Why Homeowners Are Struggling To Afford Monthly Expenses

More than 80% of recent homebuyers say they regret their purchase, according to a recent survey from Clever Real Estate. Home prices have been rising faster than incomes, which can be a problem for homeowners because as the value of a home rises, so does the cost to maintain it. Property taxes and insurance premiums have been rising at a rapid rate, influenced by inflation and the increase in catastrophic weather events.

Chapters:
0:00 Introduction
1:17 Property taxes
3:44 Homeowners insurance
6:08 Tips for prospective and current homeowners

Produced and Shot by: Charlotte Morabito
Edited by: Nora Rapapport
Additional Camera: Natalie Rice, Emily Rabbideau
Animation: Jason Reginato, Christina Locopo
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images

About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Connect with CNBC News Online

#CNBC
#homeownership
#realestate
#mortgage

Why Homeowners Are Struggling To Afford Monthly Expenses

[DonaldMark-nese]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[oneillbilder]

I'm in Michigan, and the housing market here over the past 7-8 years has been unprecedented. Houses that were purchased for $130K in 2015 are now going for $590K. These are tiny, poorly constructed 950-square-foot homes in quiet, mediocre neighborhoods. Meanwhile, nicer, average-sized homes in better neighborhoods that were over $300K a decade ago are now selling for $750K+. It's wild.

[janetairlines]

The american dream now is being able to eat every day

[alexsteven.m]

Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market

[Scrunchie_]

Property taxes, homeowners insurance, HOA - the endless racketeering of the American people

[ElizabethMoore-kh]

Housing prices likely won’t drop significantly until supply increases. The U.S. is short millions of housing units and isn’t building fast enough. Demand remains high, and even a small dip in prices attracts many buyers. I’m looking to buy affordable houses in 2024 and maybe invest in stocks. When’s the best time to invest in stocks? Some say it’s profitable, but others warn it’s risky. Any advice?

[kortyEdna]

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[casonator]

It's always frustrating when the advice is "shop around, find out everything, haggle, etc.", when usually the answer boils down to "This is more than you can afford no matter what you do."

[clineshaunt]

I used to work in a bank 20 years ago and I would advise people that affording a mortgage is not the same as affording a house.

[WillieNickell]

I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2025. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?

[CameronFussner]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[mutedearthvirgo]

I gave up on buying a home and started looking into condos just to learn most HOAs tack on an extra $500-$1000 to the mortgage. I'm so tired....

[fosterwhales]

Fighting 8.5% inflation (more like 35%) with a 1% Fed funds interest rate is like stopping a forest fire with a bucket of water. Folks prepare accordingly. Make investment in other not to depend on the government for funds

[NadiaSeesIt]

My husband has two full time jobs and I have one. One small child who stays home, no daycare. We cut costs everywhere to try to get ahead and pay off debt (mostly student loans). Our A/C and Furnace broke at the same time - $15, 000 bill. With groceries being triple the cost, all insurance increasing in price, and all baby related things being inflated - it's hard to get ahead. I'm sick of this "healthy" economy that's actually hurting us all.

You can do all the "right" things and still lose.

[MentalSmarties]

Biggest thing I learned from home ownership since I bought my first home two years ago is that the “maintenance and repairs” people talk about out is very real. I thought “Meh, those will be rare occurrences”. But even in a newer-ish home (mine was built 2005), stuff definitely happens lol. Maintaining the front and back lawns, small crap that happens with the garage, a faucet acting stupid, etc. Stuff just happens and having a fund for that is important.

[mattf]

Its not a corporate media YouTube video without MARIMBA 😂

[Allaiya.]

Never take the maximum amount you're approved at. You're setting yourself up for being house poor & cash strapped that way. Banks will always stretch it because they want that interest. I only used about 33% of the amount I was approved for and am not stressing as a result.

[brianchappell]

I bought my house in 2018. My home insurance has more than tripled since then (1200 -> 3800 in 6 years). And the company I'm with is still one of the lowest premiums compared to other quotes I've received. It's completely unsustainable and ridiculous.

[SVKrillemall]

because the whole system is a scam....

[dawolvx]

My property taxes is more than my actual mortgage FFS.