43% of Homeowners Feel ‘House Rich and Cash Poor’ Even as 4 in 5 Report Having Equity, Study Finds

New research finds homeowners are more likely to use credit cards than home equity in a financial emergency (64% vs. 43%).

ATLANTA, GA, UNITED STATES, October 16, 2026 /EINPresswire.com/ — American homeowners held roughly $35.8 trillion in home equity as of the second quarter of 2026, a new record according to the Federal Reserve, yet the cost of keeping a home has climbed faster than many households can absorb. A new survey from AmeriSave finds that 43% of homeowners describe themselves as “house rich and cash poor,” even though four in five report having at least some equity in their homes.

The survey of 1,000 U.S. homeowners examined how housing costs have changed relative to income, the trade-offs owners are making to keep up, how they view and use their equity, and what is keeping them in their homes. Nearly half (45%) said their housing costs have now outpaced their income.
The findings suggest a gap between the wealth homeowners hold on paper and the cash they have on hand each month. Most owners aren’t looking to leave, and many have built substantial equity, but relatively few treat that equity as a resource when costs spike.

Key Takeaways

• 43% of homeowners feel “house rich and cash poor,” though 4 in 5 report having at least some equity

• 45% say housing costs have outpaced their income; only 11% say their income has grown faster

• 79% say utility costs have risen over the past three years, along with homeowners insurance (73%) and property taxes (72%)

• 64% would use a credit card in a financial emergency, compared with 43% who would tap home equity

• 53% have cut discretionary spending because of housing costs, and 37% have scaled back retirement contributions

• 49% worry climate or weather risks will make their home harder or more expensive to insure

• 55% say they’re happy where they are, and 46% feel financially comfortable staying long term

• 62% of Gen Z homeowners say ownership has been more financially stressful than expected, compared with 36% of baby boomers

The Bills Around the Mortgage Keep Climbing

For most homeowners, the pressure is coming from the costs that surround the mortgage rather than the mortgage itself.

• 79% said utility costs have risen over the past three years

• 73% said homeowners insurance has risen, and 72% said the same of property taxes

• 67% saw maintenance and repair costs rise, with 26% calling the increase significant

• 23% said an emergency plumbing, heating, or electrical repair strained their budget in the past year

• 34% saw their mortgage payment itself go up

Older owners report the sharpest squeeze relative to income. Half of Gen X (50%) and 51% of baby boomers said housing costs have overtaken their income, compared with 45% of millennials and 32% of Gen Z. The findings suggest a small or paid-off mortgage offers limited protection when income is fixed and every surrounding cost is rising. By income, middle earners were the most likely to say costs had outpaced pay (52%), ahead of lower earners (46%) and higher earners (37%), which may reflect a group with less room to absorb surprises than higher-income households.

Rising Values, Tighter Budgets

Higher home values have not translated into a sense of financial security for many owners.

• 66% said their home’s value has gone up, but they don’t feel better off financially because of it

• 42% describe their equity as substantial, and 41% as moderate

• 11% aren’t sure how much equity they have

• 19% view their equity primarily as a long-term wealth-building asset, while 25% don’t think about it at all

The “house rich and cash poor” label lands hardest on younger owners. Nearly half of Gen Z homeowners (49%) use it, compared with 43% of millennials, 42% of Gen X, and 31% of baby boomers. That runs opposite to the cost-versus-income measure, where older owners reported more strain, and the findings suggest the cash-poor feeling may be tied as much to a thin equity cushion and recent purchase prices as to monthly bills.

Savings and Life Plans Absorb the Difference

To keep up, homeowners are cutting first from optional spending and then from long-term security.

• 57% have delayed or scaled back home upgrades

• 53% have cut discretionary spending such as vacations and dining out

• 49% have reduced emergency savings contributions

• 37% have scaled back retirement contributions

• 24% have taken on extra work, and 23% have taken on credit card debt to cover housing costs

The findings suggest many owners are paying for one long-term asset by drawing down others. Housing costs have also reached personal milestones, with 17% of homeowners saying they’ve delayed having children or growing their family and 12% saying they’ve put off marriage. Among Gen Z homeowners, those figures rise to 34% and 24%. Gen Z owners are also cutting emergency savings (54%) and retirement contributions (48%) at higher rates than boomers (37% and 27%).

In an Emergency, Credit Cards Outrank Home Equity

Homeowners with equity are still more likely to borrow at credit card rates when an unexpected bill arrives.

• 85% would dip into savings in a financial emergency

• 64% would use a credit card

• 43% would tap their home equity

• 14% have used or currently hold a HELOC, 9% a home equity loan, and 7% a cash-out refinance

The gap carries a cost. The average credit card interest rate was about 21% in the second quarter of 2026, according to Federal Reserve data, while the average home equity loan rate was 8.13% in Bankrate’s Sept. 9, 2026, survey. The findings suggest familiarity, more than access, is the barrier, as 32% said they haven’t considered tapping their equity at all in the past year. When the choice is framed as borrowing against the home or selling it, 38% would rather access their equity, compared with 17% who would sell. Women were more likely than men to say they’ve never considered accessing their equity (37% vs. 25%), and 20% of lower-income homeowners weren’t sure how much equity they have, compared with 9% of middle-income and 4% of higher-income owners.

Most Owners Are Staying, Many by Choice

Despite the pressure, a majority of homeowners say they’re content where they are.

• 55% said they’re happy where they are

• 35% would consider moving but feel constrained by affordability, including 14% locked in by their mortgage rate and 21% deterred by home prices or costs elsewhere

• 25% considered selling in the past year, and 10% did

• 41% question whether rising insurance costs will let them stay long term

The rate lock falls hardest on the newest owners. Nearly a quarter of Gen Z homeowners (24%) feel locked in by their mortgage rate, compared with 18% of millennials, 8% of Gen X, and 4% of baby boomers. The findings suggest that staying put is a preference for most owners and a constraint for a meaningful minority, with weather-driven insurance costs emerging as a longer-term concern.

Stress Runs Highest Among the Newest Owners

Over half of homeowners (51%) said owning has been more financially stressful than expected, yet 46% still feel comfortable staying long term.

• 62% of Gen Z said ownership has been more stressful than expected

• 55% of millennials and 42% of Gen X said the same

• 36% of baby boomers reported more stress than expected, the lowest of any generation

• 60% of boomers feel comfortable staying long term, compared with 39% of Gen Z

The findings suggest the strain follows a curve. Owners with the highest purchase prices and smallest equity cushions feel it most today, and they also have the most time ahead to build equity.

Taken together, the survey describes homeowners who hold real value and largely want to stay, while managing a gap between that value and the cash needed to keep pace with rising costs. How well owners understand their equity, and the options for using it, may shape how they handle the next unexpected bill.

View the full study here:
https://www.amerisave.com/learn/the-house-rich-cash-poor-paradox

About

AmeriSave (NMLS #1168) is a national mortgage lender that helps Americans buy a home, refinance their current mortgage, or access the equity they’ve built in their home. The company pairs digital-first tools with personalized lending support, reviewing each borrower’s entire financial situation to identify the loan options that best fit their needs.

Taylor Jay
Resolve Marketing
+1 208-695-3918
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