monthly income on housing expenses, including mortgage, utilities, and other costs. Additionally, over 18 million Americans are living in homes that significantly strain their budgets, indicating a concerning trend in the housing industry.

Regional Disparities

The study also highlights regional disparities, with high-cost of living states such as California, Hawaii, and New York showing the largest share of house poor residents. In contrast, states like West Virginia, Indiana, and Arkansas have the fewest instances of house poor homeowners, according to LendingTree.

Challenges in Affordability

While being labeled as "house poor" does not necessarily mean homeowners are struggling, it underscores the challenges many Americans face in maintaining affordable housing. The current economic climate, characterized by high inflation, record-high home prices, and mortgage rates hovering around 7%, has added to the difficulty of managing housing costs. The median U.S. home price recently reached an all-time high of $394,000, up 4.4% from the previous year, as reported by Redfin.

Declining Numbers

In a hopeful sign, the LendingTree study suggests that the number of house-poor homeowners may be declining. Comparing with previous estimates, the study indicates a reduction in the count of house-poor homeowners, with about 19 million individuals falling into this category in 2023, according to a Harvard University estimate.

State-by-State Breakdown

Here's a breakdown of the states with the highest and lowest concentration of cost-burdened homes, according to LendingTree's findings:

• High Concentration:
  • California: 2.2 million house poor, 1 million severely housing cost-burdened
  • Hawaii: 88,000 house poor, 39,000 severely housing cost-burdened
  • New York: 1.1 million house poor, 550,000 severely housing cost-burdened
• Lowest Concentration:
  • West Virginia: 73,000 house poor, 36,000 severely housing cost-burdened
  • Indiana: 314,000 house poor,132,000 severely housing cost-burdened
  • Arkansas: 132,000 house poor, 60,000 severely housing cost-burdened