America’s officially house poor

Homebuyers who manage to clinch the keys to a house are landing in a whole new mess: 59% feel “house poor,” according to a LendingTree poll. Half of respondents are spread so thin they’ve missed at least one monthly mortgage payment this past year.

High rates and home prices have pushed homeowners into a predicament where the math no longer adds up: Nationally, nearly three in 10 homeowners spend more than the recommended 30% of their income on housing, according to Census Bureau data. Although the typical mortgage holder pays roughly $1,300 in principal and interest a month, buying in today’s market requires roughly $1,100 more per month than before.

Principal and interest also aren’t the only costs of owning a house. Home maintenance, insurance, and property taxes run $1,380 a month, a figure that has climbed nearly 32% in five years, according to Zillow. Lenders often fold these expenses into mortgage payments, so even a 30-year fixed-rate loan can turn into a moving target.

The trick to staying out of the “house poor” club? Budget for all the costs of owning a home, including the sneaky ones, and look for ways to bring them down.

• Home maintenance runs around $11,171 annually. This will vary widely based on the type of home you’re buying, however. Condos and townhomes typically come with less upkeep. New construction may need fewer repairs (and might even cost less than an old home in certain areas with overconstruction).
• Property taxes cost homeowners $3,129 per year on average. Think that’s set in stone? On the contrary, you can appeal your property taxes online. Homeowners who try it slash their property tax bill by $500 on average.
• Home insurance runs around $2,266 annually and is the fastest-rising expense, already eclipsing tax payments in three cities (Houston, Phoenix, Denver, and Nashville, TN). This means it’s best to get an insurance quote before you buy and shop around for the best policy, which can save homeowners $440 per month in premiums.

These under-the-radar expenses also vary widely by area, ranging from $14,187 in Phoenix to $25,111 a year in New York. So if you’re open to a change of scenery, the right move could save a bundle. Check out where homeowners pay the most and least.