You are using an older browser version. Please use a supported version for the best MSN experience.

Here's how many people are house poor in every state

Mediafeed Logo By Elissa Suh of Mediafeed | Slide 1 of 55: There's a term for people who spend too much money on their housing — “house poor.” If you fall into this category, it means that you spend a large portion of your income on housing costs, which can make it harder to save money for other living expenses or financial obligations, like paying off debt.Being house poor ultimately means you’ll have less disposable income. You might have to skip recreational expenses, like going on a vacation, or you may not be able to furnish your house. Even worse: You might be unable to repay your loans or credit card debt, or have to stop saving for retirement. Today’s mortgage rates have fallen to record lows, which can be enticing for prospective homebuyers. A house can be a fundamental asset, but if you’re spending beyond your means, you could compromise your future financial stability.The U.S. is experiencing an economic downturn, due to the coronavirus pandemic, that has left millions of people unemployed or facing some loss of income. This week, the National Bureau of Economic Research determined that the U.S. had entered a recession at the beginning of March, around the time that the pandemic began. As uncertainty remains over how quickly the economy will recover, it is crucial for homebuyers to be financially prepared, and that means knowing how much of your income is eaten up by housing costs and living expenses. Currently, over four million mortgages are in forbearance as more and more people are unable to pay their home loans.

Do you spend too much on housing?

There's a term for people who spend too much money on their housing — “house poor.” If you fall into this category, it means that you spend a large portion of your income on housing costs, which can make it harder to save money for other living expenses or financial obligations, like paying off debt.

Being house poor ultimately means you’ll have less disposable income. You might have to skip recreational expenses, like going on a vacation, or you may not be able to furnish your house. Even worse: You might be unable to repay your loans or credit card debt, or have to stop saving for retirement. Today’s mortgage rates have fallen to record lows, which can be enticing for prospective homebuyers. A house can be a fundamental asset, but if you’re spending beyond your means, you could compromise your future financial stability.

The U.S. is experiencing an economic downturn, due to the coronavirus pandemic, that has left millions of people unemployed or facing some loss of income. This week, the National Bureau of Economic Research determined that the U.S. had entered a recession at the beginning of March, around the time that the pandemic began. As uncertainty remains over how quickly the economy will recover, it is crucial for homebuyers to be financially prepared, and that means knowing how much of your income is eaten up by housing costs and living expenses. Currently, over four million mortgages are in forbearance as more and more people are unable to pay their home loans.

© globalmoments / iStock
Loading...

XD Load Error

More from Mediafeed

AdChoices
image beaconimage beaconimage beacon