Scores of homeowners across the US have described how rising mortgage rates, soaring insurance premiums, and increased property taxes have turned home ownership into a financial burden. Many said they felt stuck in properties they could barely afford, with some describing their homes as 'money pits'.
Meg, a 60-year-old office manager from Maryland, bought her home in 2020 to escape rising rents, but now faces mounting costs. She had to take out an additional mortgage for essential repairs, and her insurance deductibles keep increasing. 'Our necessities consume 75% of my income, with 50% of that housing costs,' she said.
Bernie, a 45-year-old network engineer from Minneapolis, earns over $250,000 a year but said home ownership is a 'destabilising force'. The couple is foregoing medical and dental treatment to afford their $300,000 home and plan to sell up and move into an RV in four years. 'Our house provides no security,' he said.
Amie, a self-employed writer from rural Maine, secured a low 3.5% mortgage rate in 2020 but is overwhelmed by other costs, including $65,000 to $140,000 for a new roof and property taxes of $4,000 annually. 'If we could build a small holding on this land and get rid of this house I absolutely would. I feel trapped,' she said.
Stephanie, a 49-year-old psychotherapist, sold her Massachusetts home and bought a manufactured home in Colorado for $130,000. After 17 years of mortgage payments and upkeep, she walked away with only $200,000. She doubts she can ever own a non-manufactured home again, citing high costs and the risk of falling into arrears during illness.
Many homeowners expressed a desire to sell but feel unable to do so due to higher mortgage interest rates on new loans or unaffordable rents. The combination of elevated mortgage and loan interest rates, exploding insurance premiums, rising property taxes, and high maintenance costs has left many Americans feeling trapped in homes that are no longer assets but financial liabilities.
