Aimée Bennett 
Key takeaways:
- In Unlock’s latest economic survey, more than half of U.S. homeowners say the cost of homeownership is more than anticipated
- Homeowners are cutting essential and discretionary spending to keep pace.
- Home equity can offer homeowners a solution to ease finances and plan for the future they envision.
U.S. homeowners are struggling to afford homeownership, weighing options and making difficult financial choices to manage the costs.
Dealing with higher-than-anticipated expenses, homeowners are facing a dilemma, according to our latest survey. Most do not plan to sell their homes, have limited emergency fund savings, and are stressed by personal finances. In response, they are cutting corners on major purchases, everyday expenses, and even retirement savings.
As homeowners struggle and search for a way to cope with the current economy, the solution for many may lie in the wealth they have stored in their homes. Tapping home equity is an option the majority have not considered, yet one that opens access to significant funds to help ease finances and plan the future they envision.
Homeownership More Expensive Than Expected
Sixty-five (65%) of U.S. homeowners say the cost of homeownership is more expensive than what they thought it would be before becoming a homeowner. To afford life as a homeowner, the survey found that they are cutting both essential and discretionary spending and making some stark personal choices to keep costs in check, as the chart below shows.
In addition, 21% are staying in their starter home longer than anticipated. Homeowners are also purchasing more on credit (17%), delaying funding a business (10%) and holding off on starting a family (7%).
Still, the vast majority don’t plan to give up on homeownership. Three out of four (75%) say they have no plans to buy or sell a home this year. Respondents say that to consider purchasing, the 30-year fixed-rate mortgage rate would need to fall below 4%. Nor are they planning to refinance, until the 30-year fixed-rate mortgage falls to 3.6%.
These findings show homeowners are even more reluctant to take on a new mortgage than they were when we surveyed them last fall. At that time, 59% of homeowners said they were not likely to purchase a new home until a 30-year fixed-rate mortgage was 6% or lower.
Homeowners Are Stressed
Finances are a major source of stress, with 46% of U.S. homeowners saying personal finances cause the most stress in their lives. That’s followed by death of a loved one (33%) and personal injury or illness (31%).
Nearly a third (30%) of homeowners indicate they have less than $1,000 in emergency fund savings, In addition, over half (52%) say that day-to-day expenses, like gas and groceries, are causing moderate, high or extreme stress in their lives. A quarter describe the stress of living expenses as either extreme or high.
Monthly Payments are Painful
Already stretched, homeowners indicate they can’t afford to add more items to the budget – specifically, more monthly payments. Many would go to great lengths to avoid another monthly payment:
Majority of Homeowners Feel Worse Off Today
In this scenario, it’s not surprising that most homeowners do not feel their financial lives are improving. Compared to a year ago, 32% of homeowners feel worse off financially, while 41% feel the same financially. Only 27% say they feel better off financially. Almost half (46%) say they have more concerns about their finances today than worries about their future financial situation.
Home Equity Offers a Solution
It’s clear that homeowners need some relief. For now, they are not looking to economic policy for that relief. A majority (60%) report believing policy changes – such as with legislation, executive orders and government incentives – could solve the housing affordability crisis, but only 21% believe it actually will. Another 39% believe it is possible but won’t happen anytime soon.
Home equity may offer many homeowners the solution. Our survey found that 76% of homeowners share the belief that homeownership remains one of the best ways to grow their personal wealth, and 60% report that having the option to leverage their home equity provides an extra level of financial security. Of those planning to tap their home equity, the main reasons were to either improve their home value or personal finances.
To those points, American homeowners now hold more than $30 trillion in home equity, averaging about $300,000 for mortgaged homes. Yet while 60% of survey respondents say that having the option to leverage home equity provides an extra level of financial security, nearly half (46%) don’t even know how much equity they have built in their homes.
Conclusion
This is the time for American homeowners to take a new look at home equity as a smart financial tool.
Today, homeowners have more options than ever to tap their equity – including the home equity agreement, providing a straightforward path without the worries of a monthly payment. Why not access that equity now to gain some breathing room and build a foundation for the future?
Survey methodology: Unlock commissioned Atomik Research to conduct an online survey of 2,003 homeowners throughout the United States Jan. 24-30, 2026. The margin of error is +/- 2 percentage points with a confidence level of 95%. Atomik Research, part of 4mediagroup, is a creative market research agency.
To download the raw survey data, click here.
