SAN DIEGO — More than half of U.S. homeowners say it has become harder to cover housing costs since buying their homes, while many are reluctant to move because doing so would mean giving up a lower mortgage rate, according to a survey released by home equity investment company Splitero.
The survey of 2,713 homeowners found 55% said housing expenses were more difficult to manage than when they purchased their homes. Meanwhile, 37% said they were staying put to avoid taking on a higher mortgage rate, a share that rose to 46% among respondents who have mortgages.
Splitero said the findings illustrate how homeowners face pressures beyond their monthly mortgage payments, including utilities, taxes, insurance and repairs.
Costs Force Trade-Offs
Among the survey’s findings:
- 39% cited utilities and 39% cited property taxes as sources of financial strain, compared with 19% who cited mortgage payments.
- Among respondents who took steps to manage rising housing costs in the past year, 42% reduced spending on daily essentials, 37% postponed necessary maintenance and 33% tapped savings.
- 36% worried that higher taxes, insurance premiums or homeowners association fees could eventually force them to sell.
- Only 39% said they could pay for an unexpected $5,000 home repair with cash; 21% said they would use a credit card.
Staying Put Brings Pressures
Splitero reported that 55% of respondents considered their current residence their “forever home.” Among that group, 41% said avoiding a higher mortgage rate was a reason for staying.
Of homeowners staying put to preserve their mortgage rate, 32% said they had delayed needed maintenance in the previous year. And 63% said unexpected maintenance costs concerned them more than everyday expenses.
More than half of these rate-locked homeowners — 52% — said they would use home equity for renovations or repairs, compared with 44% of homeowners overall.
Questions About Accessing Equity
The survey also found 42% of homeowners said they could not afford another monthly payment, while 41% believed all ways of accessing home equity required one. Another 53% said they would be more willing to tap equity if doing so did not add a monthly payment.
Splitero offers home equity investments, which generally provide cash in exchange for a share of a property’s future value rather than requiring monthly loan payments. Such agreements can carry fees and potentially substantial settlement costs, depending on the home’s value and contract terms.
The company said homeowners should review fees, settlement provisions and potential future costs before selecting a financing option.
The online survey was conducted Sept. 16-23 by PureSpectrum for Splitero among U.S. homeowners ages 35 to 85. It used a nonprobability sample, meaning the findings should not be treated as a statistically representative random survey of all homeowners.
