6 Key Signs You’re House Poor and Don’t Even Realize It
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Owning a home has long symbolized financial security, but in 2025’s high-cost environment, some Americans may find that their homes are actually straining their budgets. Being “house poor” doesn’t always mean you’re behind on payments; it can simply mean too much of your income goes toward your home, leaving too little for savings, emergencies or everyday life.
Experts explained six key signs that you may be house poor without realizing it.
1. Your Housing Costs Exceed 30% of Your Income
Financial planners agree that once housing costs consume more than 30% of your gross income, your budget starts to tighten. That figure includes not only your mortgage, but also property taxes, insurance, utilities and upkeep, according to Taylor Kovar, CFP, founder and owner of 11 Financial. As those costs rise, even stable homeowners can find themselves stretched too thin.
Keeping your housing costs to 30% or less “will enable you to protect your cash returns, to meet your monthly showing expenses and meet unexpected bills without using undue financial pressure on yourself,” added Ryan McCallister, president and founder of F5 Mortgage.
If your housing expenses begin to dominate “other vital life expenses,” it’s time to consider changes, said Ben Kruse, a South Jersey realtor and founder of Choose Kruse.
2. You’re Ignoring Hidden Homeownership Costs
Many homeowners underestimate the true costs of owning a home. “The largest mistake I see … is not quite factoring in all hidden costs: repairs, utilities or even seasonal maintenance, which can easily add yet another 5% to 10% to the budget,” said Ben Mizes, a licensed real estate agent, co-founder and president of Clever Offers
Other costs include taxes, insurance, landscaping, pest control and homeowner’s association costs, McCallister added. Failing to account for these often pushes homeowners into “house-poor” territory before they realize it.
“The hidden costs are what catch most homeowners off guard,” Kovar said. “Property taxes go up, the A/C breaks, insurance premiums rise and suddenly that affordable home isn’t so affordable anymore.”
3. You’re Using Credit Cards To Cover Essentials
When home costs are too high, people often turn to credit cards for basic expenses or start skipping savings and retirement contributions. That’s a telltale sign your housing costs are outpacing your income.
Kruse warned, “The house is taking more than it is giving when you stop putting money into retirement accounts, do not create an emergency fund and use debt to pay for necessary expenses.”
4. You’re Sacrificing Daily Quality of Life
A “house poor” lifestyle doesn’t just show up in your finances, it affects your day-to-day well-being. “You find yourself putting off basic things like car repairs or dental visits because your mortgage is eating up your disposable income,” Mizes noted.
In addition to putting off necessary things, you might find yourself skipping family activities, delaying travel or feeling anxious whenever something breaks, added Mike Bennett, founder and CEO of DealMate Real Estate.
“House poverty symptoms start with small financial difficulties, which become more apparent when money runs out before the next paycheck,” Kruse said.
5. Rising Rates or Property Taxes Have Blown Up Your Budget
Even a well-planned mortgage can become unaffordable when external costs climb. “Property taxes and insurance premiums quietly rising every year, especially in high-risk areas, can degrade a home from affordable to unaffordable,” Mizes said.
The combination of these costs plus utility expenses and other costs of living intensify the financial pressure on homeowners until what used to be affordable housing becomes unaffordable, Kruse pointed out.
6. You’re Not Planning for ‘What-If’ Scenarios
Experts recommended stress-testing your budget regularly to make sure your housing costs would still be manageable if your income dipped or expenses rose. A realistic “what-if” check can keep you from crossing into financial danger.
“Ask yourself, ‘Could I still afford this if my income dropped by 10% or if my property taxes went up?'” Kovar suggested.
Bennett recommended his clients test three scenarios before buying: steady income, temporary job loss and a surprise expense like a new roof. “If the numbers only work in the best case, the home isn’t truly affordable.”
Even homeowners who currently have stable financial situations should conduct a “what-if analysis” to understand how future interest rate increases will impact their financial stability, Kruse added.
If these signs sound familiar, it may be time to rebalance your budget so your home supports your life instead of controlling it.
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